The dentist mark up her price over marginal cost

Assignment Help Business Economics
Reference no: EM13983906

A local dentist read an article published by the American Dental Association estimating that the elasticity of demand for the representative dentist's services is -2.5. How much should the dentist mark up her price over marginal cost?

Reference no: EM13983906

Questions Cloud

Policies redistributes income across generations : Explain how each of the following policies redistributes income across generations. Is the redistribution from young to old, or from old to young? a. an increase in the budget deficit b. more generous subsidies for education loans c. greater investme..
Find optimal number of bottles to package together for sale : Suppose a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3 per gallon. Find the op..
What is meant by the concept of substitutes for leadership : Define power from an organizational behavior perspective. What is the difference between power and influence? What are the six forms of position power and the four forms of personal power? Briefly describe each form. What is leadership and how does i..
How does affecting the nominal federal funds interest rate : The federal reserve has power to adjust the nominal federal funds rate of interest. How do they do this? How is this different from quantitative easing? How does affecting the nominal federal funds interest rate address recessionary gaps in the econo..
The dentist mark up her price over marginal cost : A local dentist read an article published by the American Dental Association estimating that the elasticity of demand for the representative dentist's services is -2.5. How much should the dentist mark up her price over marginal cost?
Advertisement would likely make demand for good : Other things remaining unchanged, advertisement would likely make demand for a good more price elastic. The cross price elasticity demand for a good with respect to the price of a complementary good is negative. With capital measured along the vertic..
Business with the intention of earning : PiR8 Systems has borrowed a sum of $2.5M from a bank at interest rate of 4.5%. The company also borrowed $0.5M from other sources at a interest rate of 4%. Additionally the owners have invested $2.5M in the business with the intention of earning 15% ..
Ratio between the price of labor and the price of capital : If the ratio between the price of labor and the price of capital (w/r) is smaller than the ration between the marginal product of labor and the marginal product of capital, the firm should hire more capital. Normally the ratio between the price of a ..
When a perfectly competitive firm is producing : When a perfectly competitive firm is producing at its profit maximizing level of output, its MR is equal to price and its MC while it may or may not be making an economic profit. The price a profit maximizing monopoly charges is always greater than i..

Reviews

Write a Review

Business Economics Questions & Answers

  How much must be deposited each month

How much must be deposited each month for 9 months at an interest rate of 9.6% per month to allow for a single withdrawal of $54,273.31 at the same time as the last deposit?

  Efficient means of setting optimal patent life

We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..

  What was the opportunity cost of ethanol in terms of bushels

In 2010, 40% of all U.S. corn production was used for producing ethanol, while 60% was used for consumption in or as food products. In 2011, a prolonged drought reduced the overall production of corn by 30%, from 10 million bushels to 7 million bushe..

  Freedom in their economic and political pursuits

Andrew belongs to a culture in which most people including Andrew have freedom in their economic and political pursuits. Further, this culture gives priority to Andrew's interests over the interests of the relevant social unit. Which of the following..

  Monopolists first order condition

Assume that the monopolist has a cost that is always increasing with the quantity produced: C0(q) > 0 for every quantity q. What happens to the monopolist's quantity when the price elasticity of demand is always less than or equal to 1? Justify your ..

  What is the mrp of labor equal to in this situation

What is the MRP of labor equal to in this situation? Assuming that Economan takes the price of labor as a given, what is the maximum daily wage that would make it in his best interest to hire this additional employee?

  How is unemployment calculated in other countries

Explain how the United States calculates unemployment and why many economist do not find this as a real economic indicator. How is unemployment calculated in other countries? Give two examples. What are your thoughts and ideas on this?

  Explain the public policy lifecycle utilizing public policy

Explain the Public Policy Lifecycle utilizing a public policy Discuss how the importance of developing a viable Policy Adoption and what policy makers need to consider when adopting new or amending existing policies.

  The economy is at full employment

The Economy is at full employment. Now the government want to change the composition of demand towards investment and away from consumption, without, however, allowing aggregate demand to go beyond on full employment. What is the required policy mix?..

  Consumers bundle includes two normal goods

A consumer's bundle includes two normal goods, good X and good Y. According to the income effect, a(n) ______ in the price of good X or ______ in the price of good Y will cause the consumer to buy less of good X.

  Show completely graph showing initial equilibrium wage

Over the Christmas Break, you are hired by Apple to help make the new iPad. Show completely labeled graph showing the initial equilibrium wage and quantity for the iPad labor market.

  Nominal interest rates fall during recession

Business firms become pessimistic about their future earning capacity as do banks. Nominal interest rates fall during recession.

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