9. Problems and Applications Q3 Johnny Rockabilly has just finished recording his latest CD. His record company can produce the CD with no fixed cost and a variable cost of $5 per CD. The company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold. Total Revenue Marginal Revenue (Dollars) (Dollars) Price (Dollars) Number of CDs 24 10,000 22 20,000 20 30,000 18 40,000 16 50,000 14 60,000 AAAAA Profit is maximized at a quantity of 40,000 CDs and a price of $18. This results in a profit of If you were Johnny's agent, you would advise Johnny to demand a recording fee of $700,000. from the record company.

9. Problems and Applications Q3 Johnny Rockabilly has just finished recording his latest CD. His record company can produce the CD with no fixed cost and a variable cost of $5 per CD. The company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold. Total Revenue Marginal Revenue (Dollars) (Dollars) Price (Dollars) Number of CDs 24 10,000 22 20,000 20 30,000 18 40,000 16 50,000 14 60,000 AAAAA Profit is maximized at a quantity of 40,000 CDs and a price of $18. This results in a profit of If you were Johnny's agent, you would advise Johnny to demand a recording fee of $700,000. from the record company.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price of Good X(Px) Quantity of Good X(Qx) Own Price Elasticity Total Revenue 0 100 0.00 0 5 90 −0.11 450 A 80 −0.25 800 15 70 −0.43 1050 20 60 −0.67 1200 25 50 C 1250 30 B −1.50 1200 35 30 −2.33 1050 40 20 −4.00 D 45 10 −9.00 450 50 0 −∞ 0 The demand function in the accompanying table is QXd = 100 − 2PX. Based on this information, compute the own price elasticity of demand when PX = $25 (point C).
How do I calculate the price elasticity in this chart? and how do I graph the results? P Q Price Total Elasticity Revenue $9.00 1 - 9 $8.00 2 16 $7.00 3 21 $6.00 4 24 $5.00 5 25 $4.00 6 24 $3.00 7 21 $2.00 8 16
Answer this question in the image below.
3. The effects of price changes on total revenue Edison's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Edison produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Edison faces. As you can see, to sell the additional engine, Edison must lower his price from $105,000 to $90,000 per fire engine. Note that while Edison gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. (Note: Area is shown in thousands.) ICE (Thousands of dollars per fire engine). 150 135…
How do I get the price elasticity number?? and how do I graph it? P Q Price Total Elasticity Revenue $9.00 1 - 9 $8.00 2 16 $7.00 3 21 $6.00 4 24 $5.00 5 25 $4.00 6 24 $3.00 7 21 $2.00 8 16
Please give me correct and incorrect explanation Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality. Take care of plagiarism. Answer completely. You will get up vote for sure.
Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B(sales per week) (sales per week) Volume of sales beforethe 10% discount 1.55 million 1.50 million Volume of sales afterthe 10% discount 1.65 million 1.70 million A. Using the midpoint method, calculate the price elasticities of demand for group A and group B. B. Explain how the discount will affect total revenue from each group. C. Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?
Suppose that you are the marketing manager of Citruscity, the only producer of grapefruits in the imaginary economy of Blockburg. As a monopolist, Citruscity's objective is to maximize its profit, so it is up to you devise a way to increase profits through price discrimination. As a former economics student, you know that many firms successfully practice price discrimination by separating their market into two identifiable types of consumers-what economists call third-degree price discrimination. Examples of this include student discounts, senior citizen discounts, and ladies' night discounts. After doing some research, you conclude that the demand for grapefruits varies greatly between consumers who clip coupons and those who do not. The following graphs show the overall dailly demand and marginal revenue (MR) for a pound of grapefruits for each group of consumers and the marginal cost (MC) for producing a pound of grapefruits. Assume that fixed costs are equal to zero. Note: You will…
6. Al's Appliancemart has market power in selling refrigerators. He just got in a shipment of undamaged refrigerators. Al has determined that there are two different types of buyers. One group are high demanders who have a more inelastic demand but tend to be picky about how nice their appliances look (they won't buy a dented one). Other buyers, low demanders, have a relatively more elastic demand, but also don't mind having a refrigerator with some dents. He pays $600 for each refrigerator from his supplier. 3/3 He has calculated that the high and low demander demand functions follows: Low: P = 1,000-0.5QL (QL = 2,000 - 2P) High: P = 1,600 - QH (QH = 1,600 – P) How much profit could Al earn if he sells them as is? How many should he add dents to (with a hammer) in order to maximize profit? What price would he then put on the non-dented and the dented refrigerators and how many would he sell of each? What would his profit then be?
Use the above figure. Total revenue at the profit-maximizing output is
7. Study Questions and Problems #7 Use the data from the following demand schedule to answer the questions that follow. Price (P) (Dollars) Total Revenue (TR) Marginal Revenue (MR) Quantity Demanded (Q) (Dollars) (Dollars) 20.00 0 0.00 18.00 18.00 1 18.00 14.00 16.00 2 32.00 10.00 14.00 3 42.00 6.00 12.00 4 48.00 2.00 10.00 5 50.00 -2.00 8.00 6 48.00 -6.00 6.00 7 42.00 -10.00 4.00 8 32.00 -14.00 2.00 9 18.00 -18.00 0.00 10 0.00 Make the unrealistic assumption that production is costless for the monopolist in this question. The monopolist will charge a price of $ for the monopolist. per unit and sell units. This will yield an economic profit of S Now assume the marginal cost is above zero and is equal to the marginal revenue of the fourth unit. The monopolist will now charge monopolist will now earn price and produce when production was costless. In turn, the economic profit compared to when production was costless.
Use the data from the following demand schedule to answer the questions that follow. Price (P) (Dollars) Quantity Demanded (Q) Total Revenue (TR) (Dollars) Marginal Revenue (MR) (Dollars) 24.00 0 0.00 21.60 21.60 1 21.60 16.80 19.20 2 38.40 12.00 16.80 3 50.40 7.20 14.40 4 57.60 2.40 12.00 5 60.00 -2.40 9.60 6 57.60 -7.20 7.20 7 50.40 -12.00 4.80 8 38.40 -16.80 2.40 9 21.60 -21.60 0.00 10 0.00 Make the unrealistic assumption that production is costless for the monopolist in this question. The monopolist will charge a price of $ for the monopolist. per unit and sell units. This will yield an economic profit of $ Now assume the marginal cost is above zero and is equal to the marginal revenue of the fourth unit. The monopolist will now charge monopolist will now earn price and produce when production was costless. In turn, the economic profit compared to when production was costless. Grade It Now Save & Continue