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Modified over 6 years ago
Please make your selection... 1.Choice One 2.Choice Two 3.Choice Three
Willingness to pay for an IPOD
Which price maximizes revenue? 1. $450 2. $350 3. $300 4. $250 5. $200 6.$150
Total Revenue Maximization
Price and Revenue
Demand Curve for Ipods
Elasticity along demand curve
Total Revenue and quantity
If Marginal cost is $50, which price maximizes profits? 1.$350 2.$300 3.$250 4.$200 5.$150
Profit with $50 Marginal Cost per unit
Profit with $100 Marginal Cost per unit
If wholesale price is 80% of retail price and marginal cost is $50, what price maximizes Apple’s profits? 1.$350 2.$300 3.$250 4.$200 5.$150
Profit with $50 Marginal Cost: Wholesale price 80% of retail
Question: What is worse for consumers than a Monopolist? Two monopolists. Vertical Markets: An analysis.
Price discrimination Definition: charging different prices for the same product to different consumers Examples –senior citizen discounts –airfares: business.
Chapter 5 Some Applications of Consumer Demand, and Welfare Analysis.
At what Q is TR maximized? How do you know this is a maximum
Imperfect Competition Pure Monopoly. Price (Average Revenue) Quantity Demanded (Q) Total Revenue (R) Change in Total Revenue (ΔR) Marginal Revenue (ΔR.
I think the distance (as the crow flies) from Paris, France to Vienna, Austria is in the range of: miles miles miles.
Modeling Channel Margins Microeconomics revisited 06/06/06.
Find equation for Total Revenue Find equation for Marginal Revenue
Elasticity & Total Revenue Chapter 5 completion…..
What is the most that you would be willing to pay for an Ipod if you couldn’t get them any cheaper? 1.$600 or more 2.$500 3.$450 4.$400 5.$350 6.$300 7.$250.
What is the highest tuition at which you would have still chosen UCSB? Tuition and fees at UCSB is about $7600 for residents and $25000 for nonresidents.
Firm Supply Demand Curve Facing Competitive Firm Supply Decision of a Competitive Firm Producer’s Surplus and Profits Long-Run.
Figure 8.2 How a Competitive Firm Maximizes Profit
Elasticities. Objectives Students will be able to Calculate the elasticity of demand. Calculate the value at which total revenue is maximized. Determine.
Chapter 5: Demand and Supply Supply and Shifters of Supply.
THE FIRM ’ S BASIC PROFIT MAXIMIZATION PROBLEM Chapter 2 slide 1 What Quantity of Output should the Firm Produce and Sell and at What Price? The Answer.
Consumer and Producer Surplus Consumer and producer surplus are important concepts to use when discussing economic welfare. This presentation looks at.
Factor Markets Chapter 18.
Material for Week 2: Optimization Techniques Problem 3: Interest rate (i) = 15%
Section 14.3 Further Business Application: Elasticity of Demand.
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