The condition under which price discrimination is profitable is

Coffee Staines is an online only coffee company.  There are currently using a single-price pricing strategy, charging $18 for a one pound bag of their standard coffee beans.  Based on their weekly sales data, they believe that there is an opportunity to increase profit for this product by implementing a new pricing strategy.  In the past, they have used a membership-pricing strategy and a block-pricing strategy, but at this time they are not interested in returning to either one of these strategies.  Their data analytics team has determined they have two types of buyers: (1) One-time buyer who is a new buyer who only makes one purchase per year and (2) Repeat buyer who is an existing buyer who makes multiple purchases per year.  Using weekly sales data, the following weekly demand functions were estimated for a one pound bag of coffee beans.  Marginal cost is constant at $4 per one-pound bag of beans.  QO = 5,000 – 200PO – Demand for one-time buyers QR = 4,000 – 100PR – Demand for repeat buyers Coffee Staines is interested in reviewing the profit maximizing prices to charge to each group and the associated profits.  They are curious to see if they can increase profits by charging different prices to each group rather the same price to both groups.   Please answer the following questions:  Single price strategy of $18: How many pounds of coffee beans will be sold to one time buyers and what is the assoicated profit? How many pounds of coffee beans will be sold to repeat buyers and what is the assoicated profit? What is total profit for when using the single-price pricing strategy?   Alternative pricing strategy: What is the profit maximizing price to charge for one time buyers and what is the assoicated profit? What is the profit maximizing price to charge for repeat buyers and what is the assoicated profit? Do you think it is a good idea for Coffee Staines to move away from a single-price pricing strategy and implement a new pricing Strategy? Why or why not?    

Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants. The firm selling suits faces no competition and has a marginal cost of zero. The optimal commodity-bundling strategy is

Consider the following normal form game:  Firm A Firm B   Low Price High Price Low Price 5, 5 6, 3 High Price 3, 6 7, 7 What is/are the Nash Equilibrium(s) in this game?

Which of the following pricing strategies does not usually enhance the profits of firms with market power?

Which of the following statments is NOT true?

In the market for golfballs, the top two companies (Green Company and The Fairway Company) have engaged in an advertising war in an effort to steal market share from each other competitors and become the sole provider of golf balls in the market.  Each company is developing a new advertising campaign, but they are unsure of their competitor’s advertising campaign.  As a result, Green Company has to choose their advertising budget without knowing The Fairway Company’s advertising budget, and vice versa.     The table below shows each firm’s MONTHLY profits for a low budget and a high budget advertising strategy.    The Fairway Company Green Company    Low Budget High Budget Low Budget $8,000, $8,000 $3,000, $10,000 High Budget $10,000, $3,000 $4,000, $4,000               Please answer the following questions: What is the dominant strategy for The Green Company? What is the secure strategy for The Fairway Company? What is the Nash Equilibrium if the two companies only face each other in ONE decision round? Is there a set of strategies that will provide payoffs to each firm that are greater than what they receive in the Nash Equilibrium? If so, what is this set of strategies and what is the associated payoff set?    If these two firms engage in this advertising war each year indefinitely, will The Green Company choose to collude and cooperate with The Fairway Company and play the strategy suggest in Question #4, or will they cheat on the collusive agreeement?  Assume the current interest rate is 7%.     

Suppose that frame M is obtained by rotating Z-axis of frame F by 60 degree, given the position (coordinates) of a point P with respect to frame F is How to calculate the position of P with respect to frame M.

In the figure below, suppose a camera is located at the origin of the world frame, if

While selecting fabric for a structured blouse, a designer is comparing two plain weave options. One has similar numbers of warp and weft yarns per inch (balanced), while the other has significantly more yarns in one direction (unbalanced). What is a key reason the designer might choose the unbalanced weave?