Title: -3Chantal owns a hairdressing salon which caters to two main groups of customers: residents ...
Post by: melinoma86 on Feb 28, 2019
Question 1.
Which of the following pricing strategies allows a firm to earn economic profit?• price discrimination
• charging a price equal to marginal cost
• charging a price equal to the average total cost of production
• charging a price equal to the average variable cost of production
Question 2.
Figure 16-3
Chantal owns a hairdressing salon which caters to two main groups of customers: residents of "The Chateau," a retirement community, and other residents in the neighborhood. Figure 16-3 shows the demand curves for the residents of the retirement community, labeled Market A, and other residents in the neighborhood, labeled Market B. The demand curves are not identical.
Refer to Figure 16-3. Suppose the salon price discriminates. What prices are charged in the two markets?
• price in market A = price in market B = $15
• price in market A = $10; price in market B = $15
• price in market A = price in market B = $5
• price in market A = price in market B = $10
Title: -3Chantal owns a hairdressing salon which caters to two main groups of customers: residents ...
Post by: krobdance on Feb 28, 2019
Content hidden
Title: -3Chantal owns a hairdressing salon which caters to two main groups of customers: residents ...
Post by: melinoma86 on Feb 28, 2019
Helps a lot... Now I'm ready for my quiz