ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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A buyer for a retail store negotiates discounts of 30%, 15%, and 5% (taken successively) on a certain mattress. If the mattress has in initial price of $984, what price will the buyer actually pay after the discounts are applied? (Round to the nearest cent.)
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- Suppose a firm is currently selling 1,000 units of output at a price of $8 per unit and has an advertising budget of $400. Suppose further that the firm can sell one more unit of output by either a $0.02 price discount or by a $8.00 increase in advertising expenditure. Is the firm’s advertising budget optimal? If not, determine the optimal advertising budget.arrow_forwardThe market research department of the Better Baby Buggy Co. predicts that the demand equation for its buggies is given by q = −2.5p + 500 where q is the number of buggies it can sell in a month if the price is $p per buggy. At what price (in dollars) should it sell the buggies to get the largest revenue? p = $arrow_forwardYou own a bakery and shop that makes and sells gourmet doggie treats. You have done market research and you know with certainty that your product is a normal good, not an inferior good. The current demand function for your gourmet doggie treats is: QD = 480 -6*P which of course means the equation for your current demand curve is: P = 80 -(1/6)*Q You are opening a new shop in a new part of town, and you know that incomes in that part of town are much lower than incomes are where your shop is now. Which of the following is most likely the demand curve in your new shop? Multiple Choice O P=68- (1/6)*Q P = 102 - (1/6)*Q P=92-(1/6)*Q P = 88 - (1/6)*Qarrow_forward
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