BUSI 620 MENTOR It's Your Life/busi620mentor.com BUSI 620 MENTOR It's Your Life/busi620mentor.com | Page 37
Spreadsheet Problem 1 : Using a spreadsheet like the following , entering formulas for the total revenue and consumers surplus , and given the following demand curve of a consumer for a monopolist product Q = 14-2p
a ) Find the total revenue of the monopolist when it sells 6 units of the commodity without practicing any form of discrimination . What is the value of the consumer ’ s surplus ?
b ) What would be the total revenue of the monopolist if it practiced first-degree price discrimination ? How much would the consumers ’ surplus be in this case ?
c ) What if the monopolist charged P =$ 5.50 for the first 3 units of the commodity and P =$ 4 for the next 3 units – what type of price discrimination is this ?
Froeb et al .’ s Chapter 14 : a ) Individual problems : 14 – 1 and 14 – 4 .
Individual Problem 14-1 : Why might Mattel set a much lower contribution margin on its Barbie dolls than on the accessories for the dolls ?
Individual Problem 14-4 : A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an autodefrost feature . Female shoppers generally value microwaves more than men and attribute value to the autodefroster feature . There is little additional cost to
Spreadsheet Problem 1 : Using a spreadsheet like the following , entering formulas for the total revenue and consumers surplus , and given the following demand curve of a consumer for a monopolist product Q = 14-2p
a ) Find the total revenue of the monopolist when it sells 6 units of the commodity without practicing any form of discrimination . What is the value of the consumer ’ s surplus ?
b ) What would be the total revenue of the monopolist if it practiced first-degree price discrimination ? How much would the consumers ’ surplus be in this case ?
c ) What if the monopolist charged P =$ 5.50 for the first 3 units of the commodity and P =$ 4 for the next 3 units – what type of price discrimination is this ?
Froeb et al .’ s Chapter 14 : a ) Individual problems : 14 – 1 and 14 – 4 .
Individual Problem 14-1 : Why might Mattel set a much lower contribution margin on its Barbie dolls than on the accessories for the dolls ?
Individual Problem 14-4 : A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an autodefrost feature . Female shoppers generally value microwaves more than men and attribute value to the autodefroster feature . There is little additional cost to