Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She practices a rule-of-thumb for pricing with an “incremental margin percentage" of 70%. i. ii. Find the price she should charge for her smartphones. Using the result in (i), find the implied demand elasticity for her smartphones.
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- The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomacs closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $450. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. What is the arc cross elasticity of demand between Potomacs oven and the competitive Spring City model? Would you say that these two firms are very dose competitors? What other factors could have influenced the observed relationship? If Potomac knows that the arc price elasticity of demand for its ovens is 3.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She practices a rule-of-thumb for pricing with an “incremental margin percentage” of 70%. i) Find the price she should charge for her smartphones. ii) Using the result in (i), find the implied demand elasticity for her smartphones.For the Minnie Mice Company, the elasticity of demand is −6 and the profit-maximizing price is 30. If MC is marginal cost and AVC is average variable cost, then: Group of answer choices MC = 25 AVC = 25 MC = 30 AVC = 36 MC = 36 Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- In order for a firm to engage in price discrimi- nation, it must be Group of answer choices a. experiencing constant marginal cost b. a price taker c. producing in the inelastic portion of its demand curve to raise its price and increase total revenue d. experiencing economies of scale in the relevant range of production e. able to separate consumers into different groups based on demand elasticitiesSuppose Maruti has the following demand and supply function for Cultus VXL: Qd = 55 - 5P Qs = -50 + 10P Find out the equilibrium price and quantity ?Generally, firm demand within an industry is:A. Likely to have greater price elasticity than the industry demand as a wholeB. Likely to have less price elasticity than the industry as a demand wholeC. Not relevant to industry demandD. None of the above
- You would like to control the total consumption of soft drink up to 100 bottles per year. The current two brands you drink are Pepsi and Coke. The current demand, price, elasticity, and minimum demand for Pepsi and Coke are given in below. In addition, you would like to keep equal or more demand from Pepsi due to brand loyalty. Assuming linear demand curves, what are the best price for Pepsi and Coke that can minimize your total payment? Elasticity Current price Demand Minimum demand Keep Pepsi income > = 60% of total payment Pepsi 2 2 300 20 Coke 1 3.5 220 25Consider two internet service providers: ISP West and ISP East, offering internet access to a small town in north Kansas. They both have some estimations of the price elasticity of the demand facing them: Estimated Price Elasticity for ISP West: -1.25 Estimated Price Elasticity for ISP East:-1.125 They also have some estimations of their marginal cost, as defined by the monthly cost of adding one new unit (e.g., house, office, etc.) to their internet service network: Estimated Marginal Cost for ISP West: $23 Estimated Marginal Cost for ISP East: $30 Assuming that ISP West and ISP East engage in a Cournot duopoly, the profit maximizing price for ISP West is _____ dollars.The Dolan Corporation, a maker of small engines, determines that in 2012 the demand curve for its product is P = 2,000 - 50Q where P is the price (in dollars) of an engine and Q is the number of engines sold per month. a. To sell 20 engines per month, what price would Dolan have to charge? b. If managers set a price of $500, how many engines will Dolan sell per month? c. What is the price elasticity of demand if price equals $500? d. At what price, if any, will the demand for Dolan’s engines be of unitary elasticity? Only typed answer and don't use chat gpt
- own price elasticity of market demand for retail gasoline is -0.8,the Rothschild index is 0.5, and a typical gasoline retailer enjoys sales of$1.5 million annually. What is the price elasticity of demand for a representative gasoline retailer's product?Please Help The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.10 and is 1.60 other days of the year. If Rosie's Roses faces a constant marginal cost of $0.75 per rose, what is the profit-maximizing off-peak load price to charge on days not on the week of Valentine's Day? 1)$5.00 2)$1.25 3)$8.50 4)$2.00 If Happy Campers has a market share of 70 percent and Campers R Us has a market share of 5 percent, according to Chinese law, Happy Campers ________ be considered a dominant firm and Campers R Us ________ be considered a dominant firm. 1)would; would 2)would not; would not 3)would not; would 4)would; would not If an illegal per se act has been proven to have occurred, there is no defense possible. 1)True 2)False A manager of a firm located in the United States that sells some of its products abroad needs to comply only with United States antitrust law as the firm is only bound by the laws of the country in which it is located. 1)True 2)False…Demand for Corn Flakes is: P = 17 - Q. Supply of Kellogg's Corn Flakes is: P = 2 + Q. Now a generic company enters the market, selling generic Corn Flakes for $5. Assume consumers are indifferent between generic and Kellogg's Corn Flakes. How many boxes of corn flakes will sell in total (both brand and generic)? Enter as a value.