This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the Bertrand model with homogeneous products, A) the firm that sets the lower price will ... (Read 19 times)

amal

  • Hero Member
  • *****
  • Posts: 572
on: Jul 1, 2018
In the Bertrand model with homogeneous products,
 
  A) the firm that sets the lower price will capture all of the market.
  B) the Nash equilibrium is the competitive outcome.
  C) both firms set price equal to marginal cost.
  D) all of the above
  E) the outcome is inconclusive.

Question 2

Marge's Beauty Salon sells shampoo and conditioner. Marge has two types of customers. Their willingness-to-pay for shampoo and conditioner are given in the table below.
 
  If Marge bundles the shampoo and conditioner, could she increase revenue? Shampoo Conditioner Type I 8 5 Type II 6 8


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Loise Hard

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

If Marge bundles the products together and sells the bundle for 13, each of her customers will be willing to buy the bundle. Without bundling, Marge would need to sell the shampoo for 6 and the conditioner for 5 in order to sell each customer both items. Thus, revenue from both items is 11 for each customer. Bundling increases Marge's revenues by 2 per customer.


amal

  • Member
  • Posts: 572
Reply 2 on: Jul 1, 2018
Gracias!

LegendaryAnswers

  • Member
  • Posts: 341
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Bohr Model of Hydrogen Atom Bohr Model of Hydrogen Atom
Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called
Marcel Breuer, Armchair, Model B3. Marcel Breuer, Armchair, Model B3.
Elaboration Likelihood Model of Attitude Change Elaboration Likelihood Model of Attitude Change
Model depicting how genetic recombination Model depicting how genetic recombination
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Carbohydrate digestion - mouth and stomach & pancreas and small intestine

For a complete list of videos, visit our video library