Use the following to answer questions 1-3

In a small town, hunter homes is the only builder of homes. suppose hunters total cost is 100,000â‹…Q, where Q is the number of homes built (i.e, marginal and average cost equal 100,000). Currently, there are three customers (Alpha, Beatty, and Epie) considering whether or not to buy a home. their respective demands are indicated below:

 

Alpha P=400,000 and Q=1         Beatty P=300,000 and Q=1      Epie P=175,000 and Q=1

1) what is alpha's reservation price?

a. 400,000

b. 300,000

c. 175,000

d. unable to determine, since not enough information is given

 

2)If hunter is unable to price discriminate, then the profit it will earn from selling three homes, one to each of these three customers, is:

a. 575,000

b. 525,000

c. 225,000

d. none of the above

 

If hunter is perfectly able to price discriminate, then the profit it will earn from selling three homes, one to each of these three customers, is:

a. 575,000

b. 525,000

c. 875,000

d. none of the above

SophiaPretty

(5)

Status NEW Posted 05 Sep 2017 10:09 AM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly-----------

Not Rated(0)

• Buy Answer