Apple computers cost to produce the components the, Ask an Expert

Economics

Apple Computer's cost to produce the components, the headphones and the packaging it ships in comes to $21.77 for the iPod shuffle. That's about 28% of the device's retail price of $79.

a. Is Apple making $57 profit per shuffle? If not, explain Apple's other costs in terms of fixed and variable costs (give examples).

b. If Apple reduced its price for the shuffle, what do you think would happen to their profit? What impact would the price decrease have on their competitors? Explain by considering the elasticity of shuffles).

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9744466

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question an investment has an initial cost of 750000 an

Question: An investment has an initial cost of $7500.00, an annual maintenance and operating cost of $125.00 and will have a return of $1927.70 per year, and if the investment MARR is 15%. How long must the investment la ...

Problem suppose firms cost function is cq 4q 2 16a find

Problem: Suppose firms cost function is C(q) = 4q ^2 + 16 a) Find variable cost, fixed cost, average cost, average variable cost,and average fixed cost. (Hint: Marginal cost is given by MC = 8q) b) Show the average cost, ...

Question a group of 10 people have the following annual

Question: A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Calculate the share of total income received by each quintile of ...

1 the market demand function for corn isqdnbsp 15 -2pthe

1.) The market demand function for corn is Q d = 15 -2P. The market supply function is Q S = 5P - 2.5, both measured in billions of bushels per year. The initial equilibrium price is $2.5, and the initial equilibrium q ...

Question assume that x is produced in a perfectly

Question: Assume that X is produced in a perfectly competitive industry where firms that currently operate and potential competitors both have identical cost curves. Current output is 1 million units a year. What happens ...

Question in october 1987 the us stock market crashed with

Question: In October 1987, the US stock market crashed, with the Dow Jones Industrial Average falling 508 points, or 22%, in a single day. Yet the economy continued to prosper, with real GDP rising faster in the four qua ...

Question from the work it out effects of trade barriers you

Question: From the Work It Out "Effects of Trade Barriers," you can see that a tariff raises the price of imports. What is interesting is that the price rises by less than the amount of the tariff. Who pays the rest of t ...

Question thinking about famous corporate scandals like

Question: Thinking about famous corporate scandals like Enron and WorldCom, some analysts have suggested that these are the tip of the iceberg and that there are many other large corporations whose problems have not yet ...

Question topic should the minimum wage be eliminated left

Question: Topic: Should the minimum wage be eliminated, left alone, or increased? If you believe it should be increased, state how much it should be increased and why. Your Position Statements are to be no more than a th ...

Question we can think of return on an investment as a good

Question: We can think of return on an investment as a "good" and risk as a "bad." Now assume that A and B are both goods, that is, more of A is preferable to less of it, and likewise for B. What do indifference curves b ...

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

Recent Questions

Ask Microeconomics Expert