price discriminate, A monopolist selling several dierent products can sometimes "price

+44 141 628 6080
[email protected]

--%>

price discriminate

A monopolist selling several dierent products can sometimes "price discriminate" by bundling her products together. Here's an example. Suppose the U of C is planning to oer a series of two concerts. The rst program in the series consists of music by Chopin; the second, music by Stravinsky. There are four types of patrons with the following reservation prices (willingness to pay) for the concerts:

Romantic Type: $40 for Chopin, $20 for Stravinsky Modern Type $20 for Chopin $40 for Stravinsky

Chopin Lover $45 for Chopin $5 for Stravinsky

Stravinsky Lover $5 for Chopin $45 for Stravinsky

Suppose for simplicity that there is only one individual of each type and everyone can be accom-

modated at either performance. Also suppose the U of C does not know any individual's given

type.

(a) Suppose rst that separate tickets are oered for the two concerts. What is the prot

maximizing price per ticket?

(b) Suppose that only a single ticket for the series is oered. What is the prot maximizing

price for a series ticket? Have prots increased? What is the intuition for this result?

(c) Can you nd a more protable alternative?

View Complete Question

Related Questions in Microeconomics

Q : Illustration of transaction costs You

You are more probable to shop at a remote farmers’ market quite than buy apples at a local grocery store while: (w) possible, since produce is cheaper at the farmers’ market. (x) you would like to buy only vegetables and fruits. (y) the opportunity costs o

Q : Output and experiences by long run

This monopolistic competitor generates Q0 output and experiences: (1) only normal accounting profits, and zero economic profits. (2) positive economic profits. (3) high costs because of excessive managerial salaries. (4) stagnation because

Q : Non-discriminating firm through

The non-discriminating organization with monopsony power in the labor market confronts the: (i) Wage rate which consistently surpasses the marginal revenue. (ii) MRP less than w. (iii) MFC which surpasses w. (iv) Monopolistic seller of the organization’s output.

Q : Efficiency of monopolistic competition

Defenders of the efficiency of monopolistic competition are mainly persuasive when they insist which: (w) consumers benefit greatly from product differentiation. (x) any inefficiency is far less harmful than that of pure monopoly. (y) pure competition

Q : Define Fiscal deficit Fiscal deficit is

Fiscal deficit is equavalent to excess of total expenditure over the sum of revenue and capital receipts excluding borrowings. That is, Fiscal deficit means borrowing of the government. Fiscal Deficit :T

Q : Agricultural demand The demand for

The demand for agricultural products is: A) relatively elastic with respect to price. B) relatively inelastic with respect to price. C) relatively elastic with respect to income. D) downward sloping to the individual farmer, but perfectly elastic to farmers as a group.

Q : Market demands in short run Can someone

Can someone please help me in finding out the accurate answer from the following question. In short run, the market demands are: (1) Stimulated if resource costs increase. (2) Simply estimated employing aggregate data. (3) Positively associated to the

Q : Explain about term market failure The

The phrase "market failure" refers to: (w) the failure of market economies to deal with social problems. (x) the Stock Market Crash of 1929. (y) cases where supplies and demands within private markets yield inefficiency, excessive or inequity instabil

Q : Oligopolistic nature of industries The

The oligopolistic nature of several industries is probably to be attributable to: (1) overly expansionary macroeconomic policies. (2) corporate instability. (3) economies of scale. (4) cooperative gaming. (5) unstable Nash equilibrium.

Q : Skill of dividing the labor work

Whenever Janet and Bob realize that Janet is a better cook and Bob is better at cleaning the lawn, dividing such chores up according to skill is known as: (1) Gains from trade (2) Brute force allocation (3) Division of labor (4) Affirmative action.

Discover Q & A

Leading Solution Library

Avail More Than 1459657 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1927735
Asked

3,689

Active Tutors

1459657

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment