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

The demand for big macs, illustrate and explain the changing demand gor big...

illustrate and explain the changing demand gor big Mac using the indifference curves and budget line

What are the policies of savings and investment - US Economy, Policies of S...

Policies of Savings and Investment Policies to make sure that savers get reasonable rates of return on their savings have the potential to boost savings rate. Comparing systems

The analysis of competetive markets, how can a price ceiling make consumers...

how can a price ceiling make consumers better-off? under what conditions might it make them worse off?

The theory of demand :the utility approach, Prove that the utility approach...

Prove that the utility approach and the indifference curve approach yield the same consumer equilibrium.

#economic teory and practise, how does economics bridge the gap between eco...

how does economics bridge the gap between economic teory and practise

Demand and supluy curves, using demand and supply curves explain how shorta...

using demand and supply curves explain how shortage and surplus are created

Market structures, illustrate and discuss the implications of various marke...

illustrate and discuss the implications of various markets structures(competitive and non-competitive) for price dertimation

Consumer behavior, Consumer Behavior The description of how consumers...

Consumer Behavior The description of how consumers allot their resources (income) to the purchase of various goods and services to get maximum in their well being. There a

Economic models, the general characterictics of economic models,its limitat...

the general characterictics of economic models,its limitations and verification

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