Determine the profit-maximizing LOADING... prices when a firm faces two markets where the inverse demand curves are Market A: pA=120−2QA, where demand is less elastic, and Market B: pB=80−0.5QB, where demand is more elastic, and Marginal Cost=m=20 for both markets. Part 2 For Market A: pA=$enter your response here. (Round your response to two decimal places.) Part 3 For Market B: pB=$enter your response here.
Q: How does governance affect the development of a country?
A: Normally, there are 3 different kinds of growth that take place in an economy. These are growth,…
Q: Chuck and Diane are both currently consuming 15 apples and 3 bananas each week, which we can call…
A: In financial matters, the marginal rate of substitution (MRS) is the rate at which a buyer can…
Q: Why did costs for shipping containers increase so sharply during the pandemic? Check all that apply.…
A: Solution: The coronavirus pandemic caused a disruption in the supply chains and it lead to shortages…
Q: The following graph shows the daily market for wine. Suppose the government institutes a tax of…
A: Supply and demand, in economics, is the connection between the quantity of a commodity that…
Q: Suppose an apartment complex converts to a condominium (i.e., the renters become owners of their…
A: GDP (gross domestic product) of a country is the market value of all final commodities and services…
Q: Question 1 The below graph plots the daily prices of Gold over time. a) Examine the plot and…
A: Economists use current data from a nation (or a set of nations) to predict the economic activity of…
Q: Regulated firms Select one: Have less incentive than competitive firms to reduce costs All of the…
A: In the free market, the equilibrium price is determined by the forces of demabd and supply curve.…
Q: The growth rate of real GDP in the United States rises from 4.2% to 4.4%. Explain and calculate how…
A: It has been given to us that the growth rate of real GDP has increased from 4.2% to 4.4% We have to…
Q: A cash-starved town decides to impose a $6 excise tax on T-shirts sold. The following table shows…
A: The only price at which consumer and producer plans coincide is the equilibrium price, which is…
Q: During the Summer of 2022, gas prices rose well over $5.00 per gallon. In response, President Biden…
A: An excise tax causes the supply curve to shift upward by the amount of the tax. Incidence of the tax…
Q: Susle knows that too many sugary treats, while delicious when eaten, have long-term adverse effects…
A: Behavioral economics combines elements of economics and psychology to comprehend how and why…
Q: If the Canadian dollar is strengthening, then: it has been unpegged from other currencies. O it has…
A: The exchange rate in international trade is referred to as the price at which one country's currency…
Q: According to GATT, regional trade agreements: Cannot be formed Can be formed only as free-trade…
A: The GATT was established to develop regulations aimed at eliminating or restricting the most…
Q: True/False: Net exports = exports plus imports. True/False: The estimated market value of volunteer…
A: We know that Export can be defined as the total amount of commodities and services sold outside the…
Q: The so-called Lake Wobegon effect, where everyone in a group claims to be above average, illustrates…
A: In case of Lake Wobegon Effect, a person has the tendency to consider himself as superior to others.…
Q: QUESTION 12 Foreign direct investment is the term used to describe purchases of firms in another…
A: An ownership position in a foreign firm or project is known as a foreign direct investment (FDI) and…
Q: Consider a smopec in the market for bread. The domestic equilibrium price without trade would be…
A: Equilibrium is the state wherein market supply and demand balance one another, and accordingly,…
Q: 3 What is the total price of a boat with an original price of $12773, if it is sold at a 20%…
A:
Q: How does the equilibrium price and quantity change when here are bad rumors about a product? Are…
A: Demand refers to the quantity of the commodity which the consumers demand at various prices in the…
Q: The amount of the tax per unit is $ Buyers pay $ Sellers pay $ of the tax per unit. of the tax per…
A: Buyer pay of tax per unit is = Price paid after tax - price paid before tax Seller pay of tax per…
Q: 7. Use the following graph to answer questions a-f. a. What area represents consumer surplus before…
A: Consumer surplus is the difference between consumer willingness to pay and market price whereas…
Q: What is an externality?
A: Environmental externalities that have societal consequences include pollution. They happen whenever…
Q: Stealth bank holds deposits of $700 million. It holds reserves of $35 million and government bonds…
A: Bank Assets and Liabilities The balance sheet of a bank consists of two sides: (1) assets and (2)…
Q: The indirect exchange rate is $0.15 / ¥1. Then the direct exchange rate is O *0.15 / $1 O $6.67 / 1…
A: given that, the indirect exchange rate is $0.15 /¥1
Q: Using a two-period consumer model, explain how the household achieves the highest level of…
A: Under the 2 period consumer model household consumes in two periods where C1 is his consumption in…
Q: Total population 20,000 Working-age population 15,000 Employment…
A: The labor force participation rate is an estimate of an economy's active workforce.
