At what price will revenue be maximum

Assignment Help Business Economics
Reference no: EM131112467

The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 98e−3p2 + p, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥700. E = Incorrect: Your answer is incorrect. Interpret your answer. The demand is going Correct: Your answer is correct. by % per 1% increase in price at that price level. Thus, a large price Correct: Your answer is correct. is advised. (b) At what price will revenue be a maximum? hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per month

Reference no: EM131112467

Questions Cloud

What happens to capital per worker and output per worker : What happens to capital per worker and output per worker if machines begin depreciating at a faster rate than they once did? Use a graph to help you discuss your answer. Describe what will happen to growth in the short-run and the long-run
Governing demand to each firm as function of two prices : Consider the horizontal quality model on the unit interval from 0 to 1. There are N consumers located uniformly along the interval. There are two firms, with zero marginal costs, initially located at 0 and 1. If the firms sell to the whole market, de..
Suppose that the market demand for monopolist good : Suppose that the market demand for a monopolist's good is given by the following demand function: P=150 - Q. In addition, suppose that the firm's total cost function is TC = 50 +20Q. Finally suppose that the firm utilized a uniform pricing rule. What..
Chocolate is the rest of the economy : The price of beer rose by 6%, the price of pizza rose by 2.7% and the price of chocolate did not rise at all. Also, suppose that beer preresents 8 percent of the economy and pizza represent 31 percent. Chocolate is the rest of the economy. What was t..
At what price will revenue be maximum : The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 98e−3p2 + p, where q is the demand in monthly sales and p is the retail price in hundreds of yen. Determine the price elasticity of demand E when the retail pri..
Equilibrium price if both firms only sell to part of market : Consider the horizontal quality model on the unit interval from 0 to 1. There are N consumers located uniformly along the interval. There are two firms, with zero marginal costs, initially located at 0 and 1. Solve for the equilibrium price if both f..
Firms constitute horizontal-vertical or conglomerate merger : Would integration between the following types of firms constitute a horizontal, a vertical, or a conglomerate merger?
Computer firms build more manufacturing firms : What effect on market labor in tablet company manufacturing industry if Congress bought more tablets for US college students, more college students major in engineering and computer science, and computer firms build more manufacturing firms?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Find average growth rate for each country over that period

Economic growth rates vary greatly from country to country. Look at the experiences of the United States, Japan, Ethiopia, and China over the last twenty years. Find the average growth rate for each country over that period. What are some of the diff..

  Do the hold out values fall within the forecast

Do the hold out values fall within the forecast 95% confidence limits?

  How much would the company have to invest now at interest

How much would the company have to invest now at an interest rate of 3% per year to sufficiently provide for the annual payments, if the first payment will begin 4 years from now? Specify answer to nearest cent

  Why is spending more on healthcare different

US citizens spend more on iphones/smartphones than the citizens of other countries, yet this type of spending is seldom described as a problem. Why is spending more on healthcare different?

  Replenishment system illustrates a tactical utilize

Do recent economics actions justify greater regulation in the financial services industry Wall Marts continuous replenishment system illustrates a tactical utilize of information services.

  The black death

The Black Death: In the middle of the fourteenth century, an epidemic known as the Black Death killed about a third of Europe’s population, about 34 million people. Use the production model to explain why wages might have been higher.

  Employment fluctuates less over the business cycle

There is the long debate on the Frisch-Elasticity being the driver of unemployment over the business cycle. Women have a bigger elasticity than men, yet their employment fluctuates less over the business cycle.

  What would be the effect of this policy

it behooves government to impose below market price ceilings on consumer goods, thereby increasing consumers surplus and making everyone better off." What would be the effect of this policy?

  Foreign exchange traders go into the market to support

When the Bank of Canada's foreign exchange traders go into the market to support the Canadian dollar, they trade US dollars from Canada's reserves for Canadian dollars that other people are trying to sell. The Canadian cash resulting from this transa..

  The natural rate of unemployment never changes

Which type of unemployment is most likely to fall as a result of government policies that stimulate aggregate demand? The natural rate of unemployment never changes. Changing the discount rate is a tool of fiscal policy. Government demand-management ..

  Decided to reduce consumption and increase investment

Suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth? What groups in society would benefit from this change?

  Microsoft wants to sell more copies

Microsoft wants to sell more copies the additional income from each additional copy it sells.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd