1. The elasticity of demand for a firm's product is -2 and its advertising elasticity of...
1. The elasticity of demand for a firm's product is -2 and its advertising elasticity of demand is 0.12.
a) Determine the firm's optimal advertising-to-sales ratio.
b) If the firm's revenues are $70,000, what is its profit-maximizing level of advertising?
c) Can Advertising be considered as an entry barrier? Why or why not?
Homework Answers
Add Answer to:
1. The elasticity of demand for a firm's product is -2 and its
advertising elasticity of...
map. 8 Managing in Competitive, Mono... 0 Saved Saved The elasticity of demand for a firm's...
map. 8 Managing in Competitive, Mono... 0 Saved Saved The elasticity of demand for a firm's product is -1.5 and its advertising elasticity of demand is 0.18. a. Determine the firm's optimal advertising-to-sales ratio. Instruction: Round your response to 2 decimal places. b. If the firm's revenues are $30,000, what is its profit-maximizing level of advertising? $ < Prev 2 of 6 !! Next >
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 -2. The firm's marginal cost is constant at $20 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 price elasticity of demand for a firm's product is equal to 2 over the range...
The price elasticity of demand for a firm's product is equal to 2 over the range of prices being considered by the firm's manager. If the manager decreases the price of the product by 8 percent, the manager predicts the quantity demanded will __________ by _______________ percent. Group of answer choices A. increase, 16% B. decrease, 16% C. increase, 4% D. decrease, 4%
A firm's market demand for its product in the company’s country, a, is given by Qa(Pa)...
A firm's market demand for its product in the company’s country, a, is given by Qa(Pa) = 1,050 − 4Pa, where Qa is the quantity of products produced per year and Pa is the price product. Cost of producing this product is ?(Q) = 70,125 + 0.0125Q2. This implies a marginal cost of production of ?C(q) = 0.025Q. a) Find the profit-maximizing price and quantity. Compute the firm’s profit in this case. Should the firm shut down in the short...
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 $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 manager of a local monopoly estimates that the elasticity of demand for its products is...
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...
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. $
Assume a first estimate their price elasticity of demand (EQxPx) to be -3.5, and their marginal...
Assume a first estimate their price elasticity of demand
(EQxPx) to be -3.5, and their marginal cost to be $15.
3. Assume a firm estimate their price elasticity of demand (EQxPx) to be -3.5, and their marginal cost to be $15. a. Using the mark-up rule, what is the optimal price for the firm to charge? 2 points b. Confirm that your answer above is correct, by computing the profit maximizing quantity and price using MR = MC if the...
3. Suppose the demand function for a firm's product is given by In Q 7-1.5 In...
3. Suppose the demand function for a firm's product is given by In Q 7-1.5 In P 2 In P, -0.5 In M +InA where P = $15, P, = $6, M $40,000, and A $350. a. Determine the own price elasticity of demand, and state whether demand is b. Determine the cross-price elasticity of demand between good X and good c. Determine the income elasticity of demand, and state whether good X is a d. Determine the own advertising...
1) A firm's production function is the relationship between: 1) _______ A) the demand for a...
1) A firm's production function is the relationship between: 1) _______ A) the demand for a firm's output and the quantity it is able to produce with available resources. B) the factors of production and the resulting outputs of the production process. C) the firm's production costs and the amount of revenue it receives from the sale of its output. D) the inputs employed by the firm and the resulting costs of production. 2) The demand curve faced by the...
map. 8 Managing in Competitive, Mono... 0 Saved Saved The elasticity of demand for a firm's product is -1.5 and its advertising elasticity of demand is 0.18. a. Determine the firm's optimal advertising-to-sales ratio. Instruction: Round your response to 2 decimal places. b. If the firm's revenues are $30,000, what is its profit-maximizing level of advertising? $ < Prev 2 of 6 !! Next >
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm's marginal cost is constant at $20 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. $
Assume a first estimate their price elasticity of demand
(EQxPx) to be -3.5, and their marginal cost to be $15.
3. Assume a firm estimate their price elasticity of demand (EQxPx) to be -3.5, and their marginal cost to be $15. a. Using the mark-up rule, what is the optimal price for the firm to charge? 2 points b. Confirm that your answer above is correct, by computing the profit maximizing quantity and price using MR = MC if the...
3. Suppose the demand function for a firm's product is given by In Q 7-1.5 In P 2 In P, -0.5 In M +InA where P = $15, P, = $6, M $40,000, and A $350. a. Determine the own price elasticity of demand, and state whether demand is b. Determine the cross-price elasticity of demand between good X and good c. Determine the income elasticity of demand, and state whether good X is a d. Determine the own advertising...
Most questions answered within 3 hours.
-
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 3 minutes ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 9 minutes ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 22 minutes ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 27 minutes ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 32 minutes ago -
Transverse pulses travel with a speed of 195 m/s along a taut
copper wire whose diameter...
asked 31 minutes ago -
Sampling for Engineers Homework question 11.51
Suppose that Y1;Y2;Y3;Y4 denote a random sample from a
Poisson(θ)...
asked 34 minutes ago -
Which of the following is cleaved by regulated intramembrane
proteolysis (RIP)? Select any/all answers that apply....
asked 34 minutes ago -
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 46 minutes ago -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 50 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 1 hour ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 53 minutes ago