Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

(1) Calculate the price elasticity of demand for the following demand functions:
(a) Q = 5 - ln(P) for P=8
(b) Q = 2000 - 0.5P3 for P=15
(c) Q = (12-P)^2 for P=10
(d) P= 2/Q for P=1


(2) Advertising:
Assume a firm's advertising elasticity is known to be 0.8.
The firm's demand function is given by Q=100 - 2P. The firm charges a price of
P=$3.50 for its product. Calculate the profit maximizing level of advertising per sale.


(3) How does the "rule of thumb" for the profit maximizing advertising per sale level
change if MC is equal to zero. Provide the new equation and explain!

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91223883

Have any Question?


Related Questions in Microeconomics

Question from september 2000 to march 2001 the sampp 500

Question: From September 2000 to March 2001, the S&P 500 index fell 27% and the US economy headed into a recession. From March 2002 to July 2002, the index fell another 27%, yet this time the recovery that was already un ...

Quesiton the catch-phrase of the eitc is make work pay to

Quesiton: The catch-phrase of the EITC is "Make work pay." To what extent does the EITC achieve its goal of encouraging work among low-income individuals? Are the results in line with predictions from economic theory? Ca ...

Question c 10 09 y-t i 80 g 65 and t 50imports and

Question: C = 10 + 0.9 (Y-T), I = 80, G = 65, and T = 50 Imports and exports are given by: IM = 0.3Y and X = 0.2Y* Foreign income (Y*) = 1000 (a) Draw representative graphs of the goods market and net-exports. Draw your ...

Question what price will the firm charge what will be its

Question: What price will the firm charge, what will be its optimal output level, and what is the firms total economic profit/loss? Please provide your own answers to those three questions. The response must be typed, si ...

Question in your own words but with accuracy state and

Question: In your own words but with accuracy, state and explain the second version of Kant's Categorical Imperative. Give an example and explain whether it accord with this imperative or not. The response must be typed, ...

Question despite airport precautions x hijacked an airplane

Question: Despite airport precautions, X hijacked an airplane in Chicago and forced the pilot, crew, and passengers to fly to New York. Upon reaching New York, X shot the pilot before giving up and surrendering to the Ne ...

Question find the errors was happened by public

Question: Find the errors was happened by public administrators The state government sold the city harbor 350 acres in 650.000 $ to the city, immediately, the city manager of city X designed an economic development packa ...

Question farmer brian has 3 acres of land which he farms

Question: Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 20 apple trees. However the 3 acres differ in their ability to support orange trees. He can grow 40 orange trees on the best la ...

Question the argument for free trade has been a main theme

Question: The argument for free trade has been a main theme of international trade economic theories for centuries. Donald Trump believes that a tariff of approx. 30-40% should be placed on products coming into America f ...

Question suppose coffee f and cream c are perfect

Question: Suppose coffee (F) and cream (C) are perfect, two-for-one complements and Jack spends his budget of $12 per day on these two goods. That is, assume that Jack likes one ounce of cream for every two ounces of cof ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved