3. Ariana Grande has just finished recording her latest CD. Her record company's marketing department determines that the demand for the CD is as follows: Price $24 22 Number of CDs 10,000 20,000 30,000 40,000 50,000 60,000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Find total revenue for quantity equal to $10,000, $20,000, and so on. What is the marginal revenue for each $10,000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would the price be? What would the profit be? c. If you were Ariana's agent, what recording fee would you advise her to demand from the record company? Why? 20 18 16 14

3. Ariana Grande has just finished recording her latest CD. Her record company's marketing department determines that the demand for the CD is as follows: Price $24 22 Number of CDs 10,000 20,000 30,000 40,000 50,000 60,000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Find total revenue for quantity equal to $10,000, $20,000, and so on. What is the marginal revenue for each $10,000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would the price be? What would the profit be? c. If you were Ariana's agent, what recording fee would you advise her to demand from the record company? Why? 20 18 16 14

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1.A property costs $1,000 today. If it is apreciating at a rate of 5%, calculate its price in 5 years.
3 Calculate the income taxes that a person has to pay considering the table below- If a person's income is $6,500, how much does he pay in taxes? If a person's income is $13,500, how much does she pay in taxes? (a) (b) Taxable Up to $5,000 $5,001-$10,000 $10,001-$15,000 Income Taxes 10% of taxable income 14% of taxable income 16% of taxable income
help
per ogr 82.00 20.00 17.50 16.00 12.00 10.00 7.50 6.00 2.60 250 500 750 1000 120 1500 1750 Quantity of ehrimp (in kilogram) Government of Canada has introduced deficiency payment program with a target price equal to $1750 per kilogram of Shrimp, Government spending under the program is Select one Oa $12,500 Ob $22500 Oc $15,000
5. It is a common practice in lending companies that the interest is deducted at the time money is borrowed. Mr. Anito applied a loan amount of P 50,000 with an interest rate of 16% per year. During the time he received the money, the 16% interest is being deducted and he received only P 42,000. At the end of one year, Mr. Anito has to pay P 50,000. What is the actual rate of interest?
Solve the attachment.
E2
1. A steel bar manufacturer business can make 15000 bar a week. It is determined that to achieve this production, the company need to spend 90000 pesos weekly for materials, utilities and transportation. The manager also pays a fixed cost of 10000 pesos per week. HOW MUCH per steel bar should they sell to gain a profit of 40% of the total cost?
ONLY NEED QUESTIONS 5,6,8,10 and 13
AFCATC $120150 6085 4060 3048 2145 2042 17.444 1548 MC 30 20 10 12 28 38 50 72 Quantity 2 3 4 7 Refer to the above information to answer this question. What is the value of the breakeven price? O a) $42 Ob) $40 Od $18 Od) $30
8
2