Q: At what Price should All Firms Produce at? What does Price Elasticity of Demand Measure?
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A: Given Information Q = 40 + 2p Let say p = 2 Then the Q = 40 + 2 x 2 = 44
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A: Demand Function: P = 40 – 1.5q TC=q2+10q+50
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A: Marginal cost of the seat=$14 Market demand is Q=315-2P
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Q: = 20 122. The following demand function is given: q = 70 – 1,5p Calculate the point elasticity of…
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- For a firm with a downward-sloping demand curve, which of the following is true at the profit-maximizing level of output? For this case, let's assume that marginal costs are positive.a) demand is perfectly inelastic b) demand is inelastic but not perfectly inelastic c) demand is unit-elastic d) demand is elastic but not perfectly elastice) demand is perfectly elasticSuppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is -1.25. Then we know that: demand is inelastic. marginal revenue is $2. marginal revenue is $50. demand is unit elastic.The demand function of dog breeders for electric dog polishers is qb = max{200−p, 0}, and the demand function of pet owners for electric dog polishers is qo = max{90 − 4p, 0}. (a) At price 150, what is the price elasticity of dog breeders’ demand for electric dog polishers? (it's a negative number) (b) At price 15, what is the price elasticity of pet owner’ demand for electric dog polishers? (it's a negative number) (c) Find a nonzero price at which there is positive total demand for dog polishers and at which there is a kink in the demand curve. $_____. What is the market demand function for prices below the kink. What is the market demand function for prices above the kink? ______ + P
- Show the relationship between the elasticity of demand for a firm’s product and its marginal revenue.Firms should choose to produce on the inelastic portion of the demand to further increase its market power. Do you agree or disagree. Explain your answer.The ability of firms to enter and exit a market over time means that,in the long run.a.the demand curve is more elastic.b.the demand curve is less elasticc.the supply curve is more elasticd.the supply curve is less elastic
- Determine the profit-maximizing prices when a firm faces two markets where the inverse demand curves are Market A: p =80−2Qa, where demand is less elastic, and Market B: p=60−1Qb, where demand is more elastic, and Marginal Cost = m =40Reid has determined that the daily demand for doughnuts at his favorite bakery is described by the following equation: Qd = 3,300 - 3000P where Qd is the daily quantity demanded in number of doughnuts and P is the price per doughnuts in dollars. a. What is the point price elasticity of demand at a price of $0.70? b. Assume the price is currently $0.70. What is the marginal revenue obtained by selling one additional doughnut? c. The marginal cost of producing an additional doughnut is $0.10. What price should the bakery establish in order to maximize profits?Suppose the Demand for baseballs is given by Q=120 - 4P. a) What is the price elasticity of demand when P=102 b) At what price will Total Revenue be maximized? c) What is the firm's Marginal Revenue when the price is $12?
- Total revenue from the sale of X is given by the equation R=100Q-2Q2. Calculate the value of of marginal revenue when the point price elasticity of demand when marginal revenue=20.Consider a competitive industry with a perfectly elastic supply curve given by p = 20. The demand curve facing this industry is p(q) = 60-q. Find the per-unit tax that will maximize tax revenue to the government.Which of the following statements about the relationship between marginal revenue, price, and the price elasticity of demand, is true? a) At the midpoint of a linear demand curve, the value of price elasticity of demand is zero. b) With a perfectly elastic demand curve, whatever output the firm produces, the marginal revenue is always greater than the market price. c) If the price elasticity of demand PED = -1 at all points on a demand curve, then the firm can choose any level of output, and earn the same revenue. d) If a firm has inelastic demand, then the marginal revenue curve will be upward sloping.