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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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Mrs. Jones always wanted a white picket fence in front of her house. Mr. Jones, her husband, wants a fence around the entire hou
Kazeer [188]

Answer:

The dimensions for the entire area will give the cheapest cost for the entire fence are 40 feet in front, 100 feet on each side, and 40 feet on bottom.

Explanation:

Since Mrs. Jones always wanted a white picket fence in front of her house, and Mr. Jones, her husband, wants a fence around the entire house including a decently-sized lawn in the front and a garden in the back, and the fence border should look like a rectangle, and I have calculated that he would need to fence off an area of ​​4,000 square feet in order to fit all these things, and he wants to appease his wife and at least build the white picket fence in front of the house, and he plans to build the rest of the fence with chain link, a cheaper material, given that a white picket fence costs $ 7 per foot and a chain link fence costs $ 4 per foot, to determine what dimensions for the entire area will give the cheapest cost for the entire fence, the following calculation should be performed:

Area of ​​a rectangle = base times height = Z x Y = 4,000

80 x 50 = 4,000

40 x 100 = 4,000

20 x 200 = 4,000

20 x 7 x 2 + 200 x 4 x 2 = X = 280 + 1600 = 1880

40 x 7 x 2 + 100 x 4 x 2 = X = 560 + 800 = 1360

80 x 7 x 2 + 50 x 4 x 2 = X = 1120 + 400 = 1520

Therefore, the dimensions for the entire area will give the cheapest cost for the entire fence are 40 feet in front, 100 feet on each side, and 40 feet on bottom.

8 0
2 years ago
The act of influencing others to accomplish an objective is typically seen in which of the following environments? a. Business e
Juli2301 [7.4K]

Answer:

D- All of the above

Explanation:

Edg. 2021, took the test and got 100 percent

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2 years ago
Jeff jones earns $1,200 per week. he is married and claims four withholding allowances. the social security rate is 6.2% on $118
myrzilka [38]
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Which of the following has the greatest impact on your cash flow?
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Answer:

 

Low-priced inventory with high turnover

Explanation:

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6 0
2 years ago
As the average hourly wage increases from $22 per hour to $28 per hour, the quantity demanded of Americano coffees increases fro
KIM [24]

Answer:income elasticity of demand for Americano coffees = 0.55

Explanation:

Income Elasticitity of demand = percentage change in quantity demanded / Percentage change in income

which can easily be calculated using

Income Elasticitity of demand =(New quantity  demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.

new income = $28

old income=$22

new quantity= 3450

old quantity=3000

Bringing down our formulae

Income Elasticitity of demand =(New quantitry  demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.

= {(3450-3000) /3000} /{(28-22)/22} =(450/3000) /(6/22) = 0.15/0.2727=0.55

income elasticity of demand for Americano coffees = 0.55

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6 0
2 years ago
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