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vitfil [10]
2 years ago
5

A firm in the market for designer jeans has some degree of monopoly power. the demand curve it faces has a price elasticity of d

emand of negative 4−4​, while the price elasticity demand of the market is negative 3.5−3.5. ​moreover, the firm has a constant marginal cost of ​$65.0065.00. using the rule of thumb for​ pricing, calculate the​ firm's profit-maximizing price.
Business
1 answer:
Pavlova-9 [17]2 years ago
5 0

Answer:

$86.67 is the profit maximizing price for the monopolist

Explanation:

In order to find the profit maximizing price for the monopolist using its price elasticity and marginal cost we have to use the formula

Price= Marginal cost* (elasticity/elasticity+1)

Marginal cost = $65.0065

Elasticity = -4

Price = 65.0065 *(-4/-4+1) = 65.0065*(-4/-3)= 86.67

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Both Mia and Mario specialize in producing the item in which they have a comparative advantage. Then they trade one pasta dish f
FrozenT [24]

Answer:

The total gains from trade are​ <u>4</u> dishes of pasta and​ <u>4</u> pizzas an hour.

Explanation:

Before specialization, Mia and Mario each produced 4 dishes of pasta and 4 pizzas per hour. After specialization, Mia is able to produce 12 dishes of pasta, and Mario is able to produce 12 pizzas per hour.

After specialization and trade, the total maximum combined output per hour is 12 dishes of pasta and 12 pizzas. Before specialization, the total maximum combined output per hour was 8 dishes of pasta and 8 pizzas. So the net gain of specialization and trade is 4 dishes of pasta and 4 pizzas per hour.

4 0
2 years ago
Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing
Softa [21]

Answer:

$14,016 favorable

Explanation:

The computation of the raw materials price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

= 23,360 liters × ($5.40 - $4.80)

= 23,360 liters × $0.6

= $14,016 favorable

We simply deduct the actual price from the standard price and then multiplied it by the actual quantity so that actual value can come

8 0
2 years ago
Carmen is a member of a student taskforce that was asked to recommend solutions to the university's budget problem. when she not
9966 [12]

Answer: democratic leadership

Carmen stated a possible solution that was increasing tuition fee and then Carmen said that it should be considered. This means that she did not impose it that that is the only solution and that has to be done in any way, if she did then it would’ve been autocratic leadership.

Carmen left some room for discussion and this means it is a democratic approach in leadership.  


8 0
2 years ago
Security M has expected return of 17% and standard deviation of 32%. Security S has expected return of 13% and standard deviatio
Murljashka [212]

Answer:

0.047424

Explanation:

Given that

Expected return of security M = 17%

Standard deviation of Security M = 32%

Expected return of security S = 13%

Standard deviation of security S = 19%

And, the correlation coefficient = 0.78

So, by considering the above information the co variance is

=  Correlation coefficient × Standard deviation of Security M × Standard deviation of security S

= 0.78 × 0.32 × 0.19

= 0.047424

5 0
2 years ago
The unusual types of ingredients Vosges uses, as described in the video, are part of which elementof the four Ps?
Inga [223]

Answer:

B. product

Explanation: the unusual ingredients are part of the product.

6 0
2 years ago
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