--%>
Assignment Help - homework help

Illustrates marginal cost pricing and differential pricing

Illustrates the marginal cost pricing and differential pricing?

E

Expert

Verified

Marginal cost pricing:

In the marginal cost pricing, the price is found on the basis of marginal cost or variable cost. Under this method, all fixed costs are fully excluded.

Differential pricing:

In this method, the same product is sold at various prices to different customers, in various places, and at various periods. This method is termed as price discrimination or discriminatory pricing. Illustrations are as: Cinema Theater and telephone bills.

   Related Questions in Managerial Economics

  • Q : What are the scopes of managerial

    What are the scopes of managerial economics?

    		•
  • Q : Model of purely competitive resource

    The model of purely competitive resource markets describes how: (1) U.S. income distribution patterns are determined. (2) wages are determined in the United States. (3) resource prices would be determined in efficient markets. (4) competition leads to

    		•
  • Q : Costs and revenue verses Quality

    Refer to figure as in above. What occurs when the firm produces more than Q4 units: w) Its profit raises. x) this makes a loss. y) Its total revenue is increasing quicker than its whole cost. z) this could make a profit or a loss depending upon what occurs

    		•
  • Q : Diminishing Returns in Marginal Revenue

    When a firm is experiencing diminishing returns as: (w) the marginal product of labor rises as more labor is hired. (x) the marginal revenue product of labor falls as more is hired. (y) the marginal resource cost of labor will be declining. (z) this w

    		•
  • Q : Economic incidence of a tax imposing

    The economic incidence of a tax: (i) identical to its legal incidence. (ii) either forward-shifted to suppliers or backward-shifted to consumers. (iii) imposed on whoever suffers decreased purchasing power because of the tax. (iv) more easily found th

    		•
  • Q : Labor-Leisure Trade-offs The relative

    The relative price of leisure rises while there are increases within the: (w) supply of labor. (x) wage rate. (y) cost of living. (z) marginal tax rate on income. Can someone explain/help me with best solution abou

    		•
  • Q : Values of marginal products of the

    Competitive product as well as resource markets yields resource prices and incomes to resource owners that are proportional to the: (1) relative prices of the goods produced. (2) values of marginal products of the resources. (3) distr

    		•
  • Q : Quantity demand declines back and up in

    Suppose that the auto market started at the intersection of S0 and D0, and subsequently higher labor costs drove up prices for latest cars. How will it influence the market for automobiles?: (w) Higher wages for auto workers drive up the total ma

    		•
  • Q : Profit price by earning in Human capital

    As per demonstrated in this graph, there average college graduate will earn around: (1) $12,000 yearly. (2) $20,000 yearly. (3) $45,000 yearly. (4) $90,000 yearly. (5) $100,000 yearly.

    Q : Define the term opportunity cost concept

    Define the term opportunity cost concept.

    		•