Determine the profit-maximizing price, Microeconomics

Assignment Help:

Determine the Profit-Maximizing Price

If a firm targets a 25 % rate of return on sales, and has unit costs of production of $100, what price should it charge if it uses cost-plus pricing?  If the firm has a demand function P = 10000 – 20Q is the cost-plus price the profit-maximizing price?  If not, determine the profit-maximizing price, quantity and corresponding profit.   Is the target rate of return the profit-maximizing r.o.r.? why or why not?  What important economic considerations, does cost-plus pricing ignore?


Related Discussions:- Determine the profit-maximizing price

Cost function, what are the properties of cost function

what are the properties of cost function

What is endothermic reaction, What is endothermic reaction? 3. Draw a gener...

What is endothermic reaction? 3. Draw a generalised energy graph for an endothermic reaction.

Workers'' co-operative, Workers' Co-operative: Another form of privat...

Workers' Co-operative: Another form of privatisation is transfer ofownership of a loss-making concern to the workers. Mr. R. Ganpati, formerChairman of the Board of Industria

Capacity utilization, discuss ho capacity utilization and product different...

discuss ho capacity utilization and product differentiation affect internal rivalry and entry barriers with the analytical framework of the porter five forces model. use the econom

Distribution of income, Q. Distribution of income? Distribution:Distrib...

Q. Distribution of income? Distribution:Distribution of income reflects the process by which real output of services and goods produced by the economy is allocated to different

Consumption of services and goods, Services and goods that are used for the...

Services and goods that are used for their ultimate end purpose, meeting some human desire orneed. Consumption may include private consumption (by individuals, financed from their

Graph & calulations, Not sure how to graph & calculate a retail price of $3...

Not sure how to graph & calculate a retail price of $30 & avg cost $20 assuming that the equation for demand is Q=10,000-9,000P, where P=retail price & Q=# sold per month.Then to s

Write Your Message!

Captcha
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