1. The Creative Publishing Company (CPC) is a coupon book publisher with markets in several southeastern states. CPC coupon books are sold directly to the public, sold through religious and other charitable organizations, or given away as promotional items. Operating experience during the past year suggests the following demand function for CPC's coupon books: Q = 5,000 - 4,000P + 0.02Pop +0.251 + 1.5A, where Q is quantity, P is price ($), Pop is population, I is disposable income per household ($), and A is advertising expenditures ($). a. Determine the demand faced by CPC in a typical market in which P = $10, Pop = 1,000,000persons, I = $60,000, and A = $10,000. %3D b. Calculate the level of demand if CPC increases annual advertising expenditures from $10,000 to $15,000.

1. The Creative Publishing Company (CPC) is a coupon book publisher with markets in several southeastern states. CPC coupon books are sold directly to the public, sold through religious and other charitable organizations, or given away as promotional items. Operating experience during the past year suggests the following demand function for CPC's coupon books: Q = 5,000 - 4,000P + 0.02Pop +0.251 + 1.5A, where Q is quantity, P is price ($), Pop is population, I is disposable income per household ($), and A is advertising expenditures ($). a. Determine the demand faced by CPC in a typical market in which P = $10, Pop = 1,000,000persons, I = $60,000, and A = $10,000. %3D b. Calculate the level of demand if CPC increases annual advertising expenditures from $10,000 to $15,000.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 17SQ

See similar textbooks

Similar questions

Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue? e. What is the gain in total…
In 2006, the Australian Government incorporated research into corporate social responsibilities to determineif there is a need to include social and environmental responsibilities within the Corporation Act throughamendment procedure. It was decided not to incorporate a particular regulation through legislation, insteadrely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressedthat if companies did not look after the environment or did not act in a socially responsible manner, peoplewould not want to consume the organisations' products. From the equity market perspective, potentialinvestors would not want to invest in the organisations, and further workers wouldn't want to work for them,and so forth. Because companies were aware of such market forces, they would do the 'right thing' even inthe absence of legislation.Requirement:1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theoryto critically…
Which are the two key ’problems’ encountered in aggregating on the consumer side, and why it not occurs on the producer side ? Pls short answer in 15-20 Sentences
cite example where the marketeconomy provides low -priced goods ans sevicesfor lower-income individuals and does so profitably, think of specific examples in the followinfg areas: hotels, air travel, restaurant, clothing, groceries, derinks, entertainment, and vacations.
Write down a model of positive production externality with two firms, in which theproduction activities of one firm directly affects the production/cost of the other firm.State and explain the key assumptions of the model. Using the model, answer thefollowing questions:(a) Explain why the presence of a positive production externality could prevent therealisation of an efficient outcome.(b) Name a possible cure for the positive production externality and explain how itcould solve the inefficiency problem.
A company is considering building a bridge across ariver. The bridge would cost $2 million to build andnothing to maintain. The following table shows thecompany’s anticipated demand over the lifetime ofthe bridge:Price per CrossingNumber of Crossings,in Thousands$8 07 1006 2005 3004 4003 5002 6001 7000 800a. If the company were to build the bridge, whatwould be its profit-maximizing price? Would thatlevel of output be efficient? Why or why not?b. If the company is interested in maximizing profit,should it build the bridge? What would be itsprofit or loss?c. If the government were to build the bridge, whatprice should it charge?d. Should the government build the bridge?Explain.
NPPA caps of medical oxygen and oxygen cylindersIn a massive setback for hoarders (those who stock up) and black marketers, the National PharmaceuticalPricing Authority (NPPA) has capped the prices of medical oxygen and oxygen cylinders amid anincreasing demand for them for coronavirus patients. The Ministry of Health and Family Welfare(MOH&FW) has directed the NPPA to take all necessary measures to immediately regulate the availabilityand pricing of LMO and medical oxygen in cylinder."The present situation of COVID-19 has resulted in increased demand of Medical Oxygen (MO) in thecountry and hence its availability is of utmost importance. Many of the States/UTs are dependent on themedical oxygen supply from other States/UTs," a government press release said.Demand up, production and supply under pressureAs per reports, the demand for medical oxygen has gone up almost four times, from 750 metric tonnes perday to 2,800 metric tonnes daily, causing a strain at all levels in the value…
Time remaining:00 :09 :39EconomicsUse the following to answer questions (29) - (31):In the town of “One Horse” there is one movie theater. Two groups of consumers, adults (A) andchildren (C), attend this theater. Suppose the demand for movies by adults is given by:QA = 50 - 0.50PA, where PAis price ofan adultmovie ticket(in cents)and QAis the numberofmovie tickets sold to adults atthe theater. Suppose the demand for movies by children is given by:QC = 20 - 0.50PC,where PCispriceofa children’s movie ticket(in cents)and QCis the numberofmovie tickets sold tochildren atthe theater. Also, imagine totalcostis fixed at$450, thus makingmarginalcostofprovidingonemore movie ticket to either an adult or a child constant at zero.[29]Ifthe movie theateris able to price discriminate amongits two groups ofconsumers, then itshouldcharge a higher price to group A.A.TrueB.False[30]Ifthemovie theateris able to price discriminate amongits two groups ofconsumers, then itsmaximum profit is closest in value…
You have a demand function like this: Q=100+15P+0.004M2+24R. The derivative dQdP= Select one: a. 100+15P b. 15P c. 15 d. −15
A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat bread(B) with raw wheat (W). The production functions are: Cereal: C = 30WC – 1.5WC2 Bread: B = 63WB – 2WB2 Constraint: WC + WB = 9,820 Profit is $1.00 per box of cereal and $0.50 per pack of wheat bread. There are 9,820 units of raw wheat available. How much wheat should go to the cereal (WC)? Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.
b) Discuss and explain the concept of positive return toscale showing it relationship with the quantity ofproduction.
In this time of pandemic, the demand of some products increased rapidly. Give examples ofthese products where the demand increased. Did the supply correspond with the increasingdemand of these products? What solutions were made to satisfy the increasing demand of theseproducts?