a. If the firm wishes to maximize its total revenue, at what price should it sell its pots? What is its total revenue? $[ b. Suppose that the firm were to increase its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. What is the co-efficient for the price elasticity of demand between those two prices? Round your price answer to two decimal places. c. Suppose that the firm were to decrease its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. What is the co-efficient for price elasticity of demand between those two prices? Round your price answer to two decimal places.

a. If the firm wishes to maximize its total revenue, at what price should it sell its pots? What is its total revenue? $[ b. Suppose that the firm were to increase its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. What is the co-efficient for the price elasticity of demand between those two prices? Round your price answer to two decimal places. c. Suppose that the firm were to decrease its price by $4 from the price in (a). What will be the change in its total revenue? Give your answer as an absolute number. What is the co-efficient for price elasticity of demand between those two prices? Round your price answer to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Lauren was accepted at three different graduate schools, and she must choose one. Elite U costs $50,000 per year and did not offer Lauren any financial aid. Lauren values attending Elite U at $60,000 per year. State College costs $30,000 per year and offered Lauren an annual $10,000 scholarship. Lauren values attending State College at $40,000 per year. NoName U costs $20,000 per year and offered Lauren a full $20,000 annual scholarship. Lauren values attending NoName at $15,000 per year. What is Lauren's economic surplus from attending State College instead of her next best alternative? Multiple Choice $40,000 $20,000 $10,000 $5,000 X
Price matching is a strategic move that A- seeks to make cheating unprofitable. B- must generally be announced publicly in order to have the desired effect. C- has no usefulness to managers if a simultaneous pricing decision is going to be made only one time. D- both a and b E- all of the above
You own a company that produces helmets. You are currently selling 100 helmets per week. Your average total cost of producing these helmets is $100. Recall ATC=TC/Q. A customer comes to your store and says he needs a helmet and will pay you $95 for it. Thus you need to produce the 101st helmet if you make the sale. Your average total cost if you produce 101 helmets is $99.95. Do you sell the helmet to the customer for $95?
Which one applies to an impatient individual? Have high discount factors Have low discount rates More likely to become a physician More likely to become a surfer
A personal economic decision that was driven by a behavioral bias rather than by pure rational behavior.
Can you check my answers? Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
Which of the following about emotional influence on decision making is true? People generally make rational decisions that maximize desirable outcomes in the absence of emotions Only emotions that are relevant to the decision at hand have any influence on that decision People tend to overestimate their predicted negative emotions resulting from a decision's outcomes People are equally angry about unfair offers in the ultimatum game from computers and from other human players
Compare and contrast decision making in general and decision making when there is a resource constraint
T/F Opportunity cost is the cost of nest best foregone.
A new vaccine offers protection against otitis media. Administering the vaccine to 10,000,000 children under age 5 would reduce otitis media cases from 14,000,000 to 11,000,000. The vaccine costs $100 per patient. What is the cost per case avoided? Round your answer to the nearest unit. Enter a numeric value as a non-numeric value will be converted to 0 thus potentially making your answer wrong. Do not enter a comma or any other sign for the same reason. I
Describe the concept of contingency valuation, and two of its limitations.
In terms of employee dismissal/firing, what does just cause require?