I can't figure out this math equation for "The Importance of the Price Elasticity of Demand:...

I can't figure out this math equation for "The Importance of the Price Elasticity of Demand:

MC=P(1+(1/Ed))

My marginal cost(MC) is $50/month and that the price elasticity of demand (Ed) is -2.5, what price will maximize my firm's profits? $50=P(1+(1/-2.5))

Solutions

Expert Solution

In monopoly markets there is always a trade off between price and quantity . We know that monopoly profit maximization point is : MR = MC ( Marginal revenue = Marginal cost ) .

Price is = 83.33 $ ( approx)

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

I am supposed to map out the following and can't figure out how to do it!...

I am supposed to map out the following and can't figure out how to do it! Can somebody help? The experiment has to do with determining the simplest formula of potassium chlorate and to determine the original amount of potassium chlorate in a potassium chlorate-potassium chloride mixture by measuring the oxygen lost from decomposition. The chemical reaction is 2KClO3(s) ------> 2KCL(s) + 3 O2(g) I am supposed to map out 1. Mass of oxygen lost in the first part 2....

This is a question from Intro to Bayesian Statistics but I can't figure out what is...

This is a question from Intro to Bayesian Statistics but I can't figure out what is expected here. Derive the posterior distribution of obtaining heads in coin flips. The prior has p(θ = .25) = .25, p(θ = .50) = .50, and p(θ = .75) = .25. The data consist of a specific sequence of flips with 3 heads and 9 tails, so p(Data|θ) = θ^3 (1 − θ) ^9.

What is the computations for the following answers? I can't figure this one out. The following...

What is the computations for the following answers? I can't figure this one out. The following information relates to Hudson City for its fiscal year ended December 31, 2017. • During the year, retailers in the city collected $1,700,000 in sales taxes owed to the city. As of December 31, retailers have remitted $1,100,000. $200,000 is expected in January 2018, and the remaining $400,000 is expected in April 2018. • On December 31, 2016, the Foundation for the Arts pledged...

I have the answers for A through D. I just can't figure out the rest. Hercules...

I have the answers for A through D. I just can't figure out the rest. Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $78,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $34,800. A new piece of equipment will cost $230,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next...

Hey there! My professor wrote this vague problem on the board and I can't figure out...

Hey there! My professor wrote this vague problem on the board and I can't figure out how to solve it so --- I apologize in advance for any lack of clarity. 50.0 mL of 0.03M of Cysteine is titrated by 0.06M of NaOH pKa 2= 8.37 pKa 1 = 1.92 What is the pH of the solution..... 1) Before any titrant is added 2) 12.5 mL of NaOH 3) 25.0 mL of NaOH 4) 37.5 mL of NaOH 5) 50.0...

I can't figure this problem out! The problem is: Show the relationship between income and crime...

I can't figure this problem out! The problem is: Show the relationship between income and crime using indifference curves.

I am getting an error at linen 57 and can't figure out how to fix it....

I am getting an error at linen 57 and can't figure out how to fix it. // Java program to read a CSV file and display the min, max, and average of numbers in it. import java.io.File; import java.io.FileNotFoundException; import java.util.Arrays; import java.util.Scanner; public class Main { // method to determine and return the minimum number from the array public static int minimum(int numbers[]) { int minIdx = 0; for(int i=1;i<numbers.length;i++) { if((minIdx...

Looking for assistance on these three quick questions as I can't seem to figure them out....

Looking for assistance on these three quick questions as I can't seem to figure them out. Thanks in advance for your help! 1. Which of the following would decrease the depth of breathing? A. Increased arterial PCO2 B. Exercising C. Increased action potential frequency in neurons from the ventral respiratory group D. Acidic plasma pH E. Decreased action potential frequency in neurons from the dorsal respiratory group F. Overactivation of the respiratory center in the medulla 2. Which of the...

I can't figure out how to create the decision tree with the sending a messaged situation!...

I can't figure out how to create the decision tree with the sending a messaged situation! The crew of Endurance can visit two planets (Mann’s and Edmunds’). They can choose to visit neither planets, one of the two planets, or both planets. The characteristics of Mann’s planet are below: • 30% chance of finding a perfectly habitable planet • can support all of Earth’s current population if it is • can support none of Earth’s population if it is not...

I have two questions that need to be answered, I can't figure them out: 1) Steve...

I have two questions that need to be answered, I can't figure them out: 1) Steve Coleman has just won the state lottery and has the following three payout options for afterminus?tax prize? money:1. $ 152 comma 000$152,000 per year at the end of each of the next six years2. $ 318 comma 000$318,000 ?(lump sum) now3. $ 500 comma 000$500,000 ?(lump sum) six years from now The annual discount rate is? 9%. Compute the present value of the second...

Subjects