The anticipated retail price of a stationary bike is $195 and the initial markup is 56 percent. Calculate the merchandise cost.

When the price is between AVC and ATC (ATC<p>AVC), then total revenue for the competitve firm

A Caterpillar tractor one of the largest farm machinery in the world has requested for your services on pricing policy for its product. One of the things the company would like to to know is how much a 5% increase in price is likely to reduce the firm’s sales. What could you require in order to advice?

Demand for an item is constant at 40 units a week, and the economic order quantity is calculated to be 100 units. What is the reorder level if lead time is constant at 4 weeks? What is the effect of adding some margin of safety and raising the reorder level by ten units? What happens if the lead time (a) falls to 2 weeks or (b) rises to 6 weeks?

Leopard golf clubs usually sell for $1300. At this price, the retailer can sell on average 20 sets per week. For every $50 reduction in price, sales of the golf increase by two sets per week. Similarly, for every $50 increase in price, sales decrease by two sets per week. Determine the optimum price to maximize revenue.

LawnTech sells its laser hedge trimmer at a price of $275, and estimates price elasticity of demand at -3.9 at this price. LawnTech is thinking about raising its price by +4.0%. By what percent will Quantity sold change, given this change in price? Report your answer as a percent. Report 25.5%, for example, as "25.5". Remember to report the sign of the change. Rounding: tenth of a percent. Your Answer: Answer

Happy Go Lucky Electric Company is the only company providing electric power to the city of Go Lucky. The accompanying graph depicts their marginal costs (MC), total costs (ATC), demand (D), and marginal average t revenue (MR). Move point E to the firm's profit maximizing price and quantity. At the profit maximizing point, what is Happy Go Lucky level of profit? 0 $150 $90 -$30 Price and Costs ($/unit) 10 9 8 7 6 10 4 3 2 1 0 0 5 10 15 20 25 30 35 MR MC 0 ATC D 40 45 50

The total amount spend on production of 500 machines are $100. The selling price of a machine is $ 25. Calculate the profit of the firm.

Your company makes a product, Widgex, that has no direct substitutes, currently popular, and very price inelastic. Identify possible reasons that will keep you from raising its prices to very high levels.

Conditions for market effiency