Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Question: Sara is a dot.com entrepreneur who has established a Web site at which people can design and buy sweatshirts. Sara pays $1,000 a week for her Web server and Internet connection. The sweatshirts that her customers design are made to order by another firm, and Sara pays this firm $20 a sweatshirt. Sara has no other costs. The table sets out the demand schedule for Sara's sweatshirts.

           Price                               Quantity demanded
(dollars per sweatshirt)                (sweatshirt per week)

               0                                          100

              20                                           80

              40                                           60

              60                                           40

              80                                           20

             100                                            0

Calculate Sara's profit-maximizing output, price, and economic profit.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92420954
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question explain these questionswhy are monopolies bad for

Question: Explain these questions Why are monopolies bad for consumers and society? Can you give an example of a company that price discriminates by charging different customers different prices for the same product? Des ...

Quesyion intermediate microeconomicssuppose that a firms

Quesyion: Intermediate Microeconomics Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing marginal product in bo ...

Question the market demand for stuffed rabbits is q 2600 -

Question: The market demand for stuffed rabbits is Q = 2,600 - 20P, and the government intends to place a $4 per bunny tax on stuffed rabbit purchases (tax collected from sellers). Calculate the tax incidence and deadwei ...

Question describe your recommendations concerning the

Question: Describe your recommendations concerning the issues presented in "Carnival". The issues of the cruise ship Carnival that is facing today, what would your recommendations be? The response must be typed, single s ...

Question when a neighborhood is cleaned up and kept neat

Question: When a neighborhood is cleaned up and kept neat, there are a number of positive spillovers: higher property values, less crime, happier residents. What types of government policies can encourage neighborhoods t ...

Question omg inc has 4 million shares of common stock

Question: OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares are selling for $30 per share, the preferred shares are sel ...

Question special interests do not oppose regulations in all

Question: Special interests do not oppose regulations in all cases. The Marketplace Fairness Act of 2013 would require online merchants to collect sales taxes from their customers in other states. Why might a large onlin ...

Question suppose the government imposes a payroll tax of 1

Question: Suppose the government imposes a payroll tax of $1 per hour of work and collects the tax from employers. Use a graph for the market for labor to show the effect of the payroll tax, assuming the special case of ...

Question suppose that the substitution effect of an

Question: Suppose that the substitution effect of an increase in the wage is always larger than the income effect. Suppose the economy is on the low tax side of the Laffer curve. Determine the effect of increase in Total ...

Question an engineer is thinking of starting a part-time

Question: An engineer is thinking of starting a part-time consulting business next September 5,on his 40 birthday. He expects the business will require an initial cash outlay of $5000, to come from is savings, and will c ...

  • 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