User Account

All Pages

Charging the optimal price for the product

Assignment Help Macroeconomics
Reference no: EM131293391

Suppose a firm has a constant marginal cost of $12. The current price is $25 and at that price it is estimated that the price elasticity of demand is -4.0.

a. Is the firm charging the optimal price for the product? Why?

b. Assuming the elasticity remains at --4.0 what is the optimal price?

Reference no: EM131293391

Questions Cloud

Net after tax annual benefit or cost of purchasing : A chemical recovery system costs $30,000 and saves $5,280 each year of its life. The salvage value is estimated at $7,500. The after-tax MARR is 9%, the CCA rate is 20% and taxes are at 45%. What is the net after tax annual benefit or cost of p..
Create quotation system and generate quotation to email : Create Quote Tracker (using Access FORM) - Create Job Tracker (using Access FORM) and create Quotation System and generate quotation to email it to customer (using Access FORM)
How the internet may affect public opinion in a positive way : Write a paper that summarizes how the Internet may affect public opinion in a positive or negative way with regards to brand reputation. Discuss the current state of public opinion using the Internet as your research tool.
What sample size do you need : For an H with dvc = 10, what sample size do you need (as prescri bed by the general ization bound) to have a 95% confidence that your generalization error i s a t most 0.05?
Charging the optimal price for the product : Suppose a firm has a constant marginal cost of $12. The current price is $25 and at that price it is estimated that the price elasticity of demand is -4.0. a. Is the firm charging the optimal price for the product? Why?
Is there a moral problem presented in the scenario : Is there a moral problem presented in the scenario? If so, what is it?Does policy or law dictate an appropriate response, or does it require that professional discretion be applied?What criteria (considerations), principles, and consequences should g..
Evaluate influence that corporate social responsibility has : Identify the potential ethical implications associated with this decision. Discuss the application of critical thinking to corporate social responsibility. Evaluate the influence that corporate social responsibility has on the organization.
Find the best hypothesis that a p proximates f : For each of the following learning models, find the best hypothesis that a p proximates f in the mean squared error sense.
Write a paper about world meteorological organization : Write a paper about World Meteorological Organization and also Expalin in detail.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Single price profit maximizing strategy

Explain a pricing strategy which would increase profits compared to a single price profit maximizing strategy. Be sure to include a graph which explains your demand, marginal revenue, and marginal cost.

  Elucidate why the mp-p relation is deficient

Elucidate why the MP/P relation is deficient as the sole mechanism for determining the optimal level of resource.

  Example of good or service that is intangible-not shareable

Give an example of a good or service that is “intangible” (not a physical commodity) and is NOT shareable. Explain briefly why it cannot be shared. Give an example of a good or service that is shared in the production of the good or service that you ..

  Comput stage in the lifecycle for each countrys economy

Determine the stage in the lifecycle for each country's economy. Develop notes for the Real-Time Project that will help Bedford Con Industries expand partnership and operations in the European Union.

  Below you will find four different scenarios each one

below you will find four different scenarios. each one represents a different quarter of the year with the initial

  Annum of paying by monthly installments

Mr Ngoe valued his car at £10,500 and insured it for a net annual premium of £855, which includes a no claims discount of 55%. (a) Calculate the gross annual premium.

  Write a python program that replaces

Python Assignment: Write a python program that replaces text in a file. Your program should prompt the user to enter a filename, an old string, and a new string.

  Benefits and marginal costs of gasoline consumption

"Let the marginal benefits and marginal costs of gasoline consumption (where Q=gallons) be:

  Calculate the nominal gdp

Calculate the nominal GDP in 2005 and 2006 Tropic Republic and calculate the GDP in 2006 using the method of the base year prices.

  Nominal holding periodrate of return

a. If you buy the bond for $920, what is its nominal yield to maturity? b. What is the bond's ex-ante real yield to maturity, if the inflation rate is expected toaverage 2% per year over the next 3 years? c. Suppose that after 2 years, you sell the..

  Keynesian model and the ad-as model

1. An important similarity between the Keynesian model and the AD/AS model is that:

  The world price of zinc has increased to the point where

the world price of zinc has increased to the point where moth balled zinc mines in east tennessee have been reopened

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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