Answered: 1) Complete the table. Price 18 17 16…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please help me solve the tables and questions, and steps to how you got the answers to the questions.

Transcribed Image Text:1) Complete the table. Price 18 17 16 15 14 13 12 Quantity Total Marginal Fixed Demanded Revenue Revenue Cost 600 700 800 900 1000 1100 1200 900 1000 0 1700 100 1700 500 200 1700 1200 300 1700 2700 400 1700 5200 !!! 500 1700 9000 600 1700 15000 700 1700 23800 800 1700 36800 1700 55800 1700 83000 500 500 500 500 500 500 500 0 Variable Total Cost Cost STRAYER UNIVERSITY 5210 5640 6135 6700 7335 8060 8900 The cost of the bags, which must be ordered in batches of 100, is: Marginal Cost Total Bags /Participants Fixed Cost Variable Total Cost Average Variable Cost Cost Revenue wt Price $20 Average Variable Marginal Cost Cost 2) You are serving as the chair for your community's annual wellness campaign. A key event is the annual Walk 3k, Run 10k, Ride 20k event. The event is staged entirely by volunteers, and the goal is to attract community-wide awareness of getting active as a key step to wellness. In other words, the goal is not to raise money but to promote awareness. As the chair, you set a financial goal to break even on the one and only cost of the event: a fitness bag with the community seal and the event motto, "I AM ON THE RIGHT TRACK!" MR - MC Profit Percent Contribution Margin Marginal Revenue Total Profit © 2020 Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. Page 1 of 2 ECO550 a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags? b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P-AVC). 3) You make a lightweight compact foldable windbreaker. Your brand, Desert Wind Jackets, is well established in the Southwest. In a drive to broaden your appeal and open new markets, you have rebranded under the simple logo DWJ. The strength of your brand, loved by your customers in the Southwest, means you have a price elasticity on demand of -2.76. Market research indicates that in the Upper West, where there is some knowledge of your brand, the price elasticity of demand is -3.50. In New England, where you are least known, it is estimated that the price elasticity of demand will be quite high, -5.76. Your marginal cost per jacket is $198.33. a) What price will you charge in your southwestern region? b) What price will you charge in your upper-western region? c) What price will you charge in your New England region?

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