According to one estimate, the parts for a Segway Human Transporter-which has five gyroscopes, two tilt sensors, dual redundant motors, 10 microprocessors, and can travel up to 12.5 mph-cost at least $1,500 (Eric A. Taub, "Segway Transporter Slow to Catch On," San Francisco Chronicle, August 11, 2003: E4). Suppose that Segway's marginal cost is $1700, and the price of a Segway is $5500. What is the firm's pricelmarginal cost ratio? The price to marginal cost ratio is (round your answer to two decimal places) What is its Lemer Index? Its Lemer Index is (round your answer to two decimal places) What is the elasticity of demand it believes it faces (assuming that it is trying to maximize its short-run profit)? The price elasticity of demand is . (round your answer to two decimal places)

According to one estimate, the parts for a Segway Human Transporter-which has five gyroscopes, two tilt sensors, dual redundant motors, 10 microprocessors, and can travel up to 12.5 mph-cost at least $1,500 (Eric A. Taub, "Segway Transporter Slow to Catch On," San Francisco Chronicle, August 11, 2003: E4). Suppose that Segway's marginal cost is $1700, and the price of a Segway is $5500. What is the firm's pricelmarginal cost ratio? The price to marginal cost ratio is (round your answer to two decimal places) What is its Lemer Index? Its Lemer Index is (round your answer to two decimal places) What is the elasticity of demand it believes it faces (assuming that it is trying to maximize its short-run profit)? The price elasticity of demand is . (round your answer to two decimal places)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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