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natali 33 [55]
2 years ago
7

A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in it

s relevant market. Instructions: Enter your responses rounded to the nearest two decimal places. a. What price does this firm charge its customers
Business
1 answer:
MrRissso [65]2 years ago
7 0

Answer:

$116.28

Explanation:

This can be calculated as follows:

Mark up = [1 ÷ (1 - Lerner index)]

Price = Mark-up × Marginal cost

        = [1 ÷ (1 - 0.57)] × $50

Price = [1 ÷ 0.43] × $50 = $116.28  

Therefore, the price this firm will charge its customers is $116.28.

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A monopolistic seller of sports cars has traced out the following demand curve: 10 customers have willingness to pay (WTP) of $1
Romashka [77]

Answer:

The answer is: 1) II > I > III

Explanation:

<u>Pricing scheme I: $2 million profit</u>

  • Price $150,000
  • Contribution margin = $150,000 - $50,000 = $100,000
  • 35 units sold x $100,000 = $3.5 million
  • profit = $3.5 million - $1.5M = $2 million

<u>Pricing scheme II: 2.25 million profit</u>

  • Price $200,000
  • Contribution margin = $200,000 - $50,000 = $150,000
  • 25 units sold x $150,000 = $3.75 million
  • profit = $3.75 million - $1.5M = $2.25 million

<u>Pricing scheme III: $1.5 million profit</u>

  • Price $250,000
  • Contribution margin = $250,000 - $50,000 = $200,000
  • 15 units sold x $200,000 = $3 million
  • profit = $3 million - $1.5M = $1.5 million

8 0
2 years ago
Raj opens up a lemonade stand for two hours. He spends $10 for ingredients and sells $60 worth of lemonade. In the same two hour
prisoha [69]

Answer:

Accounting profit = $50

Economic profit = $10

Explanation:

Accounting profit = Revenue - Explicit cost

 $60 - $10 = $50

Economic profit = Accounting profit - Opportunity cost

$50 - $40 = $10

I hope my answer helps you

6 0
2 years ago
"what kinds of misunderstanding are likely to arise between an american company and a saudi enterprise, neither of which has exp
cestrela7 [59]
On the off chance that an American organization has a solid female nearness at that point there might be troubles because of the limitation puts on ladies in Saudi culture. Additionally, the Saudi predisposition against what they see as modest work could cause issues if an American organization does not comprehend it. Since American organizations have a tendency to advance construct more in light of experience it could cause issues that the Saudi depend more on family and individual associations
7 0
2 years ago
A toll tunnel has decided to experiment with the use of a debit card for the collection of tolls. Initially, only one lane will
erma4kov [3.2K]

Answer:

expect the customer to wait = 6.74  sec

1 car would expect to see in the system.

Explanation:

given data

arrive rate λ = 300 per hour

verify the debit card u = 1 card per 5 second = 720 card per hour

solution

L(q) = 300² ÷ ( 2 × 720 (730-300) )  

L(q) = 0.1453

L(q) = 2.0833

and

L(s) = 0.1453 + 300/720

L(s) = 0.5619   W(s)

so

expect the customer to wait = 0.5619 ÷ 300

expect the customer to wait =0.001873  

expect the customer to wait = 6.74  sec

and

L(s) 0.5619 = 1 cars

so 1 car would expect to see in the system.

5 0
2 years ago
You are driving your car and there is a motorcyclist ahead of you, riding in the left part of your
gregori [183]

Answer:

Lane splitting is riding a bicycle or motorcycle between lanes or rows of slow moving or stopped traffic moving in the same direction. It is sometimes called whitelining, or stripe-riding. This allows riders to save time, bypassing traffic congestion, and may also be safer than stopping behind stationary vehicles.

Explanation:

8 0
2 years ago
Read 2 more answers
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