(a) The reason firm's use non-linear pricing is to increase the firm's sales increase the firm's revenue change the consumer's preferences o reduce the firm's costs
Q: What is meant by economies of scale and what is the importance of this concept to economic growth?
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: True or false 12
A: Coupon clipping is referred as a practice of finding discounts on consumer goods such as groceries.…
Q: At a recent boat show, Nautica Bank was offering add-on interest installment boat loans for up to 5…
A:
Q: rian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…
A: q = min{1/3L, 2K}. Brian uses 1 kg of wool and 3 hours of labor to produce 1 t-shirt
Q: The short run refers to a period: a. of several days. b. during which prices are sticky and…
A: A time in the future when one or more inputs are fixed and others are variable is referred to as the…
Q: Q04
A: Profit per ton = Price per ton - Cost per ton Profit per ton = P2750 - P1250 Profit per ton = P1500…
Q: You are considering purchasing a dump truck. The truck will cost $62,000 and have operating and…
A: Equivalent annual cost " it is the annual cost of owning, operating and maintaining an asset over…
Q: Why did the Chinese yuan depreciate against the dollar between August 2015 & December 2016? What are…
A: The value of a set asset less all of the depreciation that has been recorded against it's called…
Q: If an executive agency, like the EPA, differs with the direction of the President's policy and takes…
A: Laid out by President Nixon in December 1970, the EPA-a U.S. government agency intended to safeguard…
Q: scores from 100 third-grade classes, estimates the OLS regression: TestScore 520.4 – 5.82 x CS, R² =…
A:
Q: In an island economy, farmers grow 150 potato, pay 25 in tax, eat 65, plant 60 in the yard. a.…
A: Given; Total number of potatoes= 150 potatoes Number of potatoes paid as tax= 25 potatoes Number of…
Q: Using the following data, determine: National Income (GDP) 1,275 billion…
A: At equilibrium Y = C + I + G + NX Where NX is net export , NX = X - M I.e. export minus import
Q: 6) Netflix is making two versions of its subscription plans (4K and FHD), which target consumers…
A: Price discrimination is the process of selling different units of the same commodity's output at…
Q: What percentage of its GDP does the United States spend on health care?a. 5 percentb. 13 percentc.…
A: Answer is given below
Q: Discuss the importance of services to the economy
A: An economy is a broad collection of interconnected production and consuming activities that help…
Q: Why do unions that have few or no minimum wage workers work to raise the minimum wage? O To drive as…
A: In the labor market, union refers to a group of some experienced worker who hold some power in the…
Q: Refer to tables 14.4 and 14.5 given in the link “Numerical Problem”. Use information from these…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: hat are the economic values of strate Liance strategies? Illustrate of a form c Iccessful strategic…
A: Alliances and associations are a key staple in business procedures for associations huge and little.…
Q: What is efficiency? Is it the only goal of economic policymakers?
A: Scarcity: - it is a very basic problem of economics that is related to the limited availability of…
Q: Consider the following table, describing each person's willingness to pay for different levels…
A: Answer-
Q: Discuss the ways a college degree a form of capital.
A: A college diploma is a type of capital because it will potentially help you acquire a better-paying…
Q: Explain the difference between saving and investment as defined by a macroeconomist. c. Which of…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: According to John Rawls, society gains more from improving the welfare of the rich household.
