Table 2 shows Media Cable’s demand table, total revenue, and marginal revenue at each price. What is the price effect of reducing the price from $100 to $80? Table 2 Price Amount Demanded Total Revenue Marginal Revenue $160 0 $0 n/a $130 90 $11,700 $130.00 $100 200 $20,000 $75.45 $80 350 $28,000 $53.33 $40 600 $24,000 -$16.00 $0 850 $0 -$96.00 Question 5 options: a) $4,000 b) -$20,000 c) $28,000 d) -$4,000 e) $12,000
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Table 2 shows Media Cable’s demand table, total revenue, and marginal revenue at each
Table 2
Price |
Amount Demanded |
Total Revenue |
Marginal Revenue |
$160 |
0 |
$0 |
n/a |
$130 |
90 |
$11,700 |
$130.00 |
$100 |
200 |
$20,000 |
$75.45 |
$80 |
350 |
$28,000 |
$53.33 |
$40 |
600 |
$24,000 |
-$16.00 |
$0 |
850 |
$0 |
-$96.00 |
Question 5 options:
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When price of good decreases, quantity demanded increases. Decrease in price has negative effect on total revenue and increase in quantity has positive effect on total revenue.
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- Table 2 Shows Media Cable’s demand table, total revenue, and marginal revenue at each price. Why, at any price lower than $130, is the marginal revenue from an additional sale less than the price? Table 2 Price Amount Demanded Total Revenue Marginal Revenue $160 0 $0 n/a $130 90 $11,700 $130.00 $100 200 $20,000 $75.45 $80 350 $28,000 $53.33 $40 600 $24,000 -$16.00 $0 850 $0 -$96.00 Question 1 options: a) Lowering the price means that Media Cable lowers the price on all cable packages sold, and the combination of the price effect and quantity effect work together to reduce the Marginal Revenue. b) Marginal revenue is calculated by dividing the change in quantity into the change in Total Revenue. c) The price effect tends to increase Total Revenue. d) The quantity effect tends to decrease Total Revenue. e) It cost less to provide a service in…Table 2 shows Media Cable’s demand table, total revenue, and marginal revenue at each price. What is the quantity effect of reducing the price from $100 to $80? Table 2 Price Amount Demanded Total Revenue Marginal Revenue $160 0 $0 n/a $130 90 $11,700 $130.00 $100 200 $20,000 $75.45 $80 350 $28,000 $53.33 $40 600 $24,000 -$16.00 $0 850 $0 -$96.00 Question 4 options: a) $4,000 b) -$20,000 c) $28,000 d) -$4,000 e) $12,000For problems 1 – 4: The Dolan Corporation, a maker of small engines, determines that in 2019 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. To sell 30 engines per month, what price would Dolan have to charge? A.4500 b.1000 c.500 d.450
- Given Question #1 Cost function C= 3000+6Q Q = 4400 - 200Q Q= 1600 P = 14 Profit= 22400-12600 = 9800 Question #2 Q=$480 - Laredo Q=$1120 - SA Question #3 Ed=−1.25 - Laredo Ed=−0.55 - SA 0.5<0.8− markup index it is charging less. - Laredo 0.64<-1/-0.55--markup index it is charging less. - SA Please answer question number #4 (A-C) For Laredo onlyGiven Question #1 Cost function C= 3000+6Q Q = 4400 - 200Q Q= 1600 P = 14 Profit= 22400-12600 = 9800 Question #2 Q=$480 - Laredo Q=$1120 - SA Question #3 Ed=−1.25 - Laredo Ed=−0.55 - SA 0.5<0.8− markup index it is charging less. - Laredo 0.64<-1/-0.55--markup index it is charging less. - SA Please answer question number #4 A-CA publisher faces the following demand schedule for the next novel from one of its popular authors:Price Quantity Demanded100 090 100,00080 200,00070 300,00060 400,00050 500,00040 600,000 530 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishing the book is aconstant $30 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity would a profitmaximizing publisher choose? What price would it charge? b. Compute marginal revenue. (Recall that MR=∆TR/∆Q.) How does marginal revenue compare tothe price? Explain. c. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantity do themarginal-revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author was paid $3 million instead of $2 million to write the book, how would this affectthe publisher’s decision regarding the price…
