--%>
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 : Shifting of market for productivity

    When the U.S. soybean market is primarily in equilibrium on S0D0, and in that case a new fertilizer raises farm productivity and concurrently, foreigners are permitted greater access to U.S. soybean, there the market shifts to: (

    		•
  • Q : Competitive demand of employer A

    A competitive demand of employer for labor is: (1) derived from the demand that exists for the firm’s output. (2) inverted compared to regular demands. (3) shifted rightward by hikes in real wage rates. (4) positively sloped. (4) determined thro

    		•
  • Q : Illustrates the demand schedules

    Illustrates the demand schedules important for law of demand? Answer: The perception of law of demand may be explained along with the demand schedules are as follow:

    		•
  • Q : Elasticity of Demand for Labor in Firm

    Increasing the wage rate increases total wages received through workers when the demand for labor is: (w) relatively elastic. (x) relatively inelastic. (y) unitarily elastic. (z) perfectly elastic.

  • Q : Describe why firms may shut down

    If a perfectly competitive firm determines that its market price is below its minimum average variable cost, this will sell: w) the output where marginal revenue equivalents marginal cost. x) any positive output the entrepreneur decid

    		•
  • Q : Analysis of Costs and Revenue with

    Refer to below figure. Assume that the firm is currently producing Q2units. What occurs if this expands output to Q3units: w) Its profit raises by the size of the vertical distance df. x) this makes less profit. y) this incurs a loss. z) this wil

    		•
  • Q : Main determinants of wage differentials

    Main determinants of wage differentials comprise: (1) general human capital requirements. (2) working conditions. (3) occupational crowding (4) specific human capital requirements. (5) All of the above. I need a go

    		•
  • Q : Explain elements of managerial

    Illustrates the elements of managerial economics as a tool for decision making?

    		•
  • Q : More Labor productivity American

    American workers tend to be more productive than counterparts of their in South America or Asia into part since they have: (1) superior natural genetic endowments. (2) access to better sports programming, that promotes teamwork. (3) more capital to work with, and supe

    		•
  • Q : Explain the money cost concept briefly

    Explain the money cost concept briefly.

    		•