Suppose a firm sells two goods, Good A and Good B. Use the following information to Calculate the mark-up and the profit-maximizing price that the firm should change for Good B. Profit maximizing price of Good A = $6000 MC at profit-maximizing level of output of Good A = $1200 MC at profit-maximizing level of output of Good B = $400 Total revenue of Good A = $80000 Total revenue of Good B = $68000 Rothschild index of Good B = 0.6 Price elasticity of the market demand for Good B = -1.2
Suppose a firm sells two goods, Good A and Good B. Use the following information to Calculate the mark-up and the profit-maximizing price that the firm should change for Good B. Profit maximizing price of Good A = $6000 MC at profit-maximizing level of output of Good A = $1200 MC at profit-maximizing level of output of Good B = $400 Total revenue of Good A = $80000 Total revenue of Good B = $68000 Rothschild index of Good B = 0.6 Price elasticity of the market demand for Good B = -1.2
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 9SQ
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Suppose a firm sells two goods, Good A and Good B. Use the following information to Calculate the mark-up and the profit-maximizing price that the firm should change for Good B.
Profit maximizing price of Good A = $6000
MC at profit-maximizing level of output of Good A = $1200
MC at profit-maximizing level of output of Good B = $400
Total revenue of Good A = $80000
Total revenue of Good B = $68000
Rothschild index of Good B = 0.6
Price elasticity of the market demand for Good B = -1.2
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