Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Calculating Optimal Price Given Price Elasticity of Demand.

Given the price elasticity of demand for your product is 0.85, your marginal cost is 50 when you produce 1000 units, use the Lerner Index to find out your price mark-up. What is your optimal price if you produce 1000 units?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M925409

Have any Question? 


Related Questions in Business Economics

1 why does robert reich refer to wealthy people politicians

1. Why does Robert Reich refer to wealthy people, politicians, lobbyists, and large corporations as "economic bullies"? 2. How do you feel about this issue and its importance to our economy now that you understand it bet ...

Consider the production functiony akalphal betawhere y

Consider the production function Y = AKαL β where Y represents output, K and L represent the inputs of capital and labor, and A is total factor productivity. The coefficients α and β are positive. a. Show that this produ ...

John has a factory that produces paper and as a side

John has a factory that produces paper and as a side product some chemicals are thrown into the water: one unit of the pollutant per unit of paper. The marginal benefit to John of producing paper is given by MB = 10 – Q. ...

If the price measured in a common currency of a particular

If the price measured in a common currency) of a particular basket of goods is 13 percent higher in the U.S than it is in the United Kingdom, which country country's currency is overvalued, according to the theory of pur ...

Tramson corp has experienced steady increases in its

Tramson Corp has experienced steady increases in its inventory turns over the past several years. Indicate the impact of this on the company's current ratio, quick ratio, and statement of cash flows, respectively. a. Dec ...

Which of the following is true regarding tort litigation

Which of the following is true regarding tort litigation? Tort litigation has been declining significantly since 2000. Tort litigation has been declining slightly since 2000. Potential tort liability should concern a com ...

Consider the graph below1 under perfect competition what is

Consider the Graph below: 1. Under perfect competition, what is the equilibrium price? 2. What is the economic profit under monopoly? (in millions) 3. What is the economic profit under perfect competition? (in millions)

1 an operator is considering two options to improve the

1. An operator is considering two options to improve the production from an oil well. Option 1 requires that the well be stimulated at a cost of $10,000 with an increase in production of 5 bbls/day for a one year period. ...

You are a currency trader that is always seeking to make

You are a currency trader that is always seeking to make triangular arbitrage profits in the FX market. You notice the following quotes by three different banks today. DBS Bank LTD -> The Singapore dollar—U.S. dollar (S$ ...

Economics assessment individual critical analysispurpose to

Economics Assessment: Individual Critical Analysis Purpose: To allow students to research and critically analyse an evaluate the macroeconomic performance of an economy. Topic: Analysis and evaluation of Macroeconomic pe ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate