a) E = -2
MC = 20
MR = P*(1+E/E)
= P*(1+(-2)/-2)
= -1/-2P
= 0.5P
b) Profit maximizing price = 0.5P = 20
P = 20/0.5 = 40
The manager of a local monopoly estimates that the elasticity of demand for its product is...
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $35 per unit. a. Express the firm’s marginal revenue as a function of its price. Instruction: Enter your response rounded to two decimal places. MR = × P b. Determine the profit-maximizing price. Instruction: Use the rounded value calculated above and round your response to two decimal places. $
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $30 per unit. a. Express the firm’s marginal revenue as a function of its price. Instruction: Enter your response rounded to two decimal places. MR = ___ × P
The manager of a local monopoly estimates that the elasticity of demand for its products is constant and equal to -3. The firm's marginal cost is constant at $35 per unit. a. express the firm's revenue as a function of its price MR= ???x P b. Determine the profit-maximizing price
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $30 per unit. a. Express the firm’s marginal revenue as a function of its price. MR = ________ × P b. Determine the profit-maximizing price.
The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $6.00 Price Quantity 0 18 16 2 14 12 6 10 8 10 12 8 6 4 14 2 16 0 18 Calculate the firm's marginal revenue curve. The firm's marginal revenue (MR) curve is A. MR 18-1.00Q B. MR 10 1.00Q C. MR 10-0.50Q O D. MR 18-0.25Q O E. MR 18-2.000 What are the firm's profit-maximizing output and price? The...
The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $8.00: Price Quantity 18 16 8 14 16 12 24 10 32 8 40 48 4 56 2 64 0 72 Calculate the firm's marginal revenue curve The firm's marginal revenue (MR) curve is OA. MR 18- 0.500. O B. MR 18-0.250. O C. MR 18-0.08Q. O D. MR 10-0.130. O E. MR 10-0.25Q What are the firm's profit-maximizing output and price?...
The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $8.00: Price 18 16 14 12 10 8 6 4 2 0 Quantity 0 4 8 12 16 20 24 28 32 36 Calculate the firm's marginal revenue curve. The firm's marginal revenue (MR) curve is A. MR = 18 - 1.000. B. MR = 10-0.50Q. C. MR = 18 -0.13Q. D. MR = 18 -0.50Q. The firm's profit-maximizing output is 24...
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), Its marginal cost curve (labeled MC), and its average total cost curve (labeled ATC). You can hover over the points on the graph to see their exact coordinates. PRICE (Dollars per month) 200 180 ATC 160 140 120 100 Demand 80 60 40 MC 20 MR - 0 6 12 18 24 30 36 42...
If Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.95, how will the prospect of an economic bust (expected to decrease consumers' incomes by 6 percent over the next year) impact the quantity of coffee Starbucks expects to sell? Instruction: Enter your response rounded to two decimal places. It will change by percent.
If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 2.2, how will the prospect of an economic bust (expected to decrease consumers’ incomes by 2 percent over the next year) impact the quantity of coffee Starbucks expects to sell? Instruction: Enter your response rounded to two decimal places. It will change by how much percent?