Manufacturer of digital controls for milling machines

Assignment Help Business Economics

Reference no: EM131170932

X is a u.s. manufacturer of digital controls for milling machines. the firm has been exporting its least expensive model, which sells for us$1,500 to Mexico, where the demand has proved to be Q= 3,500 - 2P, where Q= quantity demanded and P= price. X wants to break into the south american markets in Brazil, Argentina and chile. if the demand in each of these countries is the same as in Mexico,

a. how many machines can X sell in all three countries?

b. at a price of $1,500, what will be the total revenue, TR, from sales in all three countries?

c. what is the price elasticity of demand in each country when the price is $1,500?

d. if the price is $1,500, what will be the marginal revenue, MR, in each country?

e. how many units must X sell in each country in order to maximize revenue? what would be the price?

f. what will the price elasticity be when total revenue is maximized.

Reference no: EM131170932

Previous Q& A

Compare and contrast porters generic strategies

Strategic management: Compare and contrast porters generic strategies (classed as red ocean) and the blue ocean model using illustrative business examples and with diagram explanation?

How does the final length of the bar compare

How does the final length of the bar compare with its originallength?

Discuss the advantages and potential risks

As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response

Did the company handle the public response well

Identify a case where a company had to prepare a public response to a security incident. Examine and assess what happened, what vulnerability was exploited, and how the company handled the response publicly.

Increase the elastic you of demand for good

Which of the following will not tend to increase the elastic you of demand for a good ?

Do police departments in the us need military equipment

Do police departments in the United States need military equipment? Use this book as reference plus four other references https://bookshelf.vitalsource.com/#/books/9781269514415/cfi/8/6!/4/2/2@0:0

Explain the potential personal liability to acme fireworks

Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract. Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a firewor..

What are some issues that concern international organization

Research the following types of organizations "Nonprofit, For-profit, Political and Government and International", identify key concerns for each and provide example of each type of organization: What are some issues that concern International Organi..

Violence goodness and justice in american culture

"considering hate: violence, goodness and justice in american culture and politics".- Write about the quote at the start of the chapter.

Examine five issues that the it department is likely to face

Create an architectural diagram that shows how the virtual teams would collaborate and access common repositories for documents, software, development, and testing facilities. Use Visio or an equivalent such as Dia. Note: The graphically depicted ..

Reviews

Write a Review

Message

Similar Q& A

Travel plans and cost estimate to continue with the plan

What are the recommendation for opening Disneyland in India and future plans for it? What would be the general objective and travel objectives, key persons with which to meet, activities to experience, travel plans and cost estimate to continue with ..

The equivalent equal bimonthly payments

An employee has been offered a 5 year contract for a position at a company. They offered 3 different payment terms and asked you to decide your preferred option. Draw the cash flow diagram for each option. If each of these options are to be paid 2 ti..

Compute only the arc elasticity

Compute only the arc elasticity. So by using the midpoints formula, for this family, the price elasticity of demand.

A tariff is a tax on imports

A tariff is a tax on imports. Use our model of the excise tax to explain why domestic firms ask their government to " protect" them with a tariff. Consider the winners and losers from the tariff. Why do economists tend to think that tariffs are a bad..

Preferences are represented by the utility function

Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u (xy)= lnx + 2 ln y (MUx=1/x, MUy=2/y). Derive his demand functions for x and y.

Yields statistically better results than fixed effects model

Is it appropriate to use an OLS regression on a panel data if it yields statistically better results than a fixed effects model? OLS results provide statistically significant variables and it is an overall better fit model than fixed effects in which..

Consider the competitive market for natural gas

Consider the competitive market for natural gas. Now suppose that the price of renewable energy (a substitute for natural gas) decreases because of a technological advance. Answer the following questions about the natural gas market.

Illustrate what role did the policies of various governments

Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonald's and Wal-Mart.

Two inputs in the production function labor

Suppose there are two inputs in the production function labor and capital and that this firm has a strange technology: the two inputs are perfect substitutes. The existing technology permits one machine to do the work of three people. The firm wants ..

What happens to hours of work when non-labor income decrease

What happens to hours of work when non-labor income decreases? Does such a non-labor income change generate a substitution effect? Why might we expect welfare programs create work disincentives? What happens to the probability that a particular perso..

What is the total holding cost for year using this policy

The annual demand for a product has been projected at 2,500 units. This demand is assumed to be constant throughout the year. The ordering cost is $30 per order, and the holding cost is 40 percent of the purchase cost. Currently, the purchase cost is..

Economy through both employment creation and price reduction

The three studies that Bivens (2005) reviewed indicate that offshoring benefits the US economy through both employment creation and price reduction. Bivens argues that the results from these three studies are not reliable at best and, in some cases, ..

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

User Account

All Pages