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incorporating auto defrost feature. Since men and women cannot be charged different prices for the same product the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $ 70 and one with auto defrost at $ 80 while women value a simple microwave at $ 80 and one with auto defrost at $ 150. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women compromise the bulk of microwave shoppers?
Salvatore’ s Chapter 13: a) Discussion Questions: 8 and 10. b) Problems: 12, 13, and 15.
Discussion 8: What is the basic difference between using a subsidy to induce producers to install antipollution equipment and a tax on producers who pollute?
Discussion 10: Given the difficulties that the regulation of public utilities faces, would it not be better to nationalize public utilities, as some European countries have done? Explain your answer
Problem 12: Determine whether the Justice Department would challenge a merger between two firms in an industry
incorporating auto defrost feature. Since men and women cannot be charged different prices for the same product the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $ 70 and one with auto defrost at $ 80 while women value a simple microwave at $ 80 and one with auto defrost at $ 150. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women compromise the bulk of microwave shoppers?
Salvatore’ s Chapter 13: a) Discussion Questions: 8 and 10. b) Problems: 12, 13, and 15.
Discussion 8: What is the basic difference between using a subsidy to induce producers to install antipollution equipment and a tax on producers who pollute?
Discussion 10: Given the difficulties that the regulation of public utilities faces, would it not be better to nationalize public utilities, as some European countries have done? Explain your answer
Problem 12: Determine whether the Justice Department would challenge a merger between two firms in an industry