Illustrate using an appropriate diagram where amazon.com sets price to maximise profit to explain in some detail how the outcomes to customers compare to a more competitive, price-taking firm.In your diagram, assume at the profit-maximising point in Q2 of 2021 the average price of items is $27*, and also that Amazon’s online shopping customers are very price-conscious. Use hypothetical values (rough guesses) relying on intuition for quantities and cost.In your answer, do a little more additional research and elaborate on alleged ways the monopolist sustains its profitability in light of the accusations of the attorney general for the District of Columbia.

Since the firm chooses E rather than F, there is a loss of potential surplus, known as the…

Illustrate using an appropriate diagram where amazon.com sets price to maximise profit to explain in some detail how the outcomes to customers compare to a more competitive, price-taking firm. In your diagram, assume at the profit-maximising point in Q2 of 2021 the average price of items is $27*, and also that Amazon’s online shopping customers are v

Illustrate using an appropriate diagram where amazon.com sets price to maximise profit to explain in some detail how the outcomes to customers compare to a more competitive, price-taking firm. In your diagram, assume at the profit-maximising point in Q2 of 2021 the average price of items is $27*, and also that Amazon’s online shopping customers are v

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 10SQP

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give everything in ms excel steps for the following (Profit Model) The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price; when price decreases, demand increases and vice versa. One major airline has found that when the price (P) for a round trip between Chicago and Los Angeles is $500, the demand (D) is 700 passengers per day. When the price is reduced to $300, demand is 1,000 passengers per day. a. Plot these points on a coordinate system and develop a function that relates demand to price. b. Develop a mathematical model that will determine the total revenue as a function of price. c. Provide a recommendation to the airline company about the price that should be selected for the round trip between Chicago and Los Angeles such that their revenue is maximized. Describe how you have reached to this recommendation? (your solution may not be the best solution but should be a good solution).
Price ($/slice) For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit- maximizing level of output and how much profit will this producer earn if the price of pizza is $2.50 per slice? Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Then, indicate the profit-maximizing level of output on the graph. 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0 Cost Curves Tools -O Select ▼ Select ▼ Select ▼ Q* 100 200 300 400 500 600 700 800 900 Quantity (slices/day)
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the accompanying diagram, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $0.80 per slice? Instructions: In the graph below, label all three curves by double-clicking on the ??? to select the appropriate label. Then, indicate the profit-maximizing level of output and the Average Total Cost (ATC) at that output level. Price ($/slice) 2.5 1.39 1.15 685 80 .68 .50 200 260 360 Quantity (slice/day) reset 570 ד Q* ד ??? ATC ??? ??? Instruction: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. At the profit-maximizing level of output, the producer's profit is: $ per day.
In the following scenarios, you will be given a product and an event. Determine what will happen to the demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example. EXAMPLE/ Product - Hamburgers Event - The price of steak increases EXAMPLE ANSWER/ Demand increases - Curve shifts right - Price of substitutes Rock Salt - It snows 8 inches over night
In the following scenarios, you will be given a product and an event. Determine what will happen to the demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example. EXAMPLE/ Product - Hamburgers Event - The price of steak increases EXAMPLE ANSWER/ Demand increases - Curve shifts right - Price of substitutes Salt - The price of salt doubles. 2. Sunscreen - Summer approaches. 3. Big Macs - The population in the United States increases by 20%. 4. Rock Salt - It snows 8 inches over night
In the following scenarios, you will be given a product and an event. Determine what will happen to the demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example. EXAMPLE/ Product - Hamburgers Event - The price of steak increases Answer/ Demand increases - Curve shifts right - Price of substitutes 1. Pepsi - The price of Coke decreases dramatically. 2. Steak - Incomes fall due to the recession 3. Hair dye - Hair dye is successfully advertised in the media. 4. Computer software - The price of computers goes down.
3.1) Chanelle’s chocolate factory has experienced financial difficulties. As a learned economics student, she has requested your aid to assist her in identifying various linear business functions. You have extracted the following co-ordinates and information for the month of May 2022: Please note that price is the x co-ordinate and quantity is the y co-ordinate. Total cost - A (3000;3) Variable cost – B (3000; 2) Total Revenue – C (12000; 4) Fixed cost = R2500 Using the following co-ordinates Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure
On January 27, 2011, the price of Ford Motor Company stock hit an almost 10-year high at $18.79 per share. (Two years prior, in January 2009, Ford stock was trading for about a tenth of that price.) Suppose that on January 27, 2011, you owned 10,000 shares of Ford stock (a small fraction of the almost 3.8 billion shares). Suppose you offered to sell your stock for $18.85 per share, just slightly above the market price. If you ask a price of $18.75, how many shares would you sell? Should you sell your shares at $18.75 per share? Group of answer choices 10,000; Yes 10,000; No 0, Yes. 0; No.
Now analyze the impact of the outbreak of respiratory illnesses on the market for antibiotics. What health care experts are calling the “tripledemic” (Covid, flu, and RSV) has dramatically increased demand for antibiotics in the United States. Assume there are no changes to the supply of these drugs. On the same graph you produced in Question 1, graphically depict any changes affecting the market for antibiotics and any changes that impact the individual firm. Show the movements of the curves (if any) and the new Short Run Equilibrium (SRE). Indicate the new market equilibrium P1 and Q1, the optimal output of an individual firm representative of the other firms in the industry at this SRE (labeled as q1), and the individual firm’s profit π1, if any (shaded and clearly labeled). Reminder: be sure to label all relevant points and axes.
Analyze the demand function for Toyotas in problem C4, page 82. Please also read “What is a Symbol” located in the folder with this assignment. This function is: QT = 200 -.01PT +.005PM -10PG +.01I +.003A Where: QT = quantity purchased PT = average price of Toyotas PM = average price of Mazdas PG = price of gasoline I = per capita income A = dollars spent annually on advertising Characterize this function by circling all in the following list that are applicable: univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1st degree, 3rd degree, additive, multiplicative, linearly homogeneous What is the numerical value of the partial derivative of the function with respect to the price of gasoline (PG) (be sure to also include the + or – sign. Note: I do not want the symbol for this partial derivative)? Write the mathematical symbol representing the coefficient of income (I) (the numerical…
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit- maximizing level of output and how much profit will this producer earn if the price of pizza is $0.50 per slice? Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Enter your responses as whole numbers. Price ($/slice) 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0 Cost Curves MC ATC Quantity (slices/day) AVC L 100 200 300 400 500 600 700 800 900 o When the price is $0.50 per slice, the profit-maximizing level of output is o slices per day. At the profit-maximizing level of output, the producer's profit is: $ 225 per day.
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.50 per slice?Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Instructions: Enter your response as a whole number. If you are entering a negative number, be sure to include a negative sign (−). When the price is $1.50 per slice, the profit-maximizing level of output is slices per day. Instructions: Enter your response rounded to the nearest penny (two decimal places). At the profit-maximizing level of output, the producer's profit is: $ per day.