Using the table find the following.1. Elixir’s profit maximizing output ___bottles2. Profit maximizing price $___ per bottle3. Economic profit $___4. Starting at the equilibrium price, compute the elasticity of demand when there is an increase in price by +$1. The firm's fixed cost is $5 a day and its marginal cost is $1. The table below shows the demand schedule for Elixir flavored water.Elixir flavored waterMarginalTotal CostTotal RevenueQuantityRevenue[hint: TC=(MC Marginal Costx Q) + FCPrice ($)Fixed Cost(bottles)= Px Q-ΔTR/ΔQ10556.1918.167571732155864243515525151014624- 15113721- 351212816- 5131199-751410- 95151LOLO

Profit maximizing condition is that condition where Marginal revenue is equal to marginal cost.

Using the table find the following. 1. Elixir’s profit maximizing output ___bottles 2. Profit maximizing price $___ per bottle 3. Economic profit $___ 4. Starting at the equilibrium price, compute the elasticity of demand when there is an increase in price by +$1.

Using the table find the following. 1. Elixir’s profit maximizing output _bottles 2. Profit maximizing price $_ per bottle 3. Economic profit $___ 4. Starting at the equilibrium price, compute the elasticity of demand when there is an increase in price by +$1.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 9MC

See similar textbooks

Related questions

Q: In 2018, in the United States the sum of the balance of all three of the balance of payments…

A: In 2018, in the United States the sum of the balance of all three of the balance of payments…

Q: Hyperinflation has struck your country! The economy is experiencing 1.41% inflation every minute.…

A: Inflation is rise in the general price level over periods of time . It reduces the value of money…

Q: The figure shows the production possibilities frontier for a country. If the economy is operating at…

A: At point B, the country is producing 3 million of gallons milk and 3 million gallons of icecrease.…

Q: QUESTION 7 Keisha's income was $52,342 in 2011 and $64,983 in 2021. If the CPI rose from 225 to 271…

A: Consumer price index measures changes in the price of goods and services bought by consumers. An…

Q: 4. Here is the expression for money market equilibrium that we discussed in class:

A: Since you have mentioned to only to answer parts C and D, we will answer these two questions for…

Q: Average labour productivity is equal to A. the slope of the production function at the point (Y N)…

A: Average labor productivity measures the output produced per unit of labor. It is calculated by…

Q: As a result of the 1. ___ economic profit, some firms will 2. ___ the mountain bike industry.…

A: Firm will achieve maximum profit when MR= MC condition will satisfy . By seeing the graph the…

Q: 7. Total surplus TS' with the price ceiling is a. $96 b. $98 c. $100 d. $104 8. Based on your…

A: We have given Demand equation P=60-3Q .... (1) Supply equation P=4+4Q .... (2)…

Q: The graph shows the market for Mickey's Mountain Bikes. 1. What is the profit-maximizing output per…

A: MR and AR curve is downward sloping curve which means more of good only can be sold with low price .…

Q: Question 25 Calculate the total change in aggregate spending if investment increases by $200 billion…

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

Q: Try to comment the following statements with reference to the insight from the computer simulation…

A: Game theory is the study of how economic actors' interactions produce outcomes that are connected to…

Q: Jolene indorses the back of a check with the phrase: "without recourse." This makes Jolene a(n)…

A: When a buyer of a promissory note or other negotiable instrument takes the risk of default, they are…

Q: Give an example of a government-created monopoly. Is the creation of this monopoly necessarily good…

A: * ANSWER :-

Q: MARR (Minimum acceptable rate of return) is 12% per year while the re-investment rate is 10% per…

A: A hurdle rate, which is also known as the minimum acceptable rate of return (MARR), is the minimum…

Q: Explain the effect of a high value of the U.S. dollar on U.S. real GDP and the price level. The high…

A: Appreciation of currency will lead to reduce the net export because when a currency appreciates then…

Q: All points on the utility possibilities frontier satisfy the Pareto condition. TRUE OR FALSE

A: PPC is a graph that depicts the many combinations of two items that the economy can make. This graph…

Q: Explain the difference between saving and investment as defined by a macroeconomist. c. Which of…

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

Q: Answer questions as either True or False. If the answer is false, explain why it is false. Question…

A: According to Bartleby answering guidelines we are required to answer only one question in case of…

Q: How can the existence of asymmetric information provide a rationale for government regulation of…

A: Asymmetric information is a situation the information possessed by the parties is not symmetric. In…

Q: What is the value of an investment of Php 3,500 after 2 years if it earns 1.5% compounded quarterly

A: Given Value of investment = 3500 Php Time = 2 years Interest rate = 1.5 % compounded quarterly…

Q: a. Define income elasticity, and state its range of values for normal goods. whin in comet gors ap,…

Q: Cost of a machinery is Rp 10 Billion and the economic life of the machinery is 20 year. Assuming the…

A: Cost of machine = 10 billion Interest rate = 12% Economic Life = 20 years We find the annual worth…

Q: The world today is facing several energy challenges that are of concern to economists and…

A: The energy crisis is the fear that the world's demands on the limited natural resources required to…

Q: If wages and prices are fully flexible, output gaps will automatically close in The Ling-Run The…

A: Short run refers to the period of time where at least one factor of production is fixed. Long run…

Q: Explain the concept of comparative advantage and how it is related to the benefit that nations…

A: The law of comparative advantage was developed in 1817 by David Ricardo to explain why countries…

Q: For the nonconventional net cash flow series shown, the xternal rate of netun per year usg the Mst…

A: An unconventional cash flow is a progression of internal and outward cash flows after some time…

Q: If you were a Chinese exporter, what might you have done if you had anticipated the appreciation in…

A: The basic function of the foreign exchange market is to facilitate the conversion of 1 currency into…

Q: The equation for the 1.5 mile run/jog test is: VO,max (mi/kg/min) = 3.5 + (483 + (time in min.)]…

Q: Which of the following countries receives the least return on its investment in health care?a.…

A: Meaning of Health Economics: Here, the term health economics refers to the scenario under which…

Q: a. Explain why the aggregate short-run aggregate supply curve is upward sloping? b. What is the…

A: since you have asked multiple questions and according to policy we can solve only 1 question and for…

Q: TE 1. Federalists believed in a smal federa government

A: When talking about federalists, they are the people in the United States who beleives in the…

Q: A firm has the following total revenue and total cost schedules: TR = $2Q. TC = $5,500 + $1.3Q.…

A: Given:- TR=$2Q TC=$5500+$1.3Q To calculate:- Break even output level and profit at 8600 unit sale=?…

Q: (16] Operating in the short run with one fixed input and one variable input, the marginal product of…

A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…

Q: If Susan Kalanti deposits 400,000 USD into a saving account at CITIBANK, and you know that CITIBANK,…

A: Given: The amount deposited (monetary base)=$400000 Maximum loan =84% of the amount deposited

Q: Wage = 10 + 1.2 × male + 2 × educ + 0.15 × (male × educ) + u %3D he dependent variable is hourly…

Q: Explain the effect of Changes in domestic and foreign Interest Rates on the equilibrium exchange…

A: The economies around the globe are involved in international trade with each other. The nations…

Q: We learned that in a competitive market equilibrium the Marginal Cost equals the Price, as Marginal…

A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…

Q: A given level of consumer demand will support a large number of producers in an industry if Multiple…

A: Economies of scale means production of goods at large quantities which reduces the per unit cost .

Q: Compare and contrast the Equity Theory vs. the Attribution Theory.

A: Management is a process or activity that is used to attain an organizational goal by utilizing…

Q: What is an analytical device used to model welfare economic theory.

A: The study of how the distribution of resources and products impacts societal well-being is known as…

Q: er production function is given by y = as = 0.25, d= 0.1, and n = 0.02. ose that in country A, z =…

A: We have, y = zk.3, s = 0.25 d = 0.1 n = 0.02.

Q: If interest rates increase in financial markets, then...

