ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 9, Problem 9P
To determine
The manner in which the firms make profit while practicing
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
For a cement firm, the total revenue for the previous month was $6300
The price per unit of cement is $30
What quantity would the firm have sold?
Subject: e
-x
230.
If the demand Curve is the form of P= 10e ? where P is the price and x is the demand,
what is the Price elasticity of Demand?
(a) Kx
(b) 는
(c) 5x
(d) None
Chapter 9 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Problem 03-06 (algo) You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Yand X is -1.8. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent? Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign. GAarrow_forwardthe graph shows the demand curve for curcus tickets the average total cost curve and the marginal cost curve??? :(( Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardA vegetable fiber is traded in the US, has the following domestic supply and demand for various price levels as shown: Price US Supply (Million kilograms) US Demand (Million kilograms) 3 2 34 6 4 28 9 6 22 12 8 16 15 10 10 18 12 4 (a) What is the equation for demand? What is the equation for supply? (b) At a price of $9, what is the price elasticity of demand? What is it at a price of $12? (c) Do you think the product demand is elastic or inelastic at $9 and $12 respectively?arrow_forward
- PRICE (Dollars per unit) 350+ 225 175) 50 0 Region Between Y and Z Between W and X Between X and Y Z True False X 28 36 QUANTITY (Units) For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. I 56 W Demand True or False: The slope of the demand curve is equal to the value of the price elasticity of demand. Elastic Inelastic Unit Elasticarrow_forwardQUESTION 3 Explain the term price elasticity of demand?How is it measured? If the price elasticity is -3 and RM 200 is the marginal cost of product X,what should be the optimal sale price? (Hint:apply the mark -up rule)arrow_forwardConfused on how to solve these problems correctlyarrow_forward
- Vdarrow_forwardQuestion 1 Explain how price elasticity of consumers in their 40’s would matter to marketing managers for two different service categories namely holiday packages for family and higher education for self.(400 -600 words)arrow_forward1. For a perfectly competitive firm, marginal revenue product is equal to: price minus marginal cost price times marginal revenue. price times marginal product. none of these. 2. An argument in favor of price discrimination is that this pricing strategy permits some consumers who otherwise would be excluded from a market to buy a good or service. (T/F) 3. Since World War II, the percentage of U.S. workers who are unionized has declined from about 86 percent to its current level of 60 percent. (T/F) 4. Which of the following statements is true? A monopsony is the only employer of a factor of production. A monopsony will pay workers a higher wage and employ fewer workers than a competitive labor market. A monopsony has a marginal factor cost curve which lies below its supply curve of labor. Unions are becoming a greater influence in American labor markets. All of these. 5. The profit maximizing or loss minimizing quantity of output…arrow_forward
- QUESTION TWO A. Empirical estimates suggest the following price elasticity of demand: 0.6 for Coca Cola; 4.0 for foreign vacation travel; and 0.2 for food. Úsing the determinants of price elasticity of demand, explain why each of these commodities would have these coefficients elasticity. B. Lisa Gee Ghana Ltd., is the main sales agent of Infinix phones in Ghana. The economist of this enterprise has estimated the demand function for the firm's products per week to be of the form: Q = 445 - 2.5P - 81 + 2.5Pr where; Q is the quantity demanded of Infinix phones, P. is its own-price, Pr is the price of a related good (Tecno Phones) and I is income. Giventhat Pi = 10, Pr = 5 and I = 40, use the above information to: i. Determine the quantity demanded of Infinix phones per week and compute the own-price elasticity of demand for Infinix phones and interpret your results. ii. Based on your answer in (i), what pricing policy would you recommend for the firm in order to maximize its total…arrow_forwardExplain Law of Demand. (500 words)arrow_forwardJohnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. His record company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 5,000 increase in the quantity sold. Price Number of CDs Total Revenue Marginal Revenue (Dollars) (Dollars) (Dollars) 30 10,000 28 15,000 26 20,000 24 25,000 22 30,000 20 35,000 Profit is maximized at a quantity of $? CDs and a price of $ ? . This results in a profit of $ ? If you were Johnny's agent, you would advise Johnny to demand a recording fee of from the record company. $ ?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher: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