User Account

All Pages

Firm charging the optimal price for the product

Assignment Help Business Management
Reference no: EM131286035

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: EM131286035

Questions Cloud

Determining the reservation of right : Who does an insurer send of a "reservation of right" letter to, what is the purpose and why is it sometimes necessary for an insurer to send these out?
Conduct a trend analysis : You should note that FASB accounting changes have moved the line item "Provision for Bad Debt" from an expense to deduction from revenue - difficult to obtain data on the operating income line item, so you may need to collect additional data from ..
Calculate mass energy entropy and exergy balance : Calculate mass, energy, entropy, and exergy balances for the following devices
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..
Firm charging the optimal price for the product : 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?
Determine the temperature after compression : Saturated ammonia vapor at -25°C is compressed isentropically to 7.62 bar. Determine the temperature after compression
Board of governors of the federal reserve website : Visit the Board of Governors of the Federal Reserve website and read the latest Federal Open Market Committee (FOMC) statement which discusses the current type of monetary policy which the Federal Reserve is implementing:
Briefly summarize the main points the author established : Analyze and evaluate the articles as to their relevance in today's marketplace and organize your Article Critique as follows. Presents an abstract of each article in which you briefly summarize the main points the author established.
Estimate the model weighti : You wish to estimate the model Weighti = β1 + β2Heighti + µi, and everyone in your sample weighs exactly 70kg, although the heights range from 1.6m to 1.9m.

Reviews

Write a Review

Business Management Questions & Answers

  Customer relationship management

Recognise their use of organizational information systems such as enterprise resource planning as well as customer relationship management to achieve their mission as well as serve their clients.

  Compare and contrast your results using given two theories

Compare and contrast your results using the two theories; Choose the result that you consider to be the best resolution of the dilemma and explain why.

  Derive the welfare effect of regulation

Derive the domestic price, the quantity processed by domestic oil refiners, and the amount of imports at the competitive equilibrium. Now suppose that domestic crude oil suppliers face a price ceiling of 8. Further suppose that for each two units ..

  What are identified opportunities for improvement

Apply IOMs six aims for improvement to an experience you or someone you know has had.- How do you assess the experience, and what are identified opportunities for improvement?

  High degree of task interdependence

The tasks that your group is confronted with are exceedingly complex requiring people to have specialized training for different aspects of the tasks and you have a high degree of task interdependence.

  Accounting equation by completling the following sentence

ABC Co. performs $200 of services for a customer, but does not get paid right away. Demonstrate how ABC Co. would record this transaction in the accounting equation by completling the following sentence?

  Percentiles for the standard normal distribution

Because P(z .44) = .67, 67% of all z values are less than .44, and .44 is the 67th percentile of the stan- dard normal distribution. Determine the value of each of the following percentiles for the standard normal distri- bution (Hint: If the cumu..

  Professional on the career-relevant

Prepare a 5-8 slide PowerPoint presentation of three things you took from this course to use in an interview or discussion with a professional on the career-relevant skills gained from this five weeks of learning.

  Re-engineering an organization into cross-functional teams

Expalin the resistance to change at the organization and individual levels that you will likely encounter

  Technology impacted the training of employees1 what ways

technology impacted the training of employees1. what ways have technology impacted the training of employees?2. what

  What is core competency of nike

Compare strengths, weaknesses, opportunities also threats of Nike to its competitors. How vision does also values affect how company will respond to each.

  New system for riordan to use to improve its business

Propose a new system for Riordan to use to improve its business. A full description of the new system, a description of its components, and the benefit it will provide to Riordan

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