Question

QUESTION 10 On Jetstar flights, passengers have to pay extra for food and drinks. Assume the only product that Jetstar sells on the plane is packets of potato chips. Each packet costs Jetstar $4.00 (hint: the marginal cost is constant at $4.00 per packet). Currently Jetstar charges $4.50 for a packet of chips Price ($/packet) 6.50 6.00 Quantity (packets) 30 42 5.50 5.00 4.50 4.00 56 72 92 105 Answer the following questions a. What is Jetstars marginal revenue when the price is $4.50 per packet? Answer to the nearest two decimal places. $ per packet b. At a price of $4.50, should Jetstar decrease or increase the packets of chips sold to maximise profit? Type D for Decrease or l for Increase c. What price should Jetstar charge to maximise profits? Answer to the nearest two decimal places. $ per packet.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

em L MR(S 145 20 4-2 5 252. b, 00 S.So S ed 2- 24.5 2 2. (05 UO 50 S0 50

Add a comment
Know the answer?
Add Answer to:
QUESTION 10 On Jetstar flights, passengers have to pay extra for food and drinks. Assume the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUESTION 10 On Jetstar flights, passengers have to pay extra for food and drinks. Assume the...

    QUESTION 10 On Jetstar flights, passengers have to pay extra for food and drinks. Assume the only product that Jetstar sells on the plane is packets of potato chips. Each packet costs Jetstar $4.00 (hint: the marginal cost is constant at $4.00 per packet). Currently Jetstar charges $4.50 for a packet of chips Price ($/packet) 6.50 6.00 Quantity (packets) 30 42 5.50 5.00 4.50 4.00 56 72 92 105 Answer the following questions a. What is Jetstar's marginal revenue when...

  • On Jetstar flights, passengers have to pay extra for food and drinks. Assume the only product...

    On Jetstar flights, passengers have to pay extra for food and drinks. Assume the only product that Jetstar sells on the plane is packets of potato chips. Each packet costs Jetstar $4.00 (hint: the marginal cost is constant at $4.00 per packet). Currently Jetstar charges $4.50 for a packet of chips Price S/packet 6.50 6.00 5.50 5.00 4.50 4.00 Quantity ackets 30 56 72 92 105 Answer the following questions a. What is Jetstar's marginal revenue when the price is...

  • As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza...

    As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza in Egypt, is a huge tourist attraction. The Egyptian Government decides to grant one person, called Rajmund, exclusive access to the pyramids so he can conduct tours. Each tour costs him $108 to conduct (ie: his marginal cost is constant at $108/tour). Below is a table of potential prices he could charge and the corresponding quantities. Quantity tours 2 4 Price $/tour 200 180...

  • Elasticity 12 13 14 Overall Score: 61.46% Intro Question 1.2: After raising the price of Ground...

    Elasticity 12 13 14 Overall Score: 61.46% Intro Question 1.2: After raising the price of Ground Beef by 30%, how much of a percentage increase or decrease in sales should Jenny expect? Denote a decrease as negative and round your answer to two decimal places (e.g., -3.02%). Check Answer Calculating Price Elasticity of Demand Item: Ground Beef Price $3.75 Quantity 200 Old Ground Beef used to make hamburgers, meat balls, and other inexpensive meat dishes. New $4.50 170 Price Elasticity...

  • As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza...

    As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza in Egypt, is a huge tourist attraction. The Egyptian Government decides to grant one person called Rajmund, exclusive access to the pyramids so he can conduct tours. Each tour costs him $60 to conduct (e: his marginal cost is constant at $60/tour). Below is a table of potential prices he could charge and the corresponding quantities Quantity Price $/tour 200 180 tours 4 162...

  • Question 7 (1 point) Price of taxi ride $4 60 80 Quantity of taxi rides Refer...

    Question 7 (1 point) Price of taxi ride $4 60 80 Quantity of taxi rides Refer to the above diagram. If the price of a taxi ride increases from $6 to $8, producer surplus for this taxi driver will (rise, fall) by Include the $ sign and separate your two answers only with a comma and no space. For example, if your answer is" fall by $60.50, show this as fall,$60.50. If your answer is Eighty dollars, show this as...

  • Need help with Profit Maximization Home Ene Delen Problem Set 6A: Production and Costs Names SOLUTION...

    Need help with Profit Maximization Home Ene Delen Problem Set 6A: Production and Costs Names SOLUTION Do this problem set if your family name begins L.Z. (-5) In the following questions, round to two decimal places (-2). Do not use fractions. Here is the production function for Barney's Batik Blousons (BBB). Labor 1 2 3 Total Product 6 14 4 2 8 9 10 1/2. Compute the marginal product (MP) and average product (AP) values in the table below. Labor...

  • We are evaluating a project that costs $924,000, has a four-year life, and has no salvage value. Assume that de...

    We are evaluating a project that costs $924,000, has a four-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 87,600 units per year. Price per unit is $34.55, variable cost per unit is $20.80, and fixed costs are $756,000 per year. The tax rate is 35 percent, and we require a return of 13 percent on this project. Requirement 1: Calculate the base-case cash flow...

  • Problem Set 6A: Production and Costs In the following questions, round to two decimal places (-2)...

    I need help answering questions to the second page. Problem Set 6A: Production and Costs In the following questions, round to two decimal places (-2). Do not use fractions (4), Rounding Technique: If the third value after the decimal point: Name SOLUTION exceeds "5", round the second value up. Example: 1.456-> 1.46 is less than "5", don't change the second value. Example: 1.454->1.45 5y round the second value to the even value. Eaample. 1455 -146 146-5146 1/2. Given the production...

  • Needing help with portion b-3 and c. I have solved the other portions. We are evaluating...

    Needing help with portion b-3 and c. I have solved the other portions. We are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 62,000 units per year. Price per unit is $40, variable cost per unit is $20, and fixed costs are $636,000 per year. The tax rate is 35 percent, and we require a return...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT