EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 6SP
(a)
To determine
Determine the total revenue at each
(b)
To determine
Identify the level of profit and profit-maximizing price of the record company.
(c)
To determine
The signing fee request by an agent for The Incentives from the record company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Dave's Donuts sold 1,000 donuts. Total revenue was $400, and the cost of producing the 1,000 donuts was $300. What is the profit for Dave's Donuts?
$1,000
$500
$100
$400
Think about the following categories: number of firms, type of product, pricing, market knowledge, entry and exit in the market, and the elasticity of the product. Describe any changes in these categories in the latter half of the 20th century.
For the Water Utility, it costs $50,000 per month to lease the land and equipment for the water treatment facility and pumping station and maintain the water supply system. It costs $10Q to deliver water to households (Q is thousands of gallons). The town’s monthly demand for water is QD = 5000 – 100P, where P is price.
Calculate the quantity of water, the price, total revenue, total cost, total profit, marginal revenue, marginal cost, the markup, the profit margin, and marginal profit at unregulated price and quantity of water. What price per gallon will they charge?
Chapter 10 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
Knowledge Booster
Similar questions
- Question 18 Alex Potter owns the only well in a town that produces clean drinking water. He faces the following demand P=200-2Q, and marginal cost MC=50+2Q, marginal revenue MR= 200-4Q curves. In order to maximize profits, Alex should charge a price of $150 at the profit maximizing quantity with a marginal revenue equal to $150. $100 at the profit maximizing quantity with a marginal revenue equal to $150. $100 at the profit maximizing quantity with a marginal revenue equal to $100. $150 at the profit maximizing quantity with a marginal revenue equal to $100. O Oarrow_forwardHelparrow_forwardhe company can produce the CD with no fixed cost and a variable cost of $5 per CD.a. Find total revenue for quantity equal to 10,000, 20,000, and so on. What is the marginal revenue for each 10,000 increase in the quantity sold?b. What quantity of CDs would maximize profit? What would the price be? What would the profit be?c. If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company? Why? Johnny Rockabilly has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows:PriceNumber of CDs$2410,0002220,0002030,0001840,0001650,0001460,000The company can produce the CD with no fixed cost and a variable cost of $5 per CD.arrow_forward
- You are an owner of a local Toyota dealership. Your dealership earned record profits of 13 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for Toyota cars is -1.5. The marginal cost of a car is 120000. What price should you charge for a Toyota car if you expect to maintain your profits?arrow_forwardWhich of the following is necessary for a firm to practice price discrimination? Group of answer choices a. The firm is a member of a cartel. b. The demand curve for the product is perfectly inelastic. c. The firm can prevent resale of its goods. d. The government strictly enforces antitrust laws. e. The demand curve for the product is perfectly elastic.arrow_forwardThe demand curve for product a is given as Q = 2000 - 20P. a. How many units will be sold at $10? b. At what price would 2,000 units be sold? 0 units? 1,500? c. Write equations for total revenue and marginal revenue (in terms of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue? e. What is the point elasticity at a price of $70? f. If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now? g. At what price would elasticity be unitary?arrow_forward
- A substantial increase in buying power is a contemporary marketing phenomenom that has to be contended with marketes. Using a sector of your choice, explain how you will manage the situation.arrow_forwardUse the table given to answer the questions. Demand for Air Fryers at Ally's shop Price (P) Quantity (Q) 140 110 80 50 I 2 3 4 Total Revenue 140 220 240 200 Marginal Revenue 140 80 20 -40 What is the Output Effect of decreasing the price of air fryers from $110 to $80? $ 20 Incorrect What is the Discount Effect of decreasing the price of air fryers from $110 to $80? $ 60 < Feedback Your answer to the first blank is incorrect. To find the output effect, you have to calculate the increase in revenue coming from the sale of that additional unit. Macmillan Learningarrow_forwardWhich of the following gives the customers better products that are not offered by other competitors? Select one: a. Competitive advantage b. Branding c. Advertisements d. Marketing Strategyarrow_forward
- MIcro: The company “Mike Broonie” operates in the market of monopolistic competition. Just now, the company weekly produces and sells 100 units of pillows for £12 each. The average total cost to produce the pillows doesn’t depend on the output, being £10 per unit. Having evaluated the price elasticity of demand for its product, the company concluded that demand is inelastic at the moment. a. What indicator characterizes the price elasticity of demand? What formula (or formulas) one can use to calculate this indicator? Choose any number for this indicator that, under the conditions specified in the case, could characterize the price elasticity of demand for the company “Mike Broonie”. b. Imagine that the owner of the company wants to increase the price of the company’s product. How will it affect sales, revenue, and profit (will each of these indicators increase, decrease, or remain the same)? Give here theoretically substantiated forecast. To increase the number of points…arrow_forwardSoftware Plus has a patent on software that estimates economic damages for clients involved in maritime injury lawsuits. Consumer demand is Quantity = 287.5 - 12.5P. Software cost $985. Producing a copy of the software is $11 per unit. a. How many copies of the software should I attempt to sell? At what price should I sell it? How much profit would I make?arrow_forwardThe following graph shows Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. Use the black point (plus symbol) to indicate Sparkle's profit-maximizing output and price. True or False: Sparkle's profit is zero. True Falsearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningManagerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning