Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
Question
Book Icon
Chapter 15, Problem 1.1CE
To determine

To describe: Whether amazon’s warehouse, web pages and one-click sales methods are redeploy able to other products.

Blurred answer
Students have asked these similar questions
The marginal cost of supplying another unit of output of an electronic product on the internet is almost zero. If long-run equilibrium has price equals marginal cost, internet firms will all go broke. Can you resolve the puzzle?
Many apparel companies expanded into mask production during the pandemic. Now that vaccines are readily available, and places are beginning to drop the mask mandates, these masks are heavily discounted at most retailers, and have been completely discontinued at other retailers. For those firms who are discounting their masks, what must be their estimation of how the price they’re charging relates to AC and AVC? How do fixed costs play into their calculation? At what point would it be more profitable for them to burn the masks than to sell them at a discount?
The table below depicts the prices and total costs a local used-book store faces. The bookstore competes with a number of similar stores, but it capitalizes on its location and the word-of-mouth reputation of the coffee it serves to its customers. Calculate the store's total revenue, total profit, marginal revenue, and marginal cost at each level of output, beginning with the first unit (Enter all values rounded to the nearest penny.) Total Price per Book (S) Costs ($) Total Total Marginal Revenue (S) Marginal Cost ($) Revenue ($) Profit (S) - 4 Output 5.75 4.00 1 5.50 7.25 5.5 - 1.75 5.5 3.25 2 5.25 9.50 10.5 1 2.25 3 5.00 11.60 15 3.4 4.5 2.1 4 4.75 14.10 19 4.9 4 25 4.50 17.60 22.5 4.9 3.5 3.5 6 4.25 21.75 25.5 3.75 3 4.15 7 4.00 26.50 28 1.5 2.5 4.75 Based on marginal analysis, what is the approximate profit-maximizing level of output for this business?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning