ZuoTi.Pro
Question

1.1. Determining an Optimal Price A firm’s Marketing Department has estimated the demand curve of a product as y =1100-7...

1.1. Determining an Optimal Price A firm’s Marketing Department has estimated the demand curve of a product as y =1100-7x, where y represents demand and x represents the unit selling price (in dollars) for the relevant decision period. The unit cost is known to be $24. What price maximizes net income from sales of the product?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

7xal10D IST 4 TR y S7.14y-0.14 MR d CTR) IST 4 0.28Me 2 AL MR MC IST I 02872 284 2 24 i 3 3 1Y 475. S IST.I4-O.14(475.s) ao STPrice=$90.57

Output=475.5

0 0
Add a comment
Know the answer?
Add Answer to:
1.1. Determining an Optimal Price A firm’s Marketing Department has estimated the demand curve of a product as y =1100-7...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • An economic consultant for X Corp. recently provided the firm’s marketing manager with this estimate of the demand function for the firm’s product:

    An economic consultant for X Corp. recently provided the firm’s marketing manager with this estimate of the demand function for the firm’s product: Q d x = 98 − 4Px + 6Py − 1M where Qd x represents the amount consumed of good X, Px is the price of good X, Py is the price of good Y , and M is income. Suppose good Y sells for $2 per unit and consumer income is $10. (a) Are goods X and Y substitutes...

  • The inverse demand curve for product x is given by px=20−4·qx+2·py where px represents the price...

    The inverse demand curve for product x is given by px=20−4·qx+2·py where px represents the price in dollars per unit, qx represents the rate of sales in pounds per week, and py represents the selling price of another product y in dollars per unit. The inverse supply curve of product x is given by px=10+2·qx Determine the equilibrium price and sales of X Let py=$10. Determine whether x and y are substitutes or complements

  • Cafe Caffe sells its product at a price of €5 each (the demand curve is horizontal...

    Cafe Caffe sells its product at a price of €5 each (the demand curve is horizontal at this price). Its total and marginal cost functions are: TC = 50 – q + 0.0192 MC = -1+0.02, where TC and MC are measured in €, and q is the output rate. (a) Determine the output rate that maximizes profit or minimizes losses in the short run. (b) Calculate the profit earned at the output level you calculated in (a). (c) Suppose...

  • Cafe Caffe sells its product at a price of €5 each (the demand curve is horizontal at this price). Its total and ma...

    Cafe Caffe sells its product at a price of €5 each (the demand curve is horizontal at this price). Its total and marginal cost functions are: TC = 50 - 4+0.019? MC = -1 +0.024 where TC and MC are measured in €, and q is the output rate. (a) Determine the output rate that maximizes profit or minimizes losses in the short run. (b) Calculate the profit earned at the output level you calculated in (a). (c) Suppose that...

  • Cafe Caffe sells its product at a price of €5 each (the demand curve is horizontal at this price). Its total and margin...

    Cafe Caffe sells its product at a price of €5 each (the demand curve is horizontal at this price). Its total and marginal cost functions are: TC = 50 – q +0.01q2 MC = -1 + 0.029, where TC and MC are measured in €, and q is the output rate. (a) Determine the output rate that maximizes profit or minimizes losses in the short run. (b) Calculate the profit earned at the output level you calculated in (a). (c)...

  • The demand for your product X has been estimated to be Qx = 7, 880 −...

    The demand for your product X has been estimated to be Qx = 7, 880 − 4Px − 2Py + Pz − 0.1M where Y and Z are other (related) products. The relevant price and income data are as follows: Px = 10, Py = 15, Pz = 50, M = 40, 000 (Please show work and answers to questions a-e) a. Which goods are substitutes for X? Which are complements? b. Is X an inferior or a normal good?...

  • Because the derivative of a function represents both the slope of the tangent to the curve...

    Because the derivative of a function represents both the slope of the tangent to the curve and the instantaneous rate of change of the function, it is possible to use information about one to gain information about the other. Consider the graph of the function y = f(x) given in the figure. (a) Over what interval(s) (a) through (d) is the rate of change of f(x) positive? (Select all that apply.) OOOO (b) Over what interval(s) (a) through (d) is...

  • Find the equation of the tangent line to the curve when x has the given value....

    Find the equation of the tangent line to the curve when x has the given value. 7) f(x) = 4,x=5 8) f(x) = }x=3 11) Solve the problem. 11) The profit in dollars from the sale of thousand compact disc players is P(x) = x3 - 5x2 + 3x + 8. Find the marginal profit when the value of x is 6. 12) 12) Ir the price of a product is given by Px) E 1200, where x represents the...

  • 1. Consumer’s utility function is: U (X,Y) = 10X + Y. Consumer’s income M is 40...

    1. Consumer’s utility function is: U (X,Y) = 10X + Y. Consumer’s income M is 40 euros, the price per unit of good X (i.e. Px ) is 5 euros and the price per unit of good Y (i.e. Py) is 1 euro. a) What is the marginal utility of good X (MUx) for the consumer? ( Answer: MUx = 10) b) What is the marginal utility of good Y (MUy) for the consumer? ( Answer: MUy = 1) c)...

  • Question 9a, 9b, 9c, and 9b and Question 6e and 6f (Also please review if ive...

    Question 9a, 9b, 9c, and 9b and Question 6e and 6f (Also please review if ive done the assignment correct) 1) Summarize the information for TrueBeat from 09 & 10 of HW 1.1 assuming they produce and sell 1,000 drum sets during the year. Remember to use 2 decimals for “per unit" values. Total Dollars TrueBeat - Summarized connect given data Average Cost per Unit Direct materials Direct labor $ 90 Variable manufacturing overhead $ 35 Fixed manufacturing overhead $...

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