Reference no: EM131042688
For most products higher prices result in decreases demand whereas lower prices result in increased demand. Let d = annual demand for a product in units and p = price per unit.
Assume that a firm accepts the following price-demand relationship as being a realistic representation of