Q: Elasticity - Example in class. P = 1.20, Q* = 4200. Move to P=1.60, Qd=3400, Qs=5000. What is the…
A:
Q: Review the graph at right for a monopoly market (enter all of your responses as whole numbers). How…
A: In Economics, the Market refers to the place where buyers and sellers intersect with each other and…
Q: Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer…
A: Utility : U=2C+3P We will try to prove each statement correct/ incorrect step by step: Option A…
Q: please answer the question below as long as you can because this is an essay question. Define and…
A: The ratio of the percentage change in quantity demanded of a product to the percentage change in…
Q: Question 35- 100 80 30 What is the deadweight loss of monopoly? 1275 1125 1500 O1000
A: Monopoly is where the only single firm exists. There will always be a deadweight loss in case of…
Q: Huang is determining how much Coke and Pepsi he will buy. Use the information in italics to answer…
A: Utility function shows the relationship between units of goods and utility derived from the goods.
Q: Price per unit $ 50 100 150 200 250 300 Quantity demanded each year 13,200 12,800 12,400 12,000…
A: Equilibrium is a situation in the market when there is no surplus no shortage
Q: Define what the Transportation Services Index (TSI) is. Then explain why the Freight TSI is…
A: Trade is defined as the exchange of commodities and services across the boundary of the country.…
Q: ring to the Comparative Advantage Theory, in Figure 2 which product should specialized in? Which…
A: Comparative advantage is the situation at which a country has ability to produce a good at lower…
Q: The government wants to encourage consumer spending through cutting income taxes. This is an example…
A: Introduction We have two types of markets: the goods market and the money market. The goods market…
Q: What do we consider a shock in global business? O Development of a new technology that is an…
A: A Shock refers to an unexpected or non-predictable event that affects an economy, either positively…
Q: I have answer but do not know parts e as well as others please teach explain step by step, A…
A: Here we are given consumer preference by a quasi linear utility function as: U(x1,x2) = x1 +2 x2…
Q: You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing.…
A:
Q: The PPF bows outward because as we move from point A to point B to point C, the opportunity cost of…
A: Opportunity cost refers to the next best alternative forgone.
Q: Using a 15% MARR, $10,000 is equivalent to all of the following except: O a. $8,696 one year ago O…
A: To solve this question, we have to calculate the equivalent value of $10,000 one year ago, two year…
Q: When marginal-cost curve lies: a. above the ATC curve, ATC rises b. above the AVC curve, ATC rises…
A: When talking about the relationship between MC, ATC, and TFC, it can be said that there is a…
Q: The price of a Universal Testing Machine doubles in 15 years. What is the compounded yearly interest…
A: Given that, Principal (P): $1000(let assumed) Total P+I (A): $2,000(let assumed) Time (t in…
Q: please teach explain step by step, A consumer has preferences over two goods represented by the…
A: Utility function : U = x1 + 2 (x2)0.5 Optimal consumption point is achieved at the point where…
Q: Classify the following as microeconomics or macroeconomics and provide a justification for your…
A: Introduction Microeconomics deals with small economic activities. It deals with the behavior of…
Q: A good example of an oligopoly would be...
A: Oligopoly is used to portray a particular kind of serious climate. "Oligopoly" comes from the…
Q: Blake eats two bags of generic potato chips each day, and does not purchase any name-brand chips.…
A: Income elasticity of demand measures the responsiveness of quantity demanded with respect to change…
Q: On the following graph, AD₁ represents the initial aggregate demand curve in a hypothetical economy,…
A: Here, the given graph shows aggregate demand curves and aggregate supply curves of an economy with…
Q: Rhea is determining how many gallons of milk (M) and loaves of bread (B) to purchase. Use the…
A: Utility refers to the satisfaction attained by the consumers from the consuming the goods and…
Q: Which one of the following is the best example of someone acting according to the assumptions of the…
A: The neoclassical model, which is based on labour, capital, and technology, describes continuous…
Part 2
Part 3
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Your manager is only concerned with selling her product for the highest price possible under profit- maximizing conditions. In which of the two markets should she operate? • Market 1: - Demand:Q=100-2P - MarginalCost:MC=15 • Market 2: - Own-PriceElasticity:εQ,P=-2.5Note:Thisimpliestheown-priceelasticityis constant at all points. - MarginalCost:MC=15 a. She should operate in Market 1, as it has the highest profit-maximizing price. b. She should operate in Market 2, as it has the highest profit-maximizing price. c. She is indifferent, as each market has an equal profit-maximizing price.Assuming you are the managing director of a firm that produces three goods: A, Band C. The price elasticity of demand for A is 1.2, for B it is 1.00 and for C it is 0.75.It is known that he firm is experiencing serious cash flow problems and you have toincrease total revenue as soon as possible. If you were in a position to set the pricesfor these goods, what would be your pricing strategy for each productSuppose the own price elasticity of market demand for retail gasoline is -0.9, the Rothschild index is 0.6, and atypical gasoline retailer enjoys sales of $1, 200, 000annually. What is the price elasticity of demand for arepresentative gasoline retailer's product? Instruction:Enter your response rounded to two decimal places. Ifentering a negative number, be sure to use thenegative (-) sign.
