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inna [77]
2 years ago
9

Seth owns a local business that provides email updates on surf conditions. He is the only supplier of these email updates in San

ta Barbara and Goleta, which gives him a monopoly in both cities. The marginal cost of producing another update is zero (and we'll ignore fixed costs). The inverse demand for these updates in Santa Barbara is p = 74-q and the inverse demand in Goleta is p = 39 - 4q. Suppose Seth charges different uniform prices in SB and Goleta. If Seth sets each price such that he is maximizing his total profits, what are Seth's total profits?
Business
1 answer:
klasskru [66]2 years ago
6 0

Answer:

Seth's total profits is $1,535.359

Explanation:

According to the given data we have the following:

MC = 0 and we will ignore fixed costs

Therefore TC = 0  

Demand function in Santa barbara is

p = 74 - q  

MR = 74 - 2q

Since Seth sets different uniform prices in two markets to maximizes his profit therefore ,

MR = MC  

74 - 2q = 0  

2q = 74

q=37

p = 74 - 37 = 37

Profit = pq - TC

= 37*37 - 0  

= $1,369

Inverse demand finction Goleta is

p = 39 - 4q

MR = 39 - 8q

MR = MC

39 - 8q = 0  

8q = 39

q = 4.875

p = 39 - 4.875 = 34.125

Profit = pq - TC  

= 34.125*4.875 - 0  

= $166.359

Therefore, Seth's total profits =  $1,369 + $166.359

Seth's total profits= $1,535.359

Seth's total profits is $1,535.359

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Answer:

the government's sovereign immunity

Explanation:

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7 0
2 years ago
Improving business processes by reengineering them, benchmarking specific activities against industry leaders, encouraging emplo
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Answer: (C) Piecemeal productivity improvements

Explanation:

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  Therefore, Option (C) is correct answer.

4 0
2 years ago
​Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units is​ 7,000 a
spayn [35]

Answer:

$12,000

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= 96,000 - 84,000

= $12,000

7 0
2 years ago
Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a Commodities corporate officer, gives Brenda written
son4ous [18]

Answer:

Yes, the firm Commodities Exchange Corporation is liable to E-products Inc. as it has entered into a contract with Brenda who had written authority to buy on behalf of the firm.

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Indeed, the risk of Commodities stretches out to E-Products. This is mostly a direct result of the risk of the chief is towards the operator for the agreement the specialist is the gathering in the interest of the head. Aside from this, there is an express power having a place with Brenda as she was given the approval from the head. Because of express, an evident position E-Products got the affirmation that Commodities is being spoken to by Brenda.

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4 0
2 years ago
Owen expects to receive at the end of next year from a trust fund. If a bank loans money at an interest rate of ​, how much mone
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Answer: a) $18,605

Explanation:

The amount he can borrow today will be an amount that when grown at a rate of 7.5% per year will equal $20,000 in a year.

20,000 = Amount + ( Amount * rate * time)

20,000 = Amount + (7.5% * Amount)

2,000,000 = 1.075 * Amount

Amount = $18,605

4 0
2 years ago
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