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 60 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

Jsherida

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

The neural pathway responsible for the production and learning of song in the male canary. The neural pathway responsible for the production and learning of song in the male canary.
Determining the order and rate constant of an irreversible first-order reaction Determining the order and rate constant of an irreversible first-order reaction
Identical Twin Normal Birth Position Identical Twin Normal Birth Position
Management Information Systems: Managing the Digital Firm, 15th Edition Management Information Systems: Managing the Digital Firm, 15th Edition
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Video: Kinetic parameters & Kinetic experiment

For a complete list of videos, visit our video library