2 The total revenue from the sale of x stereos is given by R(x) = 1,000 1 Find the 700 marginal average revenue, R'(x). 700 O A. R'(x)= 0.002- x? 1,000 O B. R'(x) = 0.002 - 1,000 Oc. R'(x)= 1.43 - x² 700 O D. R'(x) = 1.43- x2
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- The price p (in dollars) and the quantity q sold of a certain product obey the demandequationq − 800 - 20P and 0 < p < 40 (answer iv and v) (i) Express the revenue R as a function of q.(ii) What is the revenue if 20 units are sold?(iii) What quantity q maximizes revenue? What is the maximum revenue?(iv) What price should the company charge to maximize revenue?(v) What price should the company charge to earn at least $3500 in revenue?Rahim runs a fruit stand where he sells apples and mangoes. Each apple costs BDT 5.00 per piece and each mango costs BDT 8.00. The demand for apples and bananas are described by the following functions, where Pa, and Pm denotes the price of apples and bananas.Qa= 300-5Pa+ 3Pm Qm = 3Pa – 2.5Pm What prices of mangos and apples Rahim should set in order to maximize profit?The Hevishus Corp. (HC) is a profit-maximizing company that owns the only cement factory in Charleston, South Carolina, and is the only seller of cement in that area; it also owns the only cement plant in Portland, Oregon, and is the only seller of cement there. 1. Its statistician-consultant has determined that the elasticity of demand for cement in Portland is -3.50 and in Charleston is -2.25, and HC has priced its cement in accordance with this information. In which city does it charge a higher price for cement? Explain. 2. The mayor of Portland has levied a $250,000 annual factory fee on any cement factory in the city. Though it is not happy about the fee, HC pays it and continues producing and selling cement in Portland. How will the fee affect the price of cement that HC sells in Portland? Explain.
- Cikli is the manager of a firm that receives a revenue of RM3000 per month from product X and RM7000 per month from product Y. The price elasticity of demand for product X is -2.5 when original quantity (Q) for X and Y are 150 and 175 units, respectively and the cross price elasticity of demand between product X and Y is 1.1. If Cikli increases the price of good X by 1%. a. How much will Cikli's total revenue change for product X? b. How much is Cikli's new total revenue for both of the products? c. Plot a graph for product X and another for product Y, showing the before and after change in price. d. Give an appropriate example for each product. 2. Zulaikha and Ker Xin went to a shop to buy rice. Zulaikha wanted to buy 10kg of rice and Ker Xin wanted to buy RM20 worth of rice. Find the price elasticity of demand for each of them. 3. Nadzif always spends one-fifth of his income on food. Calculate his income elasticity of demand (use the midpoint formula).The price p (in dollars) and the quantity q sold of a certain product obey the demandequationq − 800 - 20P and 0 < p < 40(i) Express the revenue R as a function of q.(ii) What is the revenue if 20 units are sold?(iii) What quantity q maximizes revenue? What is the maximum revenue?Suppose you are the manager of a restaurant that serves an average of 400 meals per day at an average price per meal of $20__. On the basis of a survey, you have determined that reducing the price of an average meal to $18__ would increase the quantity demanded to 450 per day. a. Suppose you have reduced the average price of a meal to $18 and are considering a further reduction to $16. Another survey shows that the quantity demanded of meals will increase from 450 to 500 per day. Compute the price elasticity of demand between these two points.
- Cikli is the manager of a firm that receives a revenue of RM3000 per month from product X and RM7000 per month from product Y. The price elasticity of demand for product X is -2.5 when original quantity (Q) for X and Y are 150 and 175 units, respectively and the cross price elasticity of demand between product X and Y is 1.1. If Cikli increases the price of good X by 1%. How much will Cikli’s total revenue change for product X?Cikli is the manager of a firm that receives a revenue of RM3000 per month from product X and RM7000 per month from product Y. The price elasticity of demand for product X is -2.5 when original quantity (Q) for X and Y are 150 and 175 units, respectively and the cross price elasticity of demand between product X and Y is 1.1. If Cikli increases the price of good X by 1%. How much will Cikli’s total revenue change for product X? How much is Cikli’s new total revenue for both of the products? Plot a graph for product X and another for product Y, showing the before and after change in price. Give an appropriate example for each product.Cikli is the manager of a firm that receives a revenue of RM3000per month from product X and RM7000 per month from productY. The price elasticity of demand for product X is -2.5 whenoriginal quantity (Q) for X and Y are 150 and 175 units,respectively and the cross price elasticity of demand betweenproduct X and Y is 1.1. If Cikli increases the price of good X by1%.a. How much will Cikli’s total revenue change for product X?b. How much is Cikli’s new total revenue for both of the products?
- A hot dog vendor faces a daily demand curve of Q=1800-15P. If the vendor has been selling 300 hot dogs each day. How much revenue has he been collecting?17 If the inverse demand function for computers was p = 70 - qAnd the selling price was $35 could you increase price to receive more revenue?The demand curve for a product is given by Qdx = 1,200 − 3Px − 0.1Pz where Pz = $300. a. What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $140? b. What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $240? c. What is the cross-price elasticity of demand between good X and good Z when Px = $140? Are goods X and Z substitutes or complem