A: Interest rates are defined as the charges taken by the lenders for the money lent ti the borrower.…

Q: WHAT is an allocation of resources such that no person can be made better off without making another…

A: Allocation of resources refers to the distribution of productive assets among various purposes.…

Q: Next 3 questions are related to the following: Arandom sample of 1200 vehicles on a freeway are…

A: 31. Sample proportion,P = xn=3261200=0.272

Q: Problem 6. Jack purchased his home for $495.500 in 2009. His brother offers him a price of 10%…

A: The most accurate way to determine a security's current worth is to look at the price it was most…

Q: Question 5 If the only Nash Equilibrium of the following game is (T, R), which of the following can…

A: (T,R) to be a unique nash requires that T must be a dominant strategy.

Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…

A: We have q=minL3, 3K .... (1) Where L denotes labor, K denotes wool and q denotes the unit…

Q: PATTS is deciding which of the two investments to take. Option A, total costs = $75,000,000 and the…

A: let's solve this with the helo of the Benefit-Cost ratio. Assumption Here we assume that bother the…

Q: How do patents and economies of scale can cause monopolies to form? Give a third possible reason…

A: Entry barriers keep competitors out of the market or discourage them from doing so. Economies of…

Q: Suppose the sample mean from a random sample of n observations drawn from a population known to have…

A: Given the sample mean X(bar) and standard deviation.

Question

Using the table find the following.

1. Elixir’s profit maximizing output ___bottles

2. Profit maximizing price $___ per bottle

3. Economic profit $___

4. Starting at the equilibrium price, compute the elasticity of demand when there is an increase in price by +$1.

The firm's fixed cost is $5 a day and its marginal cost is $1. The table below shows the demand schedule for Elixir flavored water.
Elixir flavored water
Marginal
Total Cost
Total Revenue
Quantity
Revenue
[hint: TC=(MC Marginal Cost
x Q) + FC
Price ($)
Fixed Cost
(bottles)
= Px Q
-ΔTR/ΔQ
10
5
5
6.
1
9
1
8.
16
7
5
7
1
7
3
21
5
5
8
6
4
24
3
5
1
5
5
25
1
5
10
1
4
6
24
- 1
5
11
3
7
21
- 3
5
12
1
2
8
16
- 5
13
1
1
9
9
-7
5
14
10
- 9
5
15
1
LO
LO