A: As a political theorist, John Rawls (born in 1921 and died in 2002) was an influential figure in the…
Q: Indifference Curve and Budget Line (20%) Annie has an income of $240 an hour. Popcorn costs $8 a…
A: * SOLUTION :- (4)
Q: uan owns a pizza shop. In 2021, Juan spent $20,000 upgrading the oven. This is an example of _____…
A: Answer is given below
Q: Why Marginal Revenue is less than Price for a monopolist facing a downward sloping market demand…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: If Susan Kalanti deposits 400,000 USD into a saving account at CITIBANK, and you know that CITIBANK,…
A: Given: The amount deposited (monetary base)=$400000 Maximum loan =84% of the amount deposited
Q: 1 Consider the production function, f (21, z2) = z? z5. (a) Solve the PMP for factor demands z (p,…
A: In Perfect competition we know that price and marginal cost are equal. And marginal cost itself…
Q: A bag of fertilizer has a marginal revenue product of $100. The current price in the store is $150.…
A: In a market, there is a significant relationship between marginal revenue product and price level to…
Q: CPI Table: Year 2015 2016 2017 2018 CPI 92 100 109 135 A a pair of jeans costs $90 in 2015. What is…
A: CPI (2015) = [cost of basket (2015)/cost of basket at base]*100
Q: Use the knowledge of Break-Even analysis illustrate shortcomings of break-even analysis, also…
A: A break-even analysis is an economic method for determining an industry's cost or a certain quantity…
Q: Consider a representative agent with the utility function U = ln(Ct)+ Nt The budget constraint is Ct…
A: Utility function : U = ln (Ct) + Nt Budget Constraint : Ct = wNt + Dt Optimal point of consumption…
Q: Suppose that sacrifice ratio is 4 and the goal is to decrease inflation by 5%. What Would the price…
A: Inflation means the rise in the price level of goods and services in an economy. It means the…
Q: he demand curve and supply curve for a No-year discount bond with a face value f $2,420 are…
A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…
Q: Why do firms hedge their risk and what determines the choice of contract for hedging? Also examine…
A: Hedging is a risk management strategy that involves taking an opposite position in a related asset…
Q: Next 3 questions are related to the following: Arandom sample of 1200 vehicles on a freeway are…
A: 31. Sample proportion,P = xn=3261200=0.272
Q: Q2: Describe what a fiscal automatic stabilizer is. Given an example.
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 2- Consider two fishers John (J) and Amanda (A) are both fishing at a public lake. Let us use the…
A: Nash equilibrium effort level will be achieved at the point where any of the two fishers optimize…
Q: C = 450 + 0.4Y 1= 350 G = 150 X = 70 Z= 35 + 0.1Y T= 0.15Y Yf = 1550 Q.2.3 Calculate the equilibrium…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be…
Q: Cost of a machinery is Rp 10 Billion and the economic life of the machinery is 20 year. Assuming the…
A: Cost of machine = 10 billion Interest rate = 12% Economic Life = 20 years We find the annual worth…
Q: 3 p) The folowing three ally exclusive altematives have a 9-year life and no ally exchu alternatives…
A: Given:
Q: Given the selling price at P120 per unit; contribution margin at 25% and fixed cost at P250,000, the…
A: The contribution margin is the selling price minus variable cost. Contribution margin ratio =…
Q: Given the data in the table, what is the marginal revenue when the 15th unit is sold?
A: Marginal revenue is the ratio of change in total revenue and change in quantity. Total revenue =…
Q: n an auction, the winning bidder often ends up O a. political pressure. O b. asymmetric information.…
A: In the bidding system, a winner is a person whose bid is accepted or whose bid is greater than the…
Q: 2. Suppose you asked the following question to Person A and Person B: "How much are you willing to…
A: Introduction Here utility Function of A and B has given. Let utility function = W0.5 Here W is $ 100…
Q: Discuss the Material Balance Model of the Economy and environment. Explain it in your words (do not…
A: This concept is from the environmental economics. This model is given by Ayres and Kneese and is…
Q: Why did China tried to limit depreciation by using dollars to buy yuan? Why didn't it work?
A: The conversion of 1 country's currency into another is understood as foreign exchange. the worth of…
Q: 4. Describe two aspects of a market that make it easier for firms to collude and two aspects that…
A: Firms is a gievn market collude to get more profits or to reduce the losses. There are some aspects…
Q: on in the table to calculate how a 5% increase in the price of Pepsi affe nanded. on in the table to…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: When the exchange rate between the U.S. dollar and the euro changes from 1.07 euros per dollar to…
A: The exchange rate between the US dollar and the euro is 1.07 euros per dollar It means one US dollar…
Step by step
Solved in 2 steps
- Explain the type of pricing strategy that you as the manager of a company would implementfor Good X and Good Y with the following price elasticity of demand co efficients. Usediagrams to motivate your answer.a). Good X: 2.3 b). Good Y: 0.6Hans is a butcher in Washington. The following contains data on prices and weekly sales at his shop Good Beef Chicken Price 9.00/lbs $4.00/lbs Quantity 400 lbs 300 lbs ShS He estimates that the own price elasticity for beef is 2 and for chicken is .75. He also estimates that the cross price elasticity for chicken is .60. His current revenue from the sale of these two goods is making a total of $4800/week. In the spirit of the return to good times and outdoor grilling, he has decided to lower the price of beef for the summer, from $9.00 to $8.55. Overall, Hans can expect to take in dollars in revenue, given the information in this problem? (Revenue = Price x sales). Record your answer without a dollar sign and without a comma. Helpful Hint: In this problem, we are not changing the price of chicken.16. Revenue with Substitutable Products. The Camera Shop sells two popular models of digital single lens reflex (DSLR) cameras. The sales of these products are not inde- pendent; if the price of one increases, the sales of the other increases. In economics. these two camera models are called substitutable products. The store wishes to estab- lish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and price (P) of each model: NA 195 0.6PA + 0.25PB N = 301+0.08PA-0.5PB a. Construct a model for the total revenue and implement it on a spreadsheet. b. Develop a two-way data table to estimate the optimal prices for each product in order to maximize the total revenue. Vary each price from $250 to $500 in incre- ments of $10.