- A) Some industries have found that the best way to bring their product to market is via a two sided market, where advertisers form the other side of the market. Why will there still be a deadweight loss in this kind of market, and what ways could the firms in the industry behave to reduce the deadweight loss?B) Show with a diagram why first degree price discrimination eliminates the deadweight loss in general.C) What three conditions have to be satisfied before a company can engage in price discriminationTable 9.2 Price ($) Quantity Demanded 50 2 40 3 30 4 20 5 10 6 Refer to Table 9.2. Marginal revenue from the third unit of output is _____ Group of answer choices $100. $40. $120. $0. $20.1. TopGames buys the rights to sell a certain video game title worldwide. top games pay $400,000 for this right and the marginal cost of providing the video game download is zero. TopGames’ economist realizes they have two groups of customers: the 2,000 hard-core fans of this game who will pay up to $150 a year to be able to play this game; and the 10,000 casual gamers who will pay up to $50 a year to play this game. If TopGames can NOT price discriminate, what is its profit-maximizing price? What is its profit? a. Price = $50; Profit = negative $100,000 b. Price = $50; Profit = $300,000 c. Price = $150; Profit = $100,000 d. Price = $150; Profit = $500,0002. TopGames buys the rights to sell a certain video game title worldwide. top games pay $400,000 for this right and the marginal cost of providing the video game download is zero. TopGames’ economist realizes they have two groups of customers: the 2,000 hard-core fans of this game who will pay up to $150 a year to be able to play this…
- There is a monopolist, Concrete Mex, in the concrete market in Mexico. The demand function is Qd= 100-50p. The marginal cost of production is c = 0.4. a) ConcreteMex claimed the high price is due to high transportation costs and persuaded the government to help cut down the costs. As a result, for every unit of concrete sold, the government subsidizes ConcreteMex 0.2 dollars. What are the new profit maximizing price and production level for ConcreteMex? b) Under the subsidy policy and the new price in a part, calculate the consumer surplus, producer surplus, and deadweight loss. You do not need to consider government spending for the deadweight loss. c) Suppose ConcreteMex wants to enter a different market, the competitive market in Texas. To enter the market, ConcreteMex needs to pay a fixed cost of F = 1, and its variable cost in Texas is VC = (0.4+Q)Q. What is ConcreteMex’s total cost, marginal cost, and average total cost in Texas at production level Q?Token price increases from $1.25 to $2.50: Ridership now declines to 25 % equivalent to 10 M less riders.......Assume costs (accounting) increase to $ 55 M and economic costs increase to $ 65 M; Supply increases by + 10%; * What is your revised "PED" & "PES"?; * What are your new profit & loss values based on evaluation of both accounting & economic costs ? Are you better or worse off ? * What could happen if your analysis was extended from one (1) month to six (6) months ? * What could happen if your market's (audience) average income increases or decreases by + / - 15 % given the change in the token cost from $1.25 to $2.50 ? * Would your "PED" and "PES" and profit / loss values change as well ?need d and e rest part are solved answer is here Solution:- Given Monthly demand function: Q=300-4P .... (1) Cost function: TC=15Q+1000 ..... (2) Part a Revenue = Price * quantity Q=300-4P⇒4P=300-Q⇒P=75-0.25Q So R=PQR=75-0.25QQR=75Q-0.25Q2 ... (3) To maximize revenue, differentiate the equation 3 with respect to Q dRdQ=75-0.5Q Put dRdQ=075-0.5Q=0⇒0.5Q=75⇒Q=150 Second-order condition for revenue maximization: d2RdQ2=-0.5<0 Revenue is maximization quantity is 150 From equation 3 R=75×150-0.25×1502R=5625 The maximum revenue is $5625 part b Differentiate equation 1 with respect to Q dQdP=-4 Price elasticity is calculated as e=dQdP×PQe=-4×75-0.25×150150e=-4×0.25e=-1 Price elasticity at revenue-maximizing point is -1 part c Total cost of producing 150 units: TC=15×150+1000TC=3250 Profit at revenue-maximizing level of output: Profit = revenue - costProfit =5625-3250Profit =2375