What is marginal revenue

Assignment Help Managerial Economics
Reference no: EM131411745

Choose the correct multiple choice answer for each of the following questions. Provide a brief (40-50 words) answer to defend your choice. If the question is quantitative, show each step of your computations.

1. The Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues. The Interior Department must believe that:
A. Demand is elastic.
B. Demand is inelastic.
C. Demand is unitary elastic.

2. If the price elasticity of DVD recorders is -0.325 and price decreases 20%, what happens to the quantity of DVD recorders demanded?
A. Quantity decreases by 26%
B. Quantity decreases by 15%
C. Quantity increases by 6.5%
D. Quantity increases by 21%

Questions 3 through 9, refer to the following table showing a demand schedule:
Price Quantity Demanded
$400 600
$350 1200
$200 1800

3. If price rises from $200 to $350, what is the elasticity of demand over this range?
A. -0.73
B. -1.0
C. -1.17
D. -0.44
E. -3.0

4. As output increases from 600 to 1,200 what is marginal revenue?
A. $25
B. $300
C. $600
D. -$25
E. -$600

5. If price falls from $350 to $200,
A. Arrows representing the price and quantity effects both point down.
B. An arrow representing the price effect points down and is longer than an arrow for the quantity effect.
C. An arrow representing the price effect points down and is shorter than an arrow for the quantity effect.
D. Arrows representing the price and quantity effects both point up.
E. Total revenue moves in the same direction as the arrow representing the quantity effect.

6. If price rises from $350 to $400, what is the elasticity of demand over this range?
A. -0.625
B. -1.0
C. -1.67
D. -0.07
E. -5.0

7. As output rises from 1,200 to 1,800, what is marginal revenue?
A. $25
B. $50
C. $400
D. -$100
E. -$75

8. If price falls from $400 to $350,
A. Arrows representing the price and quantity effects both point down.
B. An arrow representing the price effect points down and is longer than an arrow for the quantity effect.
C. An arrow representing the quantity effect points up and is shorter than an arrow for the price effect.
D. Arrows representing the price and quantity effects both point up.
E. Total revenue moves in the same direction as the arrow representing the quantity effect.

9. If price falls from $400 to $350,
A. Arrows representing the price and quantity effects both point up.
B. An arrow representing the price effect points up and is shorter than an arrow for the quantity effect.
C. Total revenue moves in the same direction as the arrow representing the price effect.
D. The arrow representing the price effect points down and the arrow representing the quantity effect points up.
E. Both c and d

10. Suppose that a store's management is considering a plan in which customers who donate blood get a $20 gift card. If both store REVENUES and blood donations (i.e., number of pints donated) rise with this plan, which of the following is true? Be sure to explain your reasoning.
A. The demand for blood is price elastic.
B. The demand for blood is price inelastic.
C. The demand for the store's products is price inelastic.
D. The demand for the store's products is price elastic.

Verified Expert

The assignment deals with the concepts of elasticity and revenues. It uses the concept of price effect as well as quantity effects. All the questions are in the form of multiple choice. The marginal revenue is also a concept used in the assignment. Elasticity is measured as an responsiveness of quantity demanded in comparison to price.

Reference no: EM131411745

Questions Cloud

Write statements as conditional probabilities using notation : Define appropriate events, and write these statements as conditional probabilities, using appropriate notation.
Describe the major concepts of the theory : Describe the major concepts of the theory. How are they defined? (theoretically and/or operationally) Is the author consistent in the use of the concepts and other terms in the theory
Are her age and her fertility status independent : Refer to given Exercise. Suppose that an American woman is randomly selected. Are her age and her fertility status independent? Explain.
Gioia identifies for neophyte decision makers : Describe the four-key decision- making lessons that Gioia identifies for neophyte decision makers. Discuss how you expect or intend to use these four lessons in your own career.
What is marginal revenue : As output rises from 1,200 to 1,800, what is marginal revenue - If the price elasticity of DVD recorders is -0.325 and price decreases 20%, what happens to the quantity of DVD recorders demanded?
Which method of finding probabilities was used : Refer to given Exercise. Which method of finding probabilities do you think was used to find the "90 percent chance" and "37 percent chance"?
Discuss the data and information that you have collected : Give a brief explanation of your chosen topical area.Based on your chosen topic, define the problems and challenges that exist in crime and criminology. Explain the historical issues that have contributed to the problems and challenges.
Who benefits and who loses from quote-matching : You have incurred a medical bill of $10,000. Your plan has a deductible of $1,000 and coinsurance of 20 percent. How much of this bill will you have to pay directly? What are the fundamental differences between HMO and PPO plans? Who benefits and who..
Develop a business plan for a product of your choice : Develop a business plan for a product of your choice. Prepare a two to three page, double spaced, Times New Roman 11-point font, MS Word document detailing your plan.

Reviews

inf1411745

3/15/2017 5:22:34 AM

Can you please tell the expert thank you such a great amount for the paper he prepared. It was exactly what I required! It was perfect...He secured all ranges simply right.

Write a Review

 

Managerial Economics Questions & Answers

  How does this model explain price rigidity in oligopoly

What is the basis of the kinked-demand model? Explain the reason for the gap in the oligopolists marginal-revenue curve. How does this model explain price rigidity in oligopoly?

  Managerial economics test

Managerial economics test- the managerial economics test for  please solve everything and show all work for your work please

  Understanding of the role of the business firm in society

Prepare a 2-3 page paper using APA format discussing the Milton Friedman Goal of the Firm. Does this goal still apply to our understanding of the role of the business firm in society?

  How does each of the following factors affect the is curve

How does each of the following factors affect the IS curve? Start your argument from the diagram of Id-Sd and show how the associated change will affect IS curve.

  How does each factor influence the managers choice

What are the two primary factors that influence a firm manager's choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager's choice.

  Determine price of the land parcel

Assume that the current market rate of interest is 10%. The market rent on a parcel of land is $6,000 per year. A 10% land tax is imposed. As a result of the tax,

  Problems of relying on automatic fiscal stabilizers

What are the problems of relying on automatic fiscal stabilizers to ensure a stable economy at full employment?

  Part time employees payroll

Pratt or Julian Barbeque is a small restaruant in Columbia, Missouri. They employ 4-part time employees earning $48 per day.

  Did communist leaders favor these principles

What impact did Gorbachev's ideas of glasnost (openness), perestroika (restructuring), and demokratizatsiia (democratization) have on Communist society?

  Is the firm necessarily making economic profits and explain

The company sells its beer at a premium and reports a large profit each year. Is this firm necessarily making economic profits? Explain.

  What is pccorps capital productivity

What is PCCorps capital productivity? This must be done in Excel and formula showed how you arrive at the answer.

  Q1 write a note on managerial decision-making under perfect

q1 write a note on managerial decision-making under perfect information risk uncertainty.q2 show that the price effect

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