When sales are being maximized, it is true that O demand is elastic. O profits must also being maximized. O profits could be increased by reducing the level of production. O demand is relatively inelastic. owners and commission-based employees will be equally satisfied.
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- An isoquant represents all inputs L,K that produce a given q. all bundles LK that provide the firm with the same level of happiness. the amount of capital needed to make up for the loss of one laborer and continue to produce output q. O lager amounts of production it moves north east. transitive, monotonic, and complete preferences of the firm.You are the manager of a train company. Recently total sales have been a bit low and you are now considering means to give sales a boost. Market research has shown that currently the price of train tickets is historically low. Market research has also shown that the demand curve for train tickets is downward sloping. You may assume that your company is not a price taker on the market. 1.One of your colleagues has suggested that it is important to lower the price of train tickets. In that case, she argues, the demand will increase. Do you agree with her? Explain why. 2.She continues her argument by concluding that if the demand goes up, the total value of sales of train tickets should therefore increase. Do you agree with her? Explain why.In a short-run production process for computer software, the average total cost (ATC) is increasing while the marginal cost (MC) is rising as output is increased. Thus, we can expect that the marginal cost (MC) is; between the average variable (AV) and average total cost curves (ATC). O b. below average fixed cost (AFC). C. above average total cost (ATC). O d. below average total cost (ATC).
- A profit-maximizing firm will: O reduce employment if VMPL exceeds MCL. O expand employment if the VMPL exceeds MCL. O reduce employment if VMPL equals MCL. O expand employment if VMPL equals MCLIn Autarka there are 9600 people who like to visit an amusement park. Each of theseconsumers wants to visit one park once. The consumers' homes are evenly spaced acrossthe island, and they each suffer a disutility of $24 for each kilometre they travel to reachan amusement park. With their current technology, it costs an amusement park $12 for each customer theyhost. At present, the equilibrium price for an amusement park ticket is $36, and each firmhas a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Derive an expression for the location of the indifferent consumer. Use PA to represent the price of admission at Alfonso's Wonderland, and PB to represent the price of admission at Bernice's Wild Rides.hand written asap
- In Autarka there are 9600 people who like to visit an amusement park. Each of theseconsumers wants to visit one park once. The consumers' homes are evenly spaced acrossthe island, and they each suffer a disutility of $24 for each kilometre they travel to reachan amusement park. With their current technology, it costs an amusement park $12 for each customer theyhost. At present, the equilibrium price for an amusement park ticket is $36, and each firmhas a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Find the profit function for Bernice's Wild Rides. Assuming that Bernice's marginal cost is $12.FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial priceJason Stilton is the chief executive officer of RightLiving a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors for 85% of the value of the future benefit. The patients recieve the cash to use for medical and other expenses and the investors are guaranteed a positive return on thier investment. The diffreance between the purchace and sale prices is the RightLivinf Profit. Stilton is aware that some sick patients may obtain insurance policies through fraud (Not revealing thier illness on the insurance application). An insurance company that discovers such will cancel the policy and refuse to pay. Stilton beleives that most of the policies he has purchased are legitimate, but he knows some are probably not. Question Using IDDR approch, discuss the decision process Stilton should use in deciding whether to disclose the risk of fraudulent policies to potential investors.
- Competition means that Multiple Choice O O sellers can manipulate market price by causing product scarcities. there are independently acting buyers and sellers in each market. a product can be purchased at a number of different prices. there is more than one seller in a market. 18 11,027 AUG 24 .... < Prev Saved 5 of 12 átv # Next NYour manager is only concerned with selling her product for the highest price possible under profit- maximizing conditions. In which of the two markets should she operate? • Market 1: - Demand:Q=100-2P - MarginalCost:MC=15 • Market 2: - Own-PriceElasticity:εQ,P=-2.5Note:Thisimpliestheown-priceelasticityis constant at all points. - MarginalCost:MC=15 a. She should operate in Market 1, as it has the highest profit-maximizing price. b. She should operate in Market 2, as it has the highest profit-maximizing price. c. She is indifferent, as each market has an equal profit-maximizing price.Please Answer with the step from sub parts 4 a,b,c. I need in 30 minutes thank u