« previous next »

Author Question: Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves ... (Read 143 times)

Bob-Dole

  • Hero Member
  • *****
  • Posts: 547
on: Jul 1, 2018
Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business. If the marginal cost of installing carpet is a constant 1 per sq yard, what price does Bob charge each segment?
 
  What will be an ideal response?

Question 2

While price discrimination is possible between two markets, it is not possible in more than two.
 
  Indicate whether the statement is true or false
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


jaygar71

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 1, 2018
Answer to Question 1

Setting MR = 1 in both markets yields a price of 5.50 in the residential market and 8 in the business market.

Answer to Question 2

False. The number of markets does not matter. All that is required is that markets differ in their respective price elasticity of demand.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Bayliss and Starling discovered the mechanism by which the small intestine and pancreas work togethe Bayliss and Starling discovered the mechanism by which the small intestine and pancreas work togethe
The percentage of women who have cohabited by the age of 45 for 17 countries shows that the ... The percentage of women who have cohabited by the age of 45 for 17 countries shows that the ...
Early cities were small economic centers surrounded by walls to keep out enemies. These cities had ... Early cities were small economic centers surrounded by walls to keep out enemies. These cities had ...
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
An 8th grade class develops a linear model that predicts the number of cheerios (a small round ... An 8th grade class develops a linear model that predicts the number of cheerios (a small round ...
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
Video: Global warming and its effect on climate change

For a complete list of videos, visit our video library