ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- You have demand for 2 products: QA = 200 - 4'PA And Qg = 180 – 2°P8 %3D You anticipate seilling 80 units of each product. You have to mark-up your two products to cover an unexpected increase in overhead costs. Based on the cost-plus pricing procedure we did in class, answer this question plus the next question. What is the percentage value of the mark-up you will put on Product A? Be careful; I am NOT asking you the value of "1 Plus the Mark Up", I am asking you the value of the mark up. Multiple Choice 80% 100% 150% 200%arrow_forwardThe demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) What direction should the apple producers move the price if they wanted to maximize their revenue? a. There is not enough information. b. Don't change the price. c. Cut the price. d. Raise the price.arrow_forwardAs per given information, the table is completed:- (In $) Quantity Price Total Marginal Total Cost Marginal Revenue Revenue Cost 34 20 20 1 32 32 32 36 16 2 30 60 28 46 10 28 84 24 50 4 4 26 104 20 54 4 24 120 16 56 2 22 132 12 64 7 20 140 80 16 8 18 144 4 100 20 16 144 128 28 14 140 -4 160 32 (d) Generally, what are the relative values of price, ATC, and AVC when a monopolist experiences: a profit? a loss but continues to produce? a loss but ceases production? 10arrow_forward
- Price (Dollars per Bushel) 950 900 850 D 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 0 3 6 9 12 15 S 18 21 24 27 Bushels of Corn (Billions) The graph above shows hypothetical demand and supply functions for corn in the U.S. Oil prices increase due to some political problems in middle east. This causes the marginal cost of producing each bushel of corn to increase by $150.00. This is because, oil is used to produce gasoline that farmers use to operate tractors, groundwater water pumps, and other farming equipment. Higher gasoline prices also affect the costs of transporting corn to consumer centers. This number may, of course, be unrealistic. But it will make the graph less messy and calculations less cumbersome. Calculate the following:arrow_forward1. The marginal price ?? ?? at ? units of demand per week is proportional to the price p. There is no weekly demand at a price of $1000 per unit, that is ?(0) = 1000. There is a weekly demand of 10 units at price of $367.88 per unit, ?(10) = 367.88. (A) Find the price-demand equation. (B) At a demand of 20 units per week, what is the price? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardA lash adjuster keeps pressure constant on engine valves, thereby increasing fuel efficiency in automobile engines. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation D (1.900-py0 10 What is the demand (0) when total revenue is maximized? What important data are needed if maximum profit is desired? G The total revenue is maximized when demand is 9500 units per month (Round to the nearest whole number) Select all important data that are needed if maximum profit is desired. DA Variable cost per lash adjuster B. Fixed cost per month C. Variable cost per engine valve D. Variable cost per gallon of fuelarrow_forward
- Price Per KM(S) 0.9 0.8 0.7 0.6 0.5- 0.4 0.3 0.2 0.1 T U V W KM DRIVEN (000s KM) PLEASE COMPLETE TABLE BELOW ONLY USING ABOVE INFORMATION T = 29,000 KM U = 36,000 KM 80 V = 44,000 KM W=47,000 KM What is the TFC at V? 19000 What is the AFC at V (2 Decimals)? 0.43 If AVC is 0.35 at V, what is the TVC? 15400 What is the BREAKEVEN Quantity (PUT LETTER)? What is the SHUTDOWN Quantity (PUT LETTER)? ATC at T is: $0.75/KM TC at U is: $25920 Find the Marginal Cost between T and U (Answer to 2 Decimals and always positive)?$ 6.92 If Price of an UBER RIDE is $0.7/KM: What is the number of KMS Driven by Jim? KM What is the total Revenue at this point? $ ☐ What is the total Cost at this point if AVC is $0.35 per KM? $ What is the Profit/Loss at this point? $arrow_forwardnd 35. AVERAGE SUPPLY A manufacturer supplies S(p) = 0.5p² + 3p + 7 hundred units of a Sie per certain commodity to the market when the price is p dollars per unit. Find the average supply as the price varies from p = $2 to p = $5. 6 43. Earrow_forward
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