In the following table, complete the third column by determining the quantity sold in each country at a price of $20 per toy train. Next, complete the fourth column by calculating the total profit and the profit from each country under a single price. Country France Russia Total Price (Dollars per toy train) 20 20 N/A True Single Price Quantity Sold (Millions of toy trains) False N/A Profit (Millions of dollars) Price (Dollars per toy train) N/A Price Discrimination Quantity Sold (Millions of toy trains) N/A Suppose that as a profit-maximizing firm, Le Jouet decides to price discriminate by charging a different price in each market, while its marginal cost of production remains $12 per toy. Profit (Millions of dollars) Complete the last three columns in the previous table by determining the profit-maximizing price, the quantity sold at that price, the profit in each country, and total profit if Le Jouet price discriminates. Le Jouet charges a higher price in the market with a relatively elastic demand curve. True or False: Under price discrimination, Le Jouet is not dumping toy trains into the Russian market.
In the following table, complete the third column by determining the quantity sold in each country at a price of $20 per toy train. Next, complete the fourth column by calculating the total profit and the profit from each country under a single price. Country France Russia Total Price (Dollars per toy train) 20 20 N/A True Single Price Quantity Sold (Millions of toy trains) False N/A Profit (Millions of dollars) Price (Dollars per toy train) N/A Price Discrimination Quantity Sold (Millions of toy trains) N/A Suppose that as a profit-maximizing firm, Le Jouet decides to price discriminate by charging a different price in each market, while its marginal cost of production remains $12 per toy. Profit (Millions of dollars) Complete the last three columns in the previous table by determining the profit-maximizing price, the quantity sold at that price, the profit in each country, and total profit if Le Jouet price discriminates. Le Jouet charges a higher price in the market with a relatively elastic demand curve. True or False: Under price discrimination, Le Jouet is not dumping toy trains into the Russian market.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter9: Market Structure And Long-run Equilibrium
Section: Chapter Questions
Problem 2MC
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