- Assume that a firm accepts the following price_demand relationship as being a realistic representation of its market: d=800-10p where p must be between $20 and$70 a. How many units can the firm sell at the $20 per-unit price? At the $70 per-unit price? b. By how many units does a $1 increase decrease demand? c. Which pricing alternative the business is considering maximizes revenue? Group of answer choices $40 $30 $50Answer within 45min please Suppose that Andrew’s Hotel will be open for only two days: a peak season day and anoff-peak day. Andrew has two types of costs: room construction costs and guest service costs. Thecost of servicing any guest is 50 dollars. The cost of building a room is 400 dollars, but rooms canbe used for both types of day. Inverse demand for peak days is P = 1000 −Q, and demand foroff-peak is P = 500 −2Q.What prices should Andrew, who is looking to maximize his profits, set, and how many roomsshould he build?Suppose you are the economic adviser ofa company producing three brands of mobile pnones;Nokia 10, Samsung X and iPhone 7. Suppose further that, your company currently sells 120units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units ofNokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing directorproposes an increase in price of Samsung X from e800 to e1000 per unit for which quantitydemanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e 1200 per unitfor which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 unitsUsing the mid-polint formula. compute the price elasticity of demand for each brand.From your answer in i, what is the type and economic interpretatiom of each brand'sii.value of elasticity.
- b) The manager could have charged Joe a single price per round. How much extra profit does theclub earn by using two-part pricing?c) Joe marries Susan, who is also an enthusiastic golfer. Susan wants to join the Northlands Club.The manager believes that Susan’s inverse demand function is ? = 100 − 2?. The manager has apolicy of offering each member of a married couple the same two-part prices, so he offers themboth a new deal. What two-part pricing deal maximizes the club’s profit?d) Will this new pricing have a higher or lower access fee and per-unit fee than in Joe’s originaldeal? How much more would the club make if it charged Susan and Joe separate prices?Suppose a firm has the following demand equation: Q(P) = 100 - 30P + 4A Where Q(P) = quantity demanded at the market price P P = product price (in S) A = advertising spending (in $) Assume for the following questions that initial values of P = $2.00 and A = $1.5,000 No 1--- Suppose the firm dropped the price to $2.60. Would this be beneficial. Explain. (Hint: investigating the link between revenue and price elasticity of demand is the best approach -for this question.) No 2--- Supposed the firm raised the price to $5.00 while increasing its advertising expenditure by $200. Would this be beneficial? REQUIRED 2B: a--- Construct the demand schedules (in a table) of Q, P and A (before and after the increase in advertising spending) -using Excel (detailed steps are optional b----Graph the demand curves (before and after the increasing in advertising spending) -using Excel (details of steps are required. no chatgpt or any ai tool and should be in excel with details of formulaAssume that you are in an interview session and the panel asks you to give a pricing decision that will maximize company’s interest (revenue maximization). Price Qd Qs 10 80 20 11 75 30 12 70 40 13 65 50 14 60 60 15 55 70 16 50 80 This is demand and supply schedule, estimate the equations, calculate the elasticity, and justify your positions based on your calculations. Based on your demand equation, what price will maximize the revenue and what would be the elasticity at the revenue maximization point.
- Ll.47. Market demand is given as Qd = 750 – 2P. Market supply is given as Qs = 3P - 15. What is the point elasticity of demand at the equilibrium price, and if the firm could change its price, would the firm increase or decrease the price in order to increase total revenue? a. 5.80, the firm will decrease the price b. 0.69, the firm will decrease the price c. 0.69, the firm will increase the price d. 5.80, thePlease no written by hand solution Instead of assuming a linear demand curve, suppose we assume that demand is char- acterized by the following demand function qD = 13.572P −1.5 (a) Suppose the current price is $5. What is the price elasticity of demand at this price? (b) Over what range of prices is demand elastic? Inelastic? Unit elastic?Continuing your analysis of the competitive US manufacturing industry from Question 1, withdemand of Qd = 500 – 8P and supply of Qs = 4P – 100, suppose a technological innovationcauses the supply curve to increase, shifting the curve down by $15 for every given quantity Q. Determine the new supply equation. Solve for equilibrium price P2 and quantity Q2. Depict the original supply S1, the new supply S2, and the original demand D1 on theusual P, Q diagram. Label all intercepts (including two intercepts for the demand curveand one intercept for the supply curve). Clearly indicate and label the new marketequilibrium. Graphically indicate the areas of Consumer Surplus (CS2) and Producer Surplus (PS2)that resulted from the new market equilibrium. Compute the values of Consumer Surplus (CS2) and Producer Surplus (PS2) associatedwith the new market equilibrium, clearly indicating the units that CS and PS aremeasured in. Who has benefited from technological innovation, based on the…