WebFeb 22, 2024 · They were stuck with a $1,500 bill for electricity one summer, and said TXU Energy had moved them from a fixed rate plan to a variable plan without their knowledge. The low rates appealed to her ... WebWhat pricing options does a firm have when the difference between V, the consumer's willingness to pay, and C, the cost to produce the good or service, is large? How does …
Demand, supply, cost, revenue and profit functions
Webfixed cost, so that a firm would be willing to provide the bridge. This first-best solution is based on a number of informational assumptions. First, the demand ... price at which the consumers demand the output q. Ignoring income effects, the total value V(q) to consumers of an output quantity q is the area under the demand curve, given by WebLet the inverse demand function and the cost function be given by P = 50 − 2Q and C = 10 + 2q respectively, where Q is total industry output and q is the firm’s output. ... Thus competition leads to an increase not only in consumer surplus but in total surplus: the gain in consumer surplus (256 − 144 = 112) exceeds the loss in total ... cit bank payment
Solved The residents of the town Ectenia all love …
WebA.Consumers with inelastic demand are less costly to serve, lowering the fixed costs of production. B.If price discrimination expands the size of the market, the fixed costs can be spread over a much larger output level. C.If price discrimination lowers profits, firms will produce less and have lower This problem has been solved! Web(ii) Fixed cost. Variable cost. Variable cost is the cost which varies almost in direct proportion to the volume of production. Fixed cost. Fixed cost is the cost which does not vary directly with the volume of production. If f(x) be the variable cost and k be the fixed cost for production of x units, then total cost is C(x) = f(x) + k, x>0. NOTE WebAnswer: Demand: Q = 12 - P Fixed cost = 2,000,000 Number of residents = 100,000 Average total cost (ATC): for 1000, 2000, 4000, 5000, 10,000 and 20,000 will be respectively, 2000, 1000, 500, 400, 200 and 100 1. … cit bank owner