The price elasticity of demand increases with the length of the period considered because consumers incomes will increase over time the demand curve will shift outward as time passes all prices will increase over time consumers will be better able to find substitutes. 2 A profit-maximizing firm in the short run will expand output until marginal cost begins to rise until total revenue equals total cost until marginal cost equals average variable cost as long as marginal revenue is greater than marginal cost

Q: 18) When a firm saw the price of its product rise from $240 to $260 per unit, it increased its…

A: The elasticity of supply would result in the ratio of the percentage change in the supply to the…

Q: Please explain why true or false. 1. Total revenue is maximized when the price elasticity of supply…

A: Q1 and Q2: The elasticity of demand is a measure of sensitiveness of quantity demanded because of…

Q: Refer to Figure 5-11. When a new, more productive strawberry was developed which caused supply to…

A: As the question suggest there's a new, more productive strawberry has been developed which causes a…

Q: QUESTION 4 Electricity accounts for almost 20% of the cost of making steel. A 10% increase in…

A: Price elasticity of demand: It is the responsiveness of the change in quantity demanded of a…

Q: If a bottle of Ms. Dior perfume currently sells for $49.99 per bottle, a decrease in price to $42.99…

A: The perfectly elastic demand would mean when the quantity demand changes drastically when the price…

Q: A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8…

A: Note:- Der Learner you have posted a question with multiple sub parts, as per our policy we have…

Q: (b). The Carrefour Hypermarket sells 2,500 boxes of chicken per month at RO 3.50 each. The own price…

A: Ed = % ΔQd / % ΔP Let X to be new quantity demand of chicken % change in quantity = [Initial…

Q: What will happen to sales for long-distance telephone if its price increases by 5% and income…

A: Price elasticity of demand measures the responsiveness of quantity demanded for a good due to…

Q: 2. Given the constant elasticity demand function as: P = apb where b is the elsticity of demand a.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: 1. The demand curve for a product is given by Qx= 1,200 – 3Px – 0.1Pz Where Pz SR300. What is the…

A: Own price elasticity measures the responsiveness of quantity demanded to change in the price of the…

Q: 1. The ëstimated demand curve för a firm's product is represented by the equation: Q = 66000 – 10P…

A: Given, Demand function: Q = 66,000-10P                               P = 66,000 - Q10…

Q: 9. If a firm in a competitive market doubles its number of units sold, total revenue for the firm…

A: Since you have asked multiple questions and did not mention which question to be solved, we will…

Q: 3. In each case below, determine the effect on the sellers' total revenue and identify whether the…

A: Answer: Introduction: If the demand for a particular good is elastic then there will be an inverse…

Q: 1. Refer to the figure below. The equation for p = 105-0.005D. Calculate a) fixed cost b) optimum…

A: Demand is an economic theory that refers to a consumer's desire to buy products and services as well…

Q: Instructions: Enter your answers rounded to two decimal places. For each segment, be sure to enter…

A: Total revenue is the product of the total amount of goods and services and their price. Marginal…

Q: The manager of the Sell-Rite drug store accidentally mismarked a shipment of 20-pound bags of…

A: When the price (P1) is $ 5.18, the firm normally sells (Q1) 150 bags per week. When the price (P2)…

Q: An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS 40 each. When the…

A: Elasticity of demand is the responsiveness of the quantity demanded of a commodity to changes in one…

Q: 1. Suppose the market demand curve for mink coats is as follows: Price ($) Quantity demanded of Mink…

A: Price elasticity of demand (PED) refers to the economic measure of the percentage change in quantity…

Q: 8.3. The demand for Firm B is said to be elastic. Do you agree with this statement? Justify your…

A: Price elasticity of demand is the responsiveness of quantity demanded to a change in price. The…

Q: 5. Suppose that an increase in the price of almonds from $1.82 to $1.94 per pound raises the amount…

A: When the price rises from $1.82 to $1.94, the supply increases from 2.46 billion to 2.67 billion…

Q: Consider a firm’s demand equation, which is given as: Q = 100 - 5P where Q is the quantity demanded…

A: Price elasticity of demand measures the relationship between the change in the quantity demanded of…

Q: 15. The following figures were obtained from a company's accounts. aVFrm $105,000 $180,000 $46,000…

A: Ice in a fish market generally commands a price, while in the Alaska it can be considered a/an

Q: An end-of-aisle price promotion changes the price elasticity of a good from −4 to −5. Suppose the…

A: Elasticity of Goods: It refers to the responsiveness of the quantity demanded of the goods and…

Q: 5. Compute for the Price Elasticity of corn, beef and silk using the Elasticity formula. Supplement…

A: Price elasticity is calculated as Ed=% change in quantity demnded % change in price

Q: Explain the following question by logical answers (a) Explain why the cross elasticity of demand for…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: For problems 1 – 4: The Dolan Corporation, a maker of small engines, determines that in 2019 the…

A: Solution-

Q: The price p (in dollars) and the quantity q sold of a certain product obey the demand   equation…

A: “Since you have asked multiple questions, we will solve the first question for you. If you  want any…

Q: Q1. From the given table calculate Elasticity of Price, Total Revenue and Marginal Revenue. Also,…

A: Total revenue is the total receipts a producer earn from selling its product. Marginal revenue is…

Q: a Slurpico Department of Energy. Prices are in dollars and sales are in gallons per day and driven…

A: Since you have posted a question with multiple subparts, we will solve the first three sub-parts for…

Q: 8.2. The demand for Firm A is said to be elastic. Do you agree with this statement? Justify your…

A: Price elasticity of demand is the change in the quantity demanded of a good in response to the…

Q: 3. The functions determining weekly supply and demand of a product are as follows: TC = 6,404,000 –…

A: Total Cost(TC)=6,404,000-1240Q+0.155Q^2   a) i) Marginal cost is the additional cost incurred when…

Q: What can you conclude about the price elasticity of demand in each of the following statements? 2-…

A: In microeconomics, price elasticity of demand for a commodity is a measure that determines the…

Q: Answer the last two parts which is  •Calculate the break even and profit maximizing levels of…

A: A breakeven point is a point where the firm only covers its total cost from the revenue and the firm…

Q: Agricultural economists at the Department of Agriculture have estimated the following  elasticities.…

A: As a beef producer, the most threatening competitor in the industry would be the pork industry the…

Q: A firm finds that its price elasticity of demand is 4.0. Currently, the firm is selling 2000 units…

A: An elastic demand is one in which the adjustment of quantity demanded because of an adjustment of…

Q: When you compare the absolute value of the price elasticity of demand for most products [Hint, oil…

A: The quantity demanded of a good is defined as the amount of the good the consumers are willing and…

Q: When the price of gasoline fell to $2.10 per gallon, Ben purchased 12 gallons of gasoline. Use price…

A:

Q: PROBLEM (2) The demand and supply in a market are of constant elasticity form with elasticities…

A: The elasticity of Supply = 2 The elasticity of demand = -1 Market Equilibrium Price = 2 Market…

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?