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The covid 19 pandemic has had a significant impact on the clothing industry. With more people working from home, the demand for business attire dramatically decreased. In the short run, a struggling business attire retailer should temporarily shut down if at the profit-maximizing or loss minimizing point the marginal revenue curve is
Exercise 4.5 Roger is a regular consumer of personalized greeting cards with Hofmann photographs. Its demand curve is given by q = 31 -0.5P. Rogelio is a representative consumer of this type of cards so we can assume that the rest of the customers, 1,000 in total, have the same demand curve. The supplier company, Hofmann, can produce each card at a constant average and marginal cost of €2. In the market of personalized greeting cards there are many other companies that offer very similar cards. Consider the following the scenario: iv) Hofmann acts as a second-degree discriminator monopolist and offers each of its customers the possibility to buy the first 15 cards at a unit price of € 32, the next 5 (from € 16 to 20) at a unit price of € 22 and the following 10 (from € 21 to 30) at a unit price of €2. Calculate the surplus of the consumer, the surplus the producer and represent graphically
Exercise 4.5 Roger is a regular consumer of personalized greeting cards with Hofmann photographs. Its demand curve is given by q = 31 -0.5P. Rogelio is a representative consumer of this type of cards so we can assume that the rest of the customers, 1,000 in total, have the same demand curve. The supplier company, Hofmann, can produce each card at a constant average and marginal cost of €2. In the market of personalized greeting cards there are many other companies that offer very similar cards. Consider the following the scenario: iv) Hofmann acts as a second-degree discriminator monopolist and offers each of its customers the possibility to buy the first 15 cards at a unit price of € 32, the next 5 (from € 16 to 20) at a unit price of € 22 and the following 10 (from € 21 to 30) at a unit price of €2. Calculate, for the 4 scenarios proposed (i) (ii) (iii) and (iv), the surplus of the consumer, the surplus the producer, represent graphically and indicate: a) Which scenario is the most…
Chloe is a chef who runs a niche food delivery business in a competitive industry. Chloe specializes in making monster calzones. Chloe sells 20 monster calzones per month. Her monthly total revenue is $5,000. The marginal cost of making a monster calzone is $300. In order to maximize profits, Chloe should A) make more than 20 calzones per month. B) make fewer than 20 calzones per month. C) continue to make 20 calzones per month. D) We do not have enough information with which to answer the question.
Two dairy farmers produce milk for a local town with local milk demand given by Q=100-0.3333333333P(P denotes price measured in Rands, Q denotes the quantity measured in liters). Both farmers have the same cost function given by TC=150+2q(wheredenotes output). (h) What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers.
the cost of producing a bottle of zlurp is 1.50, and the competitive suppliers sell it at this price. Each whovillian will consume
Exercise 4.5 Roger is a regular consumer of personalized greeting cards with Hofmann photographs. Its demand curve is given by qd = 31 - 0.5P. Rogelio is a representative consumer of this type of cards so we can assume that the rest of the customers, 1,000 in total, have the same demand curve. The supplier company, Hofmann, can produce each card at a constant average and marginal cost of €2. In the market of personalized greeting cards there are many other companies that offer very similar cards. Consider the following 4 scenarios: (i) Hofmann acts as a perfect competitor. ii) Hofmann acts as a monopolist. iii) Hofmann acts as a first-degree discriminator monopolist iv) Hofmann acts as a second-degree discriminator monopolist and offers each of its customers the possibility to buy the first 15 cards at a unit price of € 32, the next 5 (from € 16 to 20) at a unit price of € 22 and the following 10 (from € 21 to 30) at a unit price of €2. Calculate, for the 4 scenarios proposed, the…
Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?
Parkleigh Pharmacy is an upscale department store in Rochester, NY, that sells personal accessories and home decorations. Kaufmann’s is a departmental store based in Pennsylvania and has several stores in Rochester, NY. Kaufmann carries a broad range of products and caters to middle-class customers. A salesperson at Parkleigh is paid a straight hourly wage (e.g., no sales commission) and 30% discount from purchasing any product from Parkleigh’s store. A salesperson at Kaufmann gets an hourly wage lower than Parkleigh’s hourly wage but gets 5% commission on sales. However, the product salesperson buys from Kaufmann without a discount. Explain why does Kaufmann pays sales commission, and Parkleigh doesn’t
Based on market research, a film production company in Ectenian obtains the following information about the demand and production costs of its new DVD:Demand: P = 1,000 – 10QTotal Revenue: TR = 1,000Q – 10Q2Marginal Revenue: MR = 1,000 – 20QMarginal Cost: MC = 100 + 10Qwhere Q indicates the number of copies sold and P is the price in Ectenian dollars.d. Suppose, in addition to the costs above, the director of the film has to be paid. The company is considering four options:i. A flat fee of 2,000 Ectenian dollarsii. 50 percent of the profitsiii. 150 Ectenian dollars per unit soldiv. 50 percent of the revenueFor each option, calculate the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain
Habib Bank Limited estimates equation of demand of its product as: Q = 55 – 0.5P - (where P = price and Q = Quantity of output), and its total cost of production as TC = 20 + Q + 0.2Q2 Where TC = total cost and Q = Quantity of output) Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC? Average Variable Cost AVC? Average Fixed Cost AFC.? Marginal Cost MC? The output level that will maximize total profit and the amount of revenue and profit that Habib Bank would receive at optimal level of production.? The output level that minimizes average total cost.? please answer all questions
A firm's demand and total cost function are given by the expression: P = 20 - Q/2 (1) TC = 0.5Q2 + 36 (2) Where P is price per unit in £ TC = total cost in £ Q is quantity demanded and produced. Find the profit-maximising level of output using the profit function and calculate how much profit is made at this output level.