Acompany has two different products that are sold in different markets. financial data are as? follows:

product a

product b

total

revenue

$ 16 comma 000$16,000

$ 9 comma 400$9,400

$ 25 comma 400$25,400

variable cost

? (7 comma 0007,000? )

? (9 comma 9009,900? )

? (16 comma 90016,900? )

fixed cost? (allocated)

? (1 comma 0001,000? )

? (2 comma 2002,200? )

? (3 comma 2003,200? )

operating income? (loss)

$ 8 comma 000$8,000

? $(2 comma 7002,700? )

$ 5 comma 300$5,300

assume that fixed costs of

$ 1 comma 000$1,000

could be eliminated if product b was dropped. assume furthermore that dropping one product would not impact sales of the other. if product b is? dropped, what would be the impact on total operating income of the? company?

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?