The company wants to earn a 20 return on sales. atcmc10., Ask an Expert

Economics

Calculating the optimal price using the arc formula for elasticity.

If the price is $15 the company sells 27 units. If price is $12, the company sells 42 units. The company wants to earn a 20% return on sales. ATC=MC=$10. How do I determine the optimal price using the linear approximation method, cost plus pricing and mark-up pricing. How does the arc formula for elasticity factor in to these equations?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M926279

Have any Question?Write your Review or question?

Related Questions in Business Economics

Given two eventsnbspgnbspandnbsph the probabilities of

Given two events G and H , the probabilities of each occurring are as follows: P( G ) = 0.22; P( H ) = 0.34; P( H AND G ) = 0.09. Using this information: Find the complement of P ( H AND G ). Round to 2 places.

Economics - unemploymentwhat kind of monetary and fiscal

Economics - Unemployment What kind of monetary and fiscal policies could be introduced to reduce unemployment? Why would we expect these policies to have inflationary consequences? Illustrate your answer diagrammatically

In the summer of 2013 walt disney released the lone ranger

In the summer of 2013, Walt Disney released The Lone Ranger, starring Johnny Depp and produced by Jerry Bruckheimer. The film bombed at the box office: Worldwide, it earned about $245 million in revenue, well below the $ ...

In an inquiry into the nature and causes of the wealth of

In an inquiry into the nature and causes of the wealth of nations, Adam Smith listed three reasons for productivity to increase with specialization. What are these three reasons?

One study based on responses from 1 013 randomly selected

One study, based on responses from 1, 013 randomly selected teenagers, concluded that 43% of teenagers cite grades that their greatest source of pressure. Use a 0.05 significance level to test the claim that fewer than h ...

A sample of 36 us households is taken and the average

A sample of 36 U.S. households is taken and the average amount of newspaper garbage or recycling is found to be 27.8 pounds with a standard deviation of 2 pounds. Estimate, with 99% confidence, the mean amount of newspap ...

1 for each of the following write out the null and

1. For each of the following, write out the null and alternative hypotheses, and indicate whether it is a one-tail or two-tail hypothesis test a) Do Canadian children whose parents are librarians do better than Canadian ...

A company is considering producing a new product based on

A company is considering producing a new product. Based on past records, management believes that there is a 70 percent chance that the new product will be successful, and a 30 percent chance it will not be successful. M ...

Simplifya factor and find the vertex form x2 6x 8b factor

Simplify a) Factor and find the vertex form x^2 +6x + 8 b) Factor the h value of of the vertex of 2x^2 - 10x - 30 c) Find the x-intercept and y-intercept of 5x - 4y=30

Chebyshevs theorem is used to approximate the proportion of

Chebyshev's theorem is used to approximate the proportion of observations for any data set, regardless of the shape of the distribution. Assume that a distribution has a mean of 255 and standard deviation of 20. Approxim ...

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 Business Economics Expert