An airline company determines the price of a seat on a particular route between city A and city B to be p = 200 + 0.02n, where p is the airfare price in euro and n is the number of airplane seats sold per day. The travel demand for this route by air has been found to be n = 4700 – 20p a)Determine the equilibrium price charged and the number of seats sold per day, and the resulting revenues of the company.
Q: A college student determines he will have only half of the cost for university housing available for…
A: Different alternatives are available to reduce the cost of university housing.
Q: 1. Use the first four steps of the decision-making process to generally describe the alternatives…
A: A process of making a clear option on what is the best alternative to make a decision is…
Q: The estimated daily demand for river corssings on a proposed new bridge is: Qd = 100,000 - 20,000P…
A: Hey, Thank you for your question.As our prescribed norms we can answer only first 3 sub-parts of a…
Q: The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and has an…
A: PED (Price elasticity of demand) depicts the responsiveness of change in the quantity demanded as a…
Q: (1) A company in Scotland bottles sparkling water. The fixed cost per month to produce bottled water…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Ruth Brennan is evaluating two options. The first option is to open her own legal practice. Based on…
A: Given, The total revenue earned by Ruth Brennan from business = $320,000 Cost of purchases -…
Q: You get a discount on items when you order 500. The price of the item is $10 if you order less than…
A: Economic order quantity is positively related to the annual demand. It means as annual demand rises…
Q: The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase…
A: Incremental returns refers to the returns on investments over the course of investment period. Net…
Q: a management consultant has been asked to calculate and analyze market demand for a new video game…
A: Given: Fixed Cost = $750,000 per year Marginal cost = Variable cost = $20/unit Demand function for…
Q: The Westchester Chamber of Commerce periodically sponsors public service seminars and programs.…
A: Introduction Data has given on different type of media like television, radio and online. a)…
Q: WA waste disposal company is considering getting into bio-disposal business. The incinerators cost…
A: Fixed costs refers to that expenses that do not change depending on how much is produced. Interest…
Q: Wegmans Bakery produces cheesecake for sale. The bakery which operates 5 days per week and 52 weeks…
A: Production means goods that are produced from inputs to output by using raw material in them. It…
Q: Cowboy Metal Cutting produces a laser cut part based on customer orders. The number of units…
A: Meaning of Fixed Cost and Variable Cost: The term fixed cost refers to the situation where the…
Q: Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson…
A: Current Price of Shoes = 4,499.50 Annual Sales = 24 Cost of the Shoes = 3,450.00
Q: A consulting company estimated market demand and supply in a perfectly competitive industry and…
A: Answer: (A) zero
Q: You have been hired as a consultant to advise the Northern Virginia Regional Transportation…
A: The expected total cost of extending the metro from church to Dulles airport is given to be $5…
Q: A consulting company estimated market demand and supply in a perfectly competitive industry and…
A: find the answer below
Q: The A-1 Corporation supplies airplane manufacturers with preformed sheet metal panels that are used…
A: The organization will continue to hire employees to maximize profits as long as the gross benefit of…
Q: A company produces an electronic timing switch that is used in consumer and commercial products. The…
A: a)Total cost = Fixed cost + Variable cost = 70,000+80x MC= dTC/dX= 80 TR = p*d=…
Q: Boise Lumber has decided to enter the lucrative prefabricated housing business. Initially, it plans…
A: Let number of standard model be S. Let number of deluxe model be D. Let number of luxury model be L.…
Q: The one-day return to investors who purchase IPO shares at the IPO offer price are ____, and the…
A: An initial public offering refers to a public offering in which shares of a company are sold to…
Q: The demand function for a manufacturer's product is D = 70-5p , where D is the number of units and…
A: Revenue maximisation is a strategic goal of a company that aims to offer at a rate that maximizes…
Q: Tim's Tires sells tires under the firm's own brand name and private label tires to discount stores.…
A:
Q: The list price is $671 and the net price is $543. What is the trade discount rate?
A: Discount rate = (List price - Net price) / List price
Q: Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson…
A: Current Price of Shoes = 4,499.50 Annual Sales = 24 Cost of the Shoes = 3,450.00
Q: Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering…
A: Given information V=1000-20P+(1000/P) Total cost=15000+4V
Q: s an MNE that manufactures inexpensive shoes. Quantum outsources portions of its production to…
A: The exploitation of a child through any form of work that leads to interfering with attending…
Q: A company operating under a continuous review system has an average demand of 50 units per week for…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: The demand values for the following 4 weeks for a company is as follows: 300, 200, 400, 430. The…
A: Given The demand values for the following 4 weeks for a company is as follows: 300, 200, 400,430.…
Q: Lutfi was accepted at three different graduate schools, and must choose one. Elite U costs $50,000…
A: The economic Surplus for three graduate schools can be calculated as follows:
Q: Assume that the respective demand and supply functions for a product are Q = 50 – 0.5P; and Q = -Pt…
A: To find the time path of Pt we will firstly find a particular condition and then a complimentary…
Q: Hasbro is considering selling a new game called Oligopoly, which will introduce children (ages 5 to…
A: Market information: - 2 millions potential customers - If one seller operates in the market, he…
Q: Global passenger traffic demand was down by 58.4 per cent over pre-pandemic 2019 levels with the…
A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…
Q: Rho Merchandising supplies T-shirts to AK Mart. Currently, Rho orders T-shirts from various…
A: Ordering cost can be calculated by using the following formula.
Q: The current fleet size of BlueSG in Singapore is 667 cars. With your proposed new pricing structure,…
A: Price elasticity of demand refers to the percentage change in demand due to a percentage change in…
Q: All of the following would be considered in evaluating product or sales mix allocations, except
A: When several products are sold by a company, the management will be interested in finding out…
Q: Global passenger traffic demand was down by 58.4 per cent over pre-pandemic 2019 levels with the…
A: The airline industry's supply side factors, which include factors such as frequency of service, seat…
Q: The A-1 Corporation supplies airplane manufacturers with preformed sheet metal panels that are used…
A: Marginal Product of labor:- Whenever an extra unit of labour (throughout many situations, one new…
Q: APL has an overall cost of capital of 11.6 percent and a beta of 1.31. The firm is contemplating a…
A: Bank rate, also known as discount rate in American English, is the rate of interest which a central…
Q: Redstone Clayworks, Inc. is located in Sedona, Arizona and manufactures clay fire pits for patios.…
A: The point of intersection between the market demand and market supply is the equilibrium price where…
Q: Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson…
A: Given Price = 4,499.50 Annual Sale = 24 Cost of shoes = 3,540.00
Q: Tim's Tires sells tires under the firm's own brand name and private label tires to discount stores.…
A: A monopoly is market where there is a single seller and a large number of buyers. The monopolist…
Q: Ruth Brennan is evaluating two options. The first option is to open her own legal practice. Based on…
A: Calculation of Accounting Profit of Ruth Brennan Accounting profit is a company's total earnings as…
Q: An internal study at Mimeo Corporation—a manufacturer of low-end photocopiers— revealed that each of…
A: Three photocopiers per hour is paid $6 for each, thus, $18 (3x6) is the initial payment per hour for…
Q: Given this information what price should Medicare pay for a PSCK9? Should a state Medicaid program…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson…
A: Current Price of Shoes = 4,499.50 Annual Sales = 24 Cost of the Shoes = 3,450.00
Q: A local college is deciding whether to conduct a campus beautification initiative that would involve…
A: Cost-benefit-analysis is the method used to measure the advantages of a decision or taking action…
An airline company determines the
p = 200 + 0.02n,
where p is the airfare price in euro and n is the number of airplane seats sold per day.
The travel
n = 4700 – 20p
a)Determine the
Step by step
Solved in 2 steps
- Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is −3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places.You have been hired as an economic consultant to assess the feasibility of building a new hockey arena in the city of Saskatoon. The demand curve for attendance at the new arena per game is given by P = 100 – 0.005Q and average attendance per game (35 home games) is optimistically forecast to be 12,000; the demand curve for other entertainment goods which are thought to be substitutes for basketball games is given by P = 1500 – 0.01Q and an estimated total of 100,000 tickets per year are sold for these events. Per capita income in Saskatoon is currently estimated to be $40,000 per year, which is forecast to rise to $40,100 after stadium construction is completed (local population = 600,000). The income multiplier is thought to be 1.2. Construction costs for the new arena are budgeted to total $175 million with annual arena maintenance costs of $5 million. The city will pay for the annual maintenance costs for the first three years of arena operations. The market rate of interest is 2%.…Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson shoe model, taking into account the purchases of socks and insoles. The current price of the Clarkson shoes is P4,499.50 per pair, the related annual sales of which is 24 pairs. The cost of the shoes is estimated at P3,450.00. The elasticity of demand for the shoes is estimated at -2.9 and assumed to be constant within a relevant price range. Every purchase of a pair of the Clarkson model leads to an average of 2 pairs of socks and 1 pair of insole being sold. The socks and insoles contribute P95, and P70, respectively. What is the profit-maximizing price for the pair of shoes? (Note: Ignore the currency sign and commas. Your answer should be up to two decimal places only.) Answer:
- Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson shoe model, taking into account the purchases of socks and insoles. The current price of the Clarkson shoes is P4,499.50 per pair, the related annual sales of which is 24 pairs. The cost of the shoes is estimated at P3,450.00. The elasticity of demand for the shoes is estimated at -2.9 and assumed to be constant within a relevant price range. Every purchase of a pair of the Clarkson model leads to an average of 2 pairs of socks and 1 pair of insole being sold. The socks and insoles contribute P95, and P70, respectively. What is the profit-maximizing price for the pair of shoes?Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson shoe model, taking into account the purchases of socks and insoles. The current price of the Clarkson shoes is P4,499.50 per pair, the related annual sales of which is 24 pairs. The cost of the shoes is estimated at P3,450.00. The elasticity of demand for the shoes is estimated at -2.9 and assumed to be constant within a relevant price range. Every purchase of a pair of the Clarkson model leads to an average of 2 pairs of socks and 1 pair of insole being sold. The socks and insoles contribute P95, and P70, respectively. What is the expected profit from the shoes only?Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson shoe model, taking into account the purchases of socks and insoles. The current price of the Clarkson shoes is P4,499.50 per pair, the related annual sales of which is 24 pairs. The cost of the shoes is estimated at P3,450.00. The elasticity of demand for the shoes is estimated at -2.9 and assumed to be constant within a relevant price range. Every purchase of a pair of the Clarkson model leads to an average of 2 pairs of socks and 1 pair of insole being sold. The socks and insoles contribute P95, and P70, respectively. What is the expected profit from the complementary products? (Note: Ignore currency symbol and comma. Round your answer to the nearest ones.)
- A firm produces two goods, A and B. Due to the product A’s fall in popularity near the end of last year, the estimated demand (units purchased) for A is 25% less than that of B. The selling price per unit is $30 for A and $20 for B. If the revenue target is $85,000 this year, how much of each of the two goods must be sold? (Round to whole number if necessary). The monthly demand for trotro rides in Kumasi, Ashanti depends on the price of a taxi ride, the price of a trotro ride, and the average monthly income of riders. Some consumers might choose to ride the taxi instead of the trotro, while other riders might use both forms of transportation to get to their final destination. The demand function for trotro rides is: Qd = 9,750 – 500P + 250Pj + 5INCOME, where Qd is the number of trotro rides demanded per month, P is the price of a ride, Pj is the price of a taxi ride, and INCOME is the average monthly income of riders. Suppose that P = $1.50, Pj = $4, and INCOME = $3,000. What is the monthly quantity of trotro rides demanded? What is the value of the cross-price elasticity of demand? Based on your answer, are taxi rides and trotro rides substitutes or complements? What is the value of the income elasticity of demand? Based on your answer, are taxi rides an inferior or a normal good?Is the following statement true or false: “Customers prefer product A more than product B if the customer value of product A is less than the customer value of product B." Group of answer choices False True
- A firm has an annual demand of S units for a good whose purchase cost is £c per unit. Each order costs £a to place, and the cost of holding stock is b% of the average value of stock per annum. Determine the optimal order quantity. A local firm uses 2000 units of a particular component each year. The component has a purchase price of £4/unit, while the cost of holding stock is estimated at 20% of the average stock value. If the cost of placing each order is £12.50, find the optimal number of orders placed each year. Suppose the component supplier offers a discount of 2% on the purchase price if orders are placed in units of 1000. Is the discount worth accepting? Suppose that instead of a single figure you had been given a probability distribution for the number of units used each year. Indicate the effect on stock policy.. Please explain fully , the last part is also important to solve.The A-1 Corporation supplies airplane manufacturers with preformed sheet metal panels that are used on the exterior of aircraft. Manufacturing these panels requires only five sheet metal–forming machines, which cost $500 each, and workers. These workers can be hired on an as-needed basis in the labor market at $9,000 each. Given the simplicity of the manufacturing process, the preformed sheet metal panel market is highly competitive. Therefore, the market price for one of A-1’s panels is $80. Based on the production data in the accompanying table, how many workers should A-1 hire to maximize its profits?A local restaurateur who had been running a profitable business for many years recently purchased a three-way liquor license. This license gives the owner the legal right to sell beer, wine, and spirits in her restaurant. The cost of obtaining the three-way license was about $90,000, since only 300 such licenses are issued by the state. While the license is transferable, only $75,000 is refundable if the owner chooses not to use the license. After selling alcoholic beverages for about one year, the restaurateur came to the realization that she was losing dinner customers and that her profitable restaurant was turning into a noisy, unprofitable bar. Subsequently, she spent about $8,000 placing advertisements in various newspapers and restaurant magazines across the state offering to sell the license for $80,000. After a long wait, she finally received one offer to purchase her license for $77,000. What is your opinion of the restaurateur’s decisions? Would you recommend that she accept…