MICROECONOMICS (LL) W/CONNECT ACCESS
21st Edition
ISBN: 9781264197163
Author: McConnell
Publisher: MCG CUSTOM
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Textbook Question
Chapter 14.2, Problem 2QQ
The D2e segment of the
a. this firm’s total revenue will fall if it increases its
b. other firms will match a price increase above P0.
c. the firm’s relevant marginal-revenue curve will be MR1 for price increases above P0.
d. the product in this industry is necessarily standardized.
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Suppose that a firm has estimated its demand curve as q = 36,233 - 96*P, where P is the price per unit and q is the quantity of units produced. What is the firm's marginal revenue equal to when it produces 2,513 units? Please round to two decimal places. (Hint: this is the demand, not the inverse demand!)
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
A6
You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $2.0 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for midsized Honda automobiles is -1.8. In each of the last five years, your dealership has sold more midsized automobiles than any other Honda dealership in the nation. This entitled your dealership to an additional 35 percent off the manufacturer’s suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $13,000. What price should you charge for a midsized automobile if you expect to maintain your record sales?
Determine the
profit-maximizing
LOADING...
prices when a firm faces two markets where the inverse demand curves are
Market A:
pA=120−2QA,
where demand is less elastic, and
Market B:
pB=80−0.5QB,
where demand is more elastic, and
Marginal
Cost=m=20
for both markets.
Part 2
For Market A:
pA=$enter your response here.
(Round your response to two decimal places.)
Part 3
For Market B:
pB=$enter your response here.
Chapter 14 Solutions
MICROECONOMICS (LL) W/CONNECT ACCESS
Ch. 14.2 - Prob. 1QQCh. 14.2 - The D2e segment of the demand curve D2eD1 in graph...Ch. 14.2 - Prob. 3QQCh. 14.2 - Prob. 4QQCh. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 6DQ
Ch. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQCh. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - Prob. 1RQCh. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - Prob. 9RQCh. 14 - Prob. 10RQCh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3P
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