Suppose the marginal costs of production for a company is

Assignment Help Microeconomics
Reference no: EM13301696

Suppose the marginal costs of production for a company is $6 at its current production levels. suppose the price elasticity of demand is constant at -2 between the prices of $10 to $15, if the current prices are $10 is the company pricing at the correct optimal level.

Reference no: EM13301696

Questions Cloud

Breach of warranty only applies to those-privity of contract : Specific Performance is a remedy not ordinarily available upon breach of contract for the sale of goods. A breach of contract is one example of a tort. For products liability it must always be established that the injured user purchased the product d..
If you were offered an outrageous compensation package to : If you were offered an outrageous compensation package to join a company that is laying off employees, declaring bankruptcy, and/or performing poorly overall, would you accept the position?
Calculate the dol and break even point for this production : Suppose a company is producing 1000 units of bottled power drink priced at $5. It is using a manufacturing process with a fixed cost of $1450 and a variable cost of $2.75 per unit (AVC).
Dol if the manufacturer id producing 15000 units : For a given price P =$5, AVC = 3 and FC =20000, what is the DOL if the manufacturer id producing 15000 units. Using the DOL value calculated above what is the profits for a 10% increase and a 10% decrease.
Suppose the marginal costs of production for a company is : Suppose the marginal costs of production for a company is $6 at its current production levels. suppose the price elasticity of demand is constant at -2 between the prices of $10 to $15, if the current prices are $10 is the company pricing at the corr..
What is the income elasticity for snickers chocolate bars : The salary in Arizona has decreased by 3% over the last 3 months. During this time, the sale of Snickers chocolate bars has decreased by 2% and gas sales decreased by 1%.
Joshua is a true entrepreneur with businesses around the : Joshua is a true entrepreneur with businesses around the world. He makes world-renowned cakes and coordinating products. Now he has begun making clothing with a cake theme/inspiration. In addition, he has written a book
Most peaches are grown in georgia : Most peaches are grown in Georgia. Today you heard that the relationship between the peach farmers and the pickers is going sour, and there will soon be no peaches available.
Find the adjuste balance due at maturity for a 90 day note : Find the adjuste balance due at maturity for a 90 day note of $12,000 at 13.9% ordinary interest if a partial payment of $6000 is made on the 60th day of the loan

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain the market equilibrating process

Describe the market equilibrating process and compare the demand for food with demand for Starbuck's coffee. Include academic research to support your ideas.

  Supply and demand in the corn market

Describe how the market for corn would be influenced if ethanol, a corn derivative was used to fuel cars in US. How would market be influenced if a new technology caused corn farming to be more efficient?

  Discuss the motivation of policymakers

should owners use market research when making decisions about starting or expanding a business POLICY MAKER 1.Government policymakers may be elected politicians or appointed experts. Describe some of the specific decisions made by policymakers that..

  Explain what negative externalities are

Explain what negative externalities are, and why there may be a case for government intervention to address them. Describe some of the ways to correct the negative externalities and the pros and cons of each method.

  Explain what principles of economics relate to the decision

Critical Thinking: Last year Congress passed a bill creating a new national health care system that is not yet fully explained. What principles of economics relate to this decision Describe how each relates and what issues must we consider.

  What might be done to make small firms more proactive

Vellus's original entry into exporting was both reactive and serendipitous. Do you think this is the exception or the rule for small businesses What might be done to make small firms more proactive with regard to exporting 3. What lessons about su..

  Identify a feature-an advantage and a benefit for product

What are the advantages and disadvantages of using prepared, or canned, sales presentation? Give examples of when using a canned presentation might be better than using a less structured presentation.

  Do they both provide efficient precautionary incentives

Imagine a situation in which a toxic substance risk can be reduced only by some combination of precautionary measures taken by both the user of the toxic substance and the potential victim. do they both provide efficient precautionary incentives fo..

  Impact of tariffs and quotas on international competition

Determine the impact of tariffs and quotas on international competition and discuss two recent examples and how it effected your employer's industry.

  What impact do constitutional rights have on response

Analyze the role health policy lobbyists for special interest groups play in promoting health policy agendas. What regulations do you believe should be implemented that do not currently exist in terms of controlling activities by these individuals

  Entire market and for an individual bottled water company

Now suppose that a scientific study find that tap water is toxic, and everyone should drink only bottled water. Illustrate the impact of this study on the market and each firm. Use graphs to illustrate your answer.

  Define what are the automatic stabilizers

Our economy is currently in recession so let's discuss how discretionary Fiscal Policy can help the situation. Please explain why tax cuts may be needed now and why we see budget deficits going up during the recession. What is the 'Crowding Out' e..

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