- 1) Walkers’ Shoes reports the following demand schedule for its black brogues.Price 1600 800 400 200 100 50 25 12.5Quantity demanded 2 4 8 16 32 64 128 256a) For an increase in price from 50 to 100, calculate:i) The proportional change in price.ii) The proportional change in quantity demanded.iii) The price elasticity of demand for Walkers’ black brogues.b) Considering the demand schedule in the table, what do you conclude about the value of the price elasticity of demand for Walkers’ black brogues at every level of output? How would you classify the demand for such a good?c) What is the effect on Walkers Shoes’ total revenue of doubling the quantity of shoes which it supplies? What is the value of its marginal revenue? How does your answer relate to the value of the price elasticity of demand?d) The income elasticity of demand for Walkers’ Shoes is estimated to be 1.8. By how what percentage do you expect demand to increase if its customers’ incomes increase from 31,500 to 38,500?Joe's Pig Palace sells barbecue plates for $4.50 each, and serves an average of 525 customers per week. During a recent promotion, Joe cut his price to $3.50 and observed an increase in sales to 600 plates per week. a. Calculate Joe's arc price elasticity of demand. b. Joe is considering permanently lowering his price to $4.00 to increase revenue. How many plates should Joe expect to sell at the new price? Does the move make sense in the light of Joe's desire to increase revenue?please show answer for graph and multiple choice Draw a curve that shows the relationship between quantity and total revenue when the demand curve for umbrellas is linear. Label it TR. Draw a point on the curve at which demand is elastic. Label it Elastic. Draw a point on the curve at which demand is inelastic. Label it Inelastic. Draw a point on the curve at which demand is unit elastic. Label it Unit Elastic. IT If demand is elastic, what is the effect of a 1 percent price cut on the quantity sold? If demand is elastic, a 1 percent price cut sold by OA. increases; more than 1 percent the quantity *** 50 O A. increases; more than 1 percent B. decreases; 1 percent C. decreases; more than 1 percent D. increases; less than 1 percent 40- 30- 20 10- 0+ If demand is elastic, a 1 percent price cut sold by 10 Quantity (millions of umbrellas per year) >>> Draw only the objects specified in the question. Total revenue (millions of dollars per year) 0 12 the quantity
- 6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 2 Total Revenue PRICE (Dollars per bike) 88NR S 89 88 89 O 300 275 18 27 35 45 54 53 72 QUANTITY (Bikes) 91 Demand 90 99 108You have just opened a new grocery store. Every item you carry is generic (generic beer, genericbread, generic chicken, etc.). You recently read an article in the Wall Street Journal reporting thatthe price of recreation is expected to increase by 15 percent and cross price elasticity is 0.15. will this affect your store’s salesof generic food products?If demand is flat, then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C d an increase in price will reduce total revenue, indicating little pricing power. an increase in price will increase total revenue, indicating little pricing power. a decrease in price will reduce total revenue, indicating a lot of pricing power. a decrease in price will have no effect on total revenue, indicating no pricing power. Your answer
- Walkers’ Shoes reports the following demand schedule for its black brogues. Price 1600 800 400 200 100 50 25 12.5 Quantity Demand 2 4 8 16 32 64 128 256 For an increase in price from 50 to 100, calculate: i) The proportional change in price. ii) The proportional change in quantity demanded. iii) The price elasticity of demand for Walkers’ black brogues.suppose a pharmaceutical company considers increasing the price of insulin tm $125 per vial to $300 per vial. whenthe price was $125, the company sold 100, 000 vials per day. the company knows its price elasticity is .25. calculate thepercentage change in quantity demanded that would result in a price elasticity of .25. show your workCreative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demand