ESSENTIALS OF ECONOMICS
11th Edition
ISBN: 9781260225334
Author: SCHILLER
Publisher: RENT MCG
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Question
Chapter 5, Problem 6P
To determine
(a)
The total profits earned by the company when the price of the pair of jeans is $15 and output is 40 pairs.
To determine
(b)
The total profits earned by the company when the price of the pair of jeans is $15 and output is 50 pairs.
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Students have asked these similar questions
Suppose a retail seller of jeans currently has 40 customers. The retailer offers the following quantity
discount to these 40 customers. Buy the 1* pair of jeans at a price of $100, buy a 2d pair of jeans at a price
of $80, buy a 3d pair of jeans at a price of $60, and buy a 4th pair of jeans at a price of $40. Suppose the cost
to the retailer for each pair of jeans is $40. Suppose of these 40 customers, all buy the 1ª pair of jeans, 30
of these 40 buy a 2nd pair of jeans, 20 of these 30 (i.e., those who bought a 2nd pair) buy a 3d pair, and 10 of
the 20 (i.e., those who bought a 3rd pair) buy a 4t pair. The profit to the retailer from selling jeans to these
40 customers in this way equals:
[10]
A.
$4000
В.
С.
$4600
$6200
D.
None of the above
[11]
In the case of first degree price discrimination, each consumer is charged his/her reservation price.
А.
True
В.
False
Homework (Ch 05)
On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $50, $75, $100, $125, $150,
$175, and $200 per scooter.
TOTAL REVENUE (Dollars)
7830
7290
6750
8210
5670
5130
4590
4050
3510
2970
0 25 50 75 100 125 150 175 200 225 250 275 300 325
PRICE (Dollars per scooter)
Total Revenue
gage Learning
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of scooters is currently $25 per scooter, shown as point B on the initial graph. Because the demand between points A and B is
a $25-per-scooter increase in price will lead to
in total revenue per week.
In general, in order for a price increase to cause a decrease in total revenue, demand must be
QUESTION 10
Assume you have some hogs on feed and would like to have them gain another 130 pounds before they are sold. You would like to feed a
combination of com and soybean oil meal. The following table shows various combinations of corn and soybean oil meal that will produce
130 pounds of gain. Assume corn costs $0.05 per pound and soybean oil meal costs $0.35 per pound. At these prices, which ration below
is the least cost combination of these two feeds?
Ration Number
a. Ration 5
Ob. Ration 3
c. Ration 6
d. Ration 7
1
2
3
4
5
6
7
8
9
10
Corn (lbs)
440
400
365
335
310
290
275
265
260
260
Soybean Oil Meal (lbs)
40
45
50
55
60
65
70
75
80
85
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