2. A market analysis employed by the "Sad Student Company" reveals that the number of lots of the game named "Handsome Killer: Revenge of the Teacher" ordered by the wholesalers when the game is offered at a price of dollars per lot is given by the formula: p=1500 – 2.5q a) Find the company’s total, marginal and average revenues b) Find the price and quantity maximizing the total revenue by first expressing the revenue as a function of price rather than of quantity

2. A market analysis employed by the "Sad Student Company" reveals that the number of lots of the game named "Handsome Killer: Revenge of the Teacher" ordered by the wholesalers when the game is offered at a price of dollars per lot is given by the formula: p=1500 – 2.5q a) Find the company’s total, marginal and average revenues b) Find the price and quantity maximizing the total revenue by first expressing the revenue as a function of price rather than of quantity

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

The demand function for a certain brand of compact discs is given by p=-5x² 3x + 35 where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. (a) Compute the price, p, when x = 2. Price, p= dollars (b) Use implicit differentiation to compute the rate of change of demand with respect to price, p, when x = 2. Do not round your answer. Rate of change of demand, x' thousands of units per dollar (c) Compute the elasticity of demand when x = 2. Do not round your answer. Elasticity of Demand =
is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in 2) 2) time. A) Bundled B) Equilibrium C) Maximum retail D) Discount E) Competitive
Demand Function. The Creative Publishing Company (CPC) is a coupon book publisher with markets in several southeastern states. CPC coupon books are sold directly to the public, sold through religious and other charitable organizations, or given away as promotional items.Operating experience during the past year suggests the following demand function for CPC's coupon books Q = 5000 - 4000P + 0.02Pop + 0.25I + 1.54A where Q is quantity, P is price ($), Pop is population, I is disposable income per household ($),and A is advertising expenditures ($). A. Determine the demand faced by CPC in a typical market in which P = $10, Pop = 1000000 persons, I = $60000, and A = $10000. Also find the market saturation rate (MSR). B. Calculate the level of demand if CPC increases annual advertising expenditures from $10000 to $15000. C. Calculate the demand curves faced by CPC in parts A and B.
Consider the demand function given by: Q = 350 - 0.5P; Q is output demanded, and P is unit price. (a) Compute the price-elasticity of demand (Ep) when price is $200. (b) Interpret your result in (a). (c) Compute the value of the Marginal Revenue (MR) when price is $200. (d) Applying your answers in (a) and (c), verify that MR = P(1+1/Ep).
Which of these statements is most CORRECT about real world pricing strategies? Select one: a. Two part pricing is only beneficial when groups of customers have homogeneous demand b. Two part pricing should not be combined with price discrimination c. Price discrimination is used to separate customers into groups with heterogeneous demand d. Selling many substitute products is never a successful strategy
The demand function for a certain model of Blu-ray player is given by 300 p = 0.5x + 1 where p is the unit price in dollars and x (in units of a thousand) is the quantity demanded per week. What is the consumers' surplus if the selling price is set at $150/unit? (Round your answer to the nearest dollar.)
3) The marketing research department of a large manufacturing company has determined that the demand equations for two major items it produces are given by p = 2,000 -5x + 8y andq = 4,000 +9x-7y where p is the price of item A, q is the price of item B, x is the monthly demand for item A, and y is the monthly demand for item B. Find the total monthly revenue from items A and B whenx = 15 and y =5.
In 2003, the late mayor of Boston, Tom Menino proposed a $0.60 tax on movie tickets to help reduce the city's large budget deficit. He proposed the tax because of the large number of movie goers that are students in the Greater Boston area, but are not Boston voters. Suppose you have the following estimated market demand function for movie tickets. 0, 41.16 +221- 16P,+ 3.2P, -2P = In these equations, Q measures the number of tickets (in 100,000's), P is the price per ticket, F is annual average household income (in 1,000's of dollars), Pr is an index of food prices at area restaurants, and P; is the average price for admission to local sporting events at the collegiate level. After gathering the latest data, you find that average household income is $48,200 (remember, in the estimated demand function income is in $1,000s), the current level of the food index is 104.5, and the average admission price per sporting event is $12.50. The 2-dimensional supply function for this market is…
6. A record company estimates the industry demand for "hard alternative rock" albums to be: QD-1000 -125 P. It estimates the industry supply to be: QS = 125-P a. Given these estimates, what does it expect the industry output and price to be? b. A government commission announces that lyrics on "hard alternative rock" albums are offensive and should be banned. This causes consumers to purchase 20% more of such albums at any given price, compared to question 6a. What effect will this have on industry output and the price? c. Calculate the consumer surplus for parts a and b above. Are consumers better or worse off given the commission's recommendation?
Suppose a market has the demand function QD =12 - 0.6P Using the midpoint method, what is the price elasticity of demand between $10 and $20 (calculate your answers up to two decimal points, such as 2.0, 2.01, 2.10 Please do not use fractions or percentages. For example, do not write 22%, write as 0.22 instead) for p1=$10, q1= for p2=$20, q2= percentage change of price = percentage change of quantity= price elasticity of demand =
2. Luchansky and Monks (2009) estimated that the U.S. demand function for ethanol is Q = p-0.504pg 1.2692.226, where Q is the quantity of ethanol, p is the price of ethanol, pgis the price of gasoline, and v is the number of registered vehicle. What is the elasticity of demand for ethanol.
If this graph represents the market for Sonoran hotdogs in Tucson , which statement is true? A The market is monopolistically competitive and at its long run equilibrium B The market is a monopoly and firms are earning positive profits C The market is an oligopoly and firms are earning positive profits D The market is perfectly competitive and firms are suffering losses E The market is monopolistically competitive and not at its long run equilibrium