Consider a small town where there is only one company producing laptops. There are 6 potential customers of laptops, labelled as Customer A to Customer F, respectively. The table below shows the willingness to pay for laptops by each customer, and the marginal cost of various quantities of laptops produced by the company. It is given that the company has a fixed cost of $800. Assume that the company knows each customer's willingness to pay for laptops. If the law. requires the same price to be charged to all customers for the same product, employ the cost-benefit concept to determine the optimal quantity and price, and the profit of the company. How will your answers be affected if the company can charge different prices to \table[[Customer, Willingness to Pay ($), Quantity, Marginal Cost ($)], [A ,1,000, 1,200], [B, 900, 2, 300], [C, 800, 3, 400], [D, 700, 4, 500], [E, 610, 5, 600], [F, 520, 6, 700]] different customers? Customer A Willingness to Pay ($) Quantity Marginal Cost ($) 1,000 1 200 B 900 2 300 C 800 3 400 D 700 4 500 E 610 5 600 F 520 6 700
Consider a small town where there is only one company producing laptops. There are 6 potential customers of laptops, labelled as Customer A to Customer F, respectively. The table below shows the willingness to pay for laptops by each customer, and the marginal cost of various quantities of laptops produced by the company. It is given that the company has a fixed cost of $800. Assume that the company knows each customer's willingness to pay for laptops. If the law. requires the same price to be charged to all customers for the same product, employ the cost-benefit concept to determine the optimal quantity and price, and the profit of the company. How will your answers be affected if the company can charge different prices to \table[[Customer, Willingness to Pay ($), Quantity, Marginal Cost ($)], [A ,1,000, 1,200], [B, 900, 2, 300], [C, 800, 3, 400], [D, 700, 4, 500], [E, 610, 5, 600], [F, 520, 6, 700]] different customers? Customer A Willingness to Pay ($) Quantity Marginal Cost ($) 1,000 1 200 B 900 2 300 C 800 3 400 D 700 4 500 E 610 5 600 F 520 6 700
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Consider a small town where there is only one company producing laptops. There are 6 potential customers of laptops,
labelled as Customer A to Customer F, respectively. The table below shows the willingness to pay for laptops by each
customer, and the marginal cost of various quantities of laptops produced by the company. It is given that the company
has a fixed cost of $800. Assume that the company knows each customer's willingness to pay for laptops. If the law.
requires the same price to be charged to all customers for the same product, employ the cost-benefit concept to
determine the optimal quantity and price, and the profit of the company. How will your answers be affected if the
company can charge different prices to \table[[Customer, Willingness to Pay ($), Quantity, Marginal Cost ($)], [A
,1,000, 1,200], [B, 900, 2, 300], [C, 800, 3, 400], [D, 700, 4, 500], [E, 610, 5, 600], [F, 520, 6, 700]] different customers?
Customer
A
Willingness to Pay ($) Quantity Marginal Cost ($)
1,000
1
200
B
900
2
300
C
800
3
400
D
700
4
500
E
610
5
600
F
520
6
700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fe7897d-69e1-463d-b22d-993fac18537f%2F7faea40c-74f2-4759-8886-709d4b4e7366%2Fjy67yns_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider a small town where there is only one company producing laptops. There are 6 potential customers of laptops,
labelled as Customer A to Customer F, respectively. The table below shows the willingness to pay for laptops by each
customer, and the marginal cost of various quantities of laptops produced by the company. It is given that the company
has a fixed cost of $800. Assume that the company knows each customer's willingness to pay for laptops. If the law.
requires the same price to be charged to all customers for the same product, employ the cost-benefit concept to
determine the optimal quantity and price, and the profit of the company. How will your answers be affected if the
company can charge different prices to \table[[Customer, Willingness to Pay ($), Quantity, Marginal Cost ($)], [A
,1,000, 1,200], [B, 900, 2, 300], [C, 800, 3, 400], [D, 700, 4, 500], [E, 610, 5, 600], [F, 520, 6, 700]] different customers?
Customer
A
Willingness to Pay ($) Quantity Marginal Cost ($)
1,000
1
200
B
900
2
300
C
800
3
400
D
700
4
500
E
610
5
600
F
520
6
700
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