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How is total revenue determinded graphically from the
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- Suppose the typical Buffalo Bills fan has the following demand curve for Bills football games:P= 120-10G where G is the number of games the fans attend.If the Bills want to sell the fan a ticket to all eight home games, what price must they charge?What price should you set for a product? This week we’re learning a useful numerical rule. You’re brought in to consult for a business that currently has a Marginal Cost of $5 for its product. It sells its product to customers for $9 per unit and the estimated price elasticity of demand is -1.5. Is the current price optimal? Should it be raised or lowered? To what? Support your answer using the markup pricing equations from the text. (MR = P*(1+(1/elasticity)) combined with the MR=MC rule).The marginal cost pricing model calculates a markup over marginal costs using estimates of the price elasticity of demand. Will any other pricing strategy result in higher profits?
- If a company successfully advertises its product, do we expect the price elasticity of demand for this firm’s perceived demand curve to increase, decrease, or remain the same?Analyze the demand function for Toyotas in problem C4, page 82. Please also read “What is a Symbol” located in the folder with this assignment. This function is: QT = 200 -.01PT +.005PM -10PG +.01I +.003A Where: QT = quantity purchased PT = average price of Toyotas PM = average price of Mazdas PG = price of gasoline I = per capita income A = dollars spent annually on advertising Characterize this function by circling all in the following list that are applicable: univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1st degree, 3rd degree, additive, multiplicative, linearly homogeneous What is the numerical value of the partial derivative of the function with respect to the price of gasoline (PG) (be sure to also include the + or – sign. Note: I do not want the symbol for this partial derivative)? Write the mathematical symbol representing the coefficient of income (I) (the numerical…suppose the price of a product rises from 10 to 14 dollars and, as a result, the quantity demanded falls from 15 to 5 units. using the market midpoint formula, the absolute value of the elasticity of demand for this product is equal to a.) 2.5 b.) 3 c.) 1 d.) 1/3
- Suppose the price of a product rises from 6 to 10 dollars and, as a result, the quantity demanded falls from 30 to 10 units. Using the midpoint formula, the absolute value of the elasticity of demand for this product is equal to a)5 b)2 c)1/2 d)1The price p (in dollars) and the quantity q sold of a certain product obey the demand Equation : q = 800 - 20p and 0 ≤ p ≤ 40 Express the revenue R as a function of q. What is the revenue if 20 units are sold? What quantity q maximizes revenue? What is the maximum revenue? What price should the company charge to maximize revenue? What price should the company charge to earn at least $3500 in revenue?At a price $12 per unit, Gadgets incorporated is willing to supply 24,000 gadgets, while United Gadgets is willing to supply 16,000 gadgets. If the price were to rise to $15 per unit, their respective quantities supplied would rise to 27,000 and 21,000. If these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets?
- Viking Publishing House observed that in the recent years books on nature conservation and climate change have been very popular. As a matter of fact, Jane Goodall's latest book, "The Book of Hope: A Survival Guide for an Endangered Planet" has been a best-seller and Viking estimates the following demand curve for the book: P = 150 - Q In this equation, P is the price of the book and Q denotes yearly sales in thousands 20,000 books would be expressed as Q = 20 books. In other words, Viking estimates that it incurs a cost of $40 for printing and shipping of each book and pays a $10 royalty to Jane Goodall for each book sold. a. Calculate the profit maximizing OUTPUT and PRICE for this book. Also, calculate the TOTAL PROFITS.What is the Bandwagon effect and Snob effect on market demand behavior.At a price of $8 per unit, Gadgets Incorporated is willing to supply 19,000 gadgets, while United Gadgets is willing to supply 16,000 gadgets. If the price were to rise to $10 per unit, their respective quantities supplied would rise to 28,000 and 22,000. If these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets? Multiple Choice 1.59 1.4 2.22 0.63
