QUESTION 6 he cross-price elasticity of demand for the products of monbpolistically compotitive firms is O The same as in perfect competition. O Low. O An indication that most of the products are complementary goods. O Very high.
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- Assuming you are the managing director of a firm that produces three goods: A, Band C. The price elasticity of demand for A is 1.2, for B it is 1.00 and for C it is 0.75.It is known that he firm is experiencing serious cash flow problems and you have toincrease total revenue as soon as possible. If you were in a position to set the pricesfor these goods, what would be your pricing strategy for each productHow 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 $2.00 8 161.i) Assuming you are the managing director of a firm that produces goods: A,B and C .The price elasticity of demand for A is 1.2, for B it is 1.oo and C is 0.75. It is known that he's firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible. If you were in a position to set the prices for these goods, what would be your pricing strategy for each product ii) price falls from N$ 16 to N$ 12 per bottle and demand rises from 200 to 300 per bottle.calculate the PED using midpoint formula Output prices average (total)cost Total cost marginal cost Total profit/loss 10 10 -108 20 10 4 -48 30 10 5 3 40 10 6.20 40 50 10 8 60 60 10 10 60 2. i) fill in the gaps ii)in which market structure doess Johnson Electronics (Pty)Ltd operate? iii)what level of output maximizes the firms profit
- Vik and Fleet produce trainers in the sports-shoe market. For one of their main productsthey have the following demand curves: Vik PV =175 - 1:2Qv, Fleet Pf = 125 - 0:8Qfwhere P is in Rs. and Q is in pairs per week. The firms are currently selling 80 and 75 pairsof their products per week respectively.a. What are the current price elasticities for the products?As competitors enter a market, demand becomes more meaning the demand curve shifts and becomes O inelastic; out; flatter O clastic: in: flatter O inelastic; in: steeper O elastic; out: flatterExplain the type of pricing strategy that you as the manager of a company would implementfor Good X and Good Y with the following price elasticity of demand co efficients. Usediagrams to motivate your answer.a). Good X: 2.3 b). Good Y: 0.6
- only typed answer The elasticity of demand for a firm’s product is -2.5 and its advertising elasticity of demand is 0.2. a. Determine the firm’s optimal advertising-to-sales ratio. Instruction: Enter your response rounded to two decimal places. b. If the firm’s revenues are $40,000, what is its profit-maximizing level of advertising?Refer to the attached Figure Section 2 Midterm 1 Graph 2. What is the price elasticity of demand from point B to point C. usling the midpoint method? Section 2 Midterm 1 Graph 2 daox O A. 1.00 O B. 0.50 O C. 0.75 O D. 1.30 Reset Selectionprice S-. amd n.ma 20 18 16- 14- 12 10 8. 6. 4 TR 1 2 3 45 6 7 89 10 Quantity Demanded Click Save and Submit to save and submit. Click Save All Answers to save all answers. Total Revenue 2.
- Study Tools ins ess Tips ss Tips PRICE (Dellars per engine) 288 RSS #RR 100 50 30 20 10 MO 0 0 10 ATC MR Demand 20 30 40 50 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unt Cost Decause this market is a monopolistically competitive market, you can tell that it is in long-run equilibrum by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimumGarry Petbarn is currently trading in a market where they face an own-price elasticity of demand which is -1.2. Assuming Garry's Pet Barn seek to maximise their profits, what would be your advice to the company? Explain clearly how following your advice could impact on their profits. No calculations are requiredApple recently launched Apple IPhone 12 Pro. Even though the price of this model is very high but demand for it remains high. Which of the following factors is keeping the demand high despite the price is high? a. Taste and fashion O b. Advertising C. Price of substitute product O d. Price of complimentary product
