Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 1.2P
To determine
The economic profit of fitness trainer.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose you come home from having earned your degree at CSUEB. Your parents own a localchain of fitness clubs that have a great reputation. Your father uses cost-plus pricing, and at themoment he is charging $200 for an annual membership, and is currently selling 800 memberships.Your parents are quite happy with their current markup above average costs
You suspect that perhaps they could be doing better and be more profitable. After consulting with the club’s manager, you learn that the cost function for annual memberships is given by c(Q)=1000+20Q+(1/20)Q2 .Further, they tell you that the own price elasticity of demand is approximately -2.5
Are your parents choosing a membership price that is maximizing profit? If not, what would yousuggest – increase the price or reduce the price? Explain
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
Mr. Nyugen Ho is a Vietnamese entrepreneur who started a clothing factory in Vietnam. After two years of good business within the country's local markets, there was a huge demand for his clothes in the international markets like Canada, Australia, Japan, United States and France. But he didn't want to sell his products outside Vietnam - he has never travelled outside his country as there was always a fear of losing face (fearing that people will not respect him and will hate him for the race he belongs to). He always felt that if he set his business outside his country, he would feel unwelcomed and that his business would be attacked and exploited. Moreover, he felt that he would feel alienated (feeling different/lonely) in new surroundings. What problem is Mr. Nyugen experiencing?
A.Stereotyping b.Ethnocentrism c.Individualism O d.Xenophobia
Chapter 7 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
Similar questions
- Michelle went to Baguio and bought 20 jars of strawberry jam for P3,500.00with 1 5% discount. When she got back to Manila, she sold 10 of the jars for a total of P1,800.00and the rest as P185.00 each. How much profit did Michelle gain?arrow_forwardPlease answer everything in the photo.arrow_forwardTammy quit her job as a math teacher making $70,000 per year to start her own online business. The first-year revenue totaled to $200,000. During the first year of online business, Tammy paid $50,000 for the office rent and $20,000 for utilities and supplies. What is the amount of economic profit generated from Tammy’s online business?arrow_forward
- Uncertain how to solve these sets of problemsarrow_forwardYou are the product development manager of a company that is going to launch a new detergent against its competitors Ariel, Surf excel and Brite. How will you segment your product mention the classification & explain.arrow_forwardA discount shoe store always runs a ’buy one, get one free (limit one free pair per customer)’ campaign. A customer asked a clerk, if he would sell her one pair for half price. The clerk answered, ”I’m sorry, I can’t do that.” but when the customer decided to leave the store, the clerk hastily offered, “However, I think I can give you a 40% discount on any pair in the store.” Assuming the consumer has $200 to spend on shoes (X) or all other goods (Y ), and that shoes cost $100 per pair: a. Illustrate the consumer’s opportunity set with the ”buy one, get one free” deal and with a 50 percent discount. b. Why was the 40 percent discount offered only after the consumer rejected the ”buy one, get one free” deal and started to leave the store? c. Why was the clerk willing to offer a ”buy one, get one free” deal, but unwilling to sell a pair of shoes for half price?arrow_forward
- What does a non-profit company need for a social media manage that is different that for a regular for-profit company? (Select all that apply.) Group of answer choices 1.A large social media budget 2.None of these 3.A smaller social media presence 4.A social media generalistarrow_forwardV1arrow_forwardThe following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 8 60 40 20 0 mớ H + 0 9 18 27 36 45 54 63 72 81 QUANTITY (Bippitybops per day) * Demand 90 B 99 108 Total Revenue (?)arrow_forward
- O all of the above A good idea when delaing with a company you've never heard of before would be to * O study its advertising or other marketing materials carefully expect that it will confirm to teh same standards of reliability as companies you do know O recognize that new companies come along all the time check it's reputation through family, friends, or agencies such as Better Business Bureau A wise plan for budgeting your money is to * 1pc avoid writing a budget down because it will change O allow no money for entertainment or recreation O plan to save a given percentage of your income first buy things that you want first so that you can afford themarrow_forwardThe following graph illustrates the weekly demand curve for motorized scooters in Roanoke. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per scooter) 260 240 220 200 180 160 140 120 100 80 60 40 20 0 0 9 18 27 A X B Demand 36 45 54 63 72 81 QUANTITY (Scooters) 90 99 108 117 Total Revenue ?arrow_forward1arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning