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

Author Question: A firm has two customers with non-identical demands and a constant marginal cost of production. At ... (Read 25 times)

kaid0807

  • Hero Member
  • *****
  • Posts: 515
on: Jul 1, 2018
A firm has two customers with non-identical demands and a constant marginal cost of production. At any positive price, the consumer surplus values for the two customers are related as CS2  CS1 .
 
  What can we say about the optimal two-part tariff for the firm? A) The firm sets the price equal to MC and the optimal tariff is equal to CS2.
  B) The firm sets the price equal to MC and the optimal tariff is equal to CS1.
  C) The firm sets the price equal to MC and the optimal tariff is equal to zero.
  D) The optimal price is greater than MC and the optimal tariff is equal to CS1.

Question 2

Refer to Figure 9.4. If the government establishes a price floor of 40 and purchases the surplus, total consumer and producer surplus will be
 
  A) 15.
  B) 30 widgets.
  C) 1,050.
  D) 1,200.
  E) 1,350


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Melissahxx

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

E


kaid0807

  • Member
  • Posts: 515
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

cam1229

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Acromegaly in one individual from a pair of identical twins. Acromegaly in one individual from a pair of identical twins.
Herbivore biomass is positively correlated with net aboveground primary production. Herbivore biomass is positively correlated with net aboveground primary production.
Cereal production in Africa may decrease by as much as 50% by 2080 in some areas Cereal production in Africa may decrease by as much as 50% by 2080 in some areas
What is the value of the equilibrium constant, K, at 25°C for the reaction? What is the value of the equilibrium constant, K, at 25°C for the reaction?
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
The charge for telephone calls T is partly constant and partly varies with the number N of ... The charge for telephone calls T is partly constant and partly varies with the number N of ...
Video: Hormonal regulation of pregnancy - weeks 2 through 38

For a complete list of videos, visit our video library