Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 13.1, Problem 1QQ
To determine
Price in the imperfect market.
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4. If Stopdecay does not change its price, the average monthly total revenue would be (Dropdown options: 240k, 195k, 200k, 162,500)
5. On the other hand, if it changes the price to sell the same number of units as it did before, the average monthly total revenue would be (Dropdown options: 231,920 or 241,440, or 160,000 or 172,480)
1. Explain the decisions taken for an individual
product.
PRICE
(dollars per unit)
2
QUANTITY
PRICE OR COST
(dollars per unit)
QUANTITY
MC
ATC
AVC
MR
Question 40
If the firm in the figure above raised the price of its product abvove $4, the firm would:
a. increase its profits
b. reduce its total revenue to zero
c. increase its total revenue but not its profits because costs would increase.
d. not affect revenues at all but profits would increase because costs decrease
e. none of the above
Chapter 13 Solutions
Economics (Irwin Economics)
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- 3. A local firm produces three types of pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week). Price Pizza A (Qd) Pizza B (Qd) Pizza C (Qd) 12 800 100 11 840 200 10 880 400 300 9. 920 800 400 8 960 1200 500 1000 1600 600 1040 2000 700 1080 2400 800 Plot the three demand curves, on one graph. a) Calculate the Market demand for Pizza. b) Calculate Price Elasticity of Demand for all three pizzas over the price range £9 to £10. c) For pizza C only, what price must be charged if the firm wishes to maximize its sales revenue? IIarrow_forwardGive typing answer with explanation and conclusion 1.Sara knits 20 scarves and sells them for $25 each. What is her total revenue? $50 $250 $45 $500arrow_forwardThe following graph illustrates the weekly demand curve for motorized scooters in Roanoke. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per scooter) 260 240 220 200 180 160 140 120 100 80 60 40 20 0 0 9 18 27 A X B Demand 36 45 54 63 72 81 QUANTITY (Scooters) 90 99 108 117 Total Revenue ?arrow_forward
- When food cost increase suddenly what action will the food service manager have to take to ensure that the business makes a profit.a) no change in selling price increase production and increase sales. b)no change in selling price increase production and increase sales .c) decrease selling price decrease production and increase sales.d) no change in selling price decrease production and increase salesarrow_forwardThe following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 8 60 40 20 0 mớ H + 0 9 18 27 36 45 54 63 72 81 QUANTITY (Bippitybops per day) * Demand 90 B 99 108 Total Revenue (?)arrow_forwardThe average revenue is defined as Select one: а. The revenue per unit. b. The variable cost per unit. C. The total revenue added to the total cost. d. The rate of change of total revenue with respect to the quantity demanded.arrow_forward
- A market research study of current and potential customers of drones found that “service after the sale” was their biggest issue with their current BATNO. If you were going to go into the business of building and selling drones, you would. A. Price your drones lower than the competition. B. Design a drone with a longer battery life (and therefore longer flight time) than what is currently available. C. Put a better camera in your drone than that which is currently available. D. All of the above. E. None of the above.arrow_forwardIn pricing a product cost works as a floor and customer perception of the value of a product works as a guide to price a product explain this ???arrow_forward5. Harry's Hardware realizes a markup of $34.50 if it sells an article at a markup of 40% of the selling price. a. What is the regular selling price? b. What is the cost? c. What is the rate of markup based on cost? d. If overhead expenses are 27% of cost, what is the break-even price? e. What is the operating profit or loss, if the article is sold for $75?arrow_forward
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