Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
melinoma86 melinoma86
wrote...
Posts: 386
Rep: 0 0
5 years ago

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
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
Read 101 times
2 Replies
Replies
Answer verified by a subject expert
krobdancekrobdance
wrote...
Posts: 396
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

melinoma86 Author
wrote...
5 years ago
Helps a lot... Now I'm ready for my quiz
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  895 People Browsing
 103 Signed Up Today
Related Images
  
 661
  
 4415
  
 300
Your Opinion
How often do you eat-out per week?
Votes: 79

Previous poll results: Who's your favorite biologist?