ABC Cosmetic is going to launch a new special cleansing cream for men. It has a constant marginal cost of $30 and the estimated price elasticity of demand is –4/3. What price should ABC Cosmetic charge for the cream? Show your calculation
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ABC Cosmetic is going to launch a new special cleansing cream for men. It has a
constant marginal cost of $30 and the estimated price elasticity of
What price should ABC Cosmetic charge for the cream? Show your calculation.
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- An international airline in Ghana ,Emirates ,estimates that the price elasticity of demand for business who travellers weekdays is -3,while that for vacation travellers who travel on weekends is -5 .if the aim of the airline is to maximise profit what pricing strategy will you recommend to the airline and why?For the Minnie Mice Company, the elasticity of demand is −6 and the profit-maximizing price is 30. If MC is marginal cost and AVC is average variable cost, then: Group of answer choices MC = 25 AVC = 25 MC = 30 AVC = 36 MC = 36 Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.There are 11 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.7. The elasticity of supply for each firm is 2.6. The elasticity of demand faced by an individual ISP provider is
- Big Boss is a local pet shop, mainly selling cat food. It has a constant marginal cost of $24. She recently runs a promotional campaign using discount coupons. Suppose Big Boss estimates price elasticity of demand for coupon users and non-coupon users are –3.0 and –1.6 respectively. Calculate the prices Big Boss should charge on coupon users and non-coupon users respectively.The elasticity of demand for a firm’s product is -5 and its advertising elasticity of demand is 0.26. Determine the firm’s optimal advertising-to-sales ratio. If the firm’s revenues are 500,000, what is its profit-maximizing level of advertising?The Dolan Corporation, a maker of small engines, determines that in 2012 the demand curve for its product is P = 2,000 - 50Q where P is the price (in dollars) of an engine and Q is the number of engines sold per month. a. To sell 20 engines per month, what price would Dolan have to charge? b. If managers set a price of $500, how many engines will Dolan sell per month? c. What is the price elasticity of demand if price equals $500? d. At what price, if any, will the demand for Dolan’s engines be of unitary elasticity? Only typed answer and don't use chat gpt
- Techvana is the manufacturer of a new drug which they obtained a patent for. The marginal cost of production is $175 per bottle and the elasticity of demand is estimated to be 1.86. What is the optimal price Techvana should charge for a bottle? $94.09 $113.81 $378.49 $325.5 Grizzly Gear manufactures and sells its top tier snowshoes for $1839. Marginal cost of production per pair is $1100 and fixed cost is $362. What is the markup charged on a pair of snowshoes? $1839 $1477 $377 $739Consider two internet service providers: ISP West and ISP East, offering internet access to a small town in north Kansas. They both have some estimations of the price elasticity of the demand facing them: Estimated Price Elasticity for ISP West: -1.25 Estimated Price Elasticity for ISP East:-1.125 They also have some estimations of their marginal cost, as defined by the monthly cost of adding one new unit (e.g., house, office, etc.) to their internet service network: Estimated Marginal Cost for ISP West: $23 Estimated Marginal Cost for ISP East: $30 Assuming that ISP West and ISP East engage in a Cournot duopoly, the profit maximizing price for ISP West is _____ dollars.Estimates of the marginal cost of Daraprim are $100 for a 100-pill bottle. If Turing Pharmaceuticals charged $75,000 per bottle, what is the elasticity of demand that Turing believed it faced?
- The elasticity of demand for a firm’s product is –2.5 and its advertising elasticity of demand is 0.2. a. Determine the firm’s optimal advertising-to-sales ratio. b. If the firm’s revenues are $40,000, what is its profit-maximizing level of advertising?Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She practices a rule-of-thumb for pricing with an “incremental margin percentage” of 70%. i) Find the price she should charge for her smartphones. ii) Using the result in (i), find the implied demand elasticity for her smartphones.The new book, The secrets of the world of Fungi was published as a hardback edition for £20 in March and the paperback edition was published in November for £9.90. What type of pricing is this?