Jazmah Industries received a patent on their new ozone generator. The product will sell for $471, and it will clean the air inside a home and eliminate 95% of the pollution particles inside the home. Jazmah's market research shows that there are 111 million homes in North America. The firm believes an aggressive marketing campaign focusing on heavily polluted regions of the country will allow them to get about 30% of this market. Their research shows that about 43% of the houses are in heavily polluted areas. How many houses are in Jazmah's target market? $674, 424,900 $ 6, 744, 249, 000 $4, 242, 275, 000 $4, 709, 314, 000 $8, 730, 854, 000

Jazmah Industries received a patent on their new ozone generator. The product will sell for $471, and it will clean the air inside a home and eliminate 95% of the pollution particles inside the home. Jazmah's market research shows that there are 111 million homes in North America. The firm believes an aggressive marketing campaign focusing on heavily polluted regions of the country will allow them to get about 30% of this market. Their research shows that about 43% of the houses are in heavily polluted areas. How many houses are in Jazmah's target market? $674, 424,900 $ 6, 744, 249, 000 $4, 242, 275, 000 $4, 709, 314, 000 $8, 730, 854, 000

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

true or false The oligopolist reduces the price of the good by 10%, but the competitors reduced their prices by 8%. As a result, the oligopolist only attracts only an additional 5% consumers from his competitors, This will reduce the total revenue of the oligopolist.
A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P2. Calculate the profit maximising output produced and price charged in each country by the price-discriminating monopolist and comment in which country the price charged is higher and by how much.
You have three tickets to a Celtics game on a night that you are going to be out of town (so the value of unsold tickets is zero to you). There are only four possible buyers of a Celtics ticket. The table below lists the respective reservation prices of these four possible buyers: Customer Reservation Price 1 $25 2 $35 3 $50 4 $60 You consider inviting bids using an English auction to sell your tickets. How much total revenue can you generate using the English auction mechanism from the sale of the three tickets? [Bids can be made in increments of $1.00]
When generic versions enter the market after the patent on a branded drug has expired The branded drug increases market share and price The branded drug increases market share and decreases price The branded drug decreases market share and increases price The branded drug decreases market share and decreases price
A monopoly produces a good with a network externality at a constant marginal and average cost of c = $2. In the first period, its inverse demand curve is p 14-1Q. In the second period, its inverse demand curve is p=14-1Q unless it sells at least Q = 8 units in the first period. If it meets or exceeds this target, then the demand curve rotates out by a (it sells a times as many units for any given price), so that its inverse demand curve is p=14- - 1/10. The monopoly knows that it can sell no output after the second period. The monopoly's objective is to maximize the sum of its profits over the two periods. For what values of a would the monopoly earn a higher two-period profit by setting a lower price in the first period? . (round your answer to two decimal places) If a is
In Fruitland, strawberries are sold in 4-litre baskets to customers on a "pick-your-own" basis. There are 2 farmers who sell strawberries: Mickey and Kit. There are no costs of supplying strawberries for sale for either farmer, so each has MC = ATC = 0. Profit therefore is simply TR. Market demand for strawberries is given in the accompanying table. If the market were served by a monopolist, the quantity traded would be 125 baskets, the price per 4-litre basket would be $7.50, and the profit for the firm would be $937.50. If Mickey and Kit decided to collude, each would have an individual quantity supplied of 62.5 baskets and each would have profits of $468.75. Suppose Mickey and Kit agree to split the monopoly outcome. Kit, acting in her own self-interest, realizes that she can cheat and supply 87.5 baskets; when she does, Kit's profits are $525.00 and Mickey's profits are $375.00. Mickey decides to retaliate and increases his supply to 87.5 baskets too; when he does, Kit's profits…
Consider a monopolist selling a product with inverse demand of Pp-12-Q. The firm currently has production costs of C(q)=5+6Q. The firm has the option of attempting to develop a new technology that would lower production costs to C(q)=5+2Q. Research and development costs are $4 if undertaken and must be incurred regardless of whether or not the new technology is "successful" or a "failure." This means that in case of failure, the firm still needs to produce with C(q)=5+6Q but incurs $4 in sunk costs. If the firm attempts to develop the new technology, the innovation will be successful with probability p=3/8. Throughout your analysis, restrict attention to the profit/loss of the firm in only the current period (i.e., assume that the firm will not be operating in any future period). Assume that the monopolist is risk averse, what would be the expected utility of perfect information [assuming that U(Payoff)=sqrt(Payoff)]? 2.75 3.0 3.25 3.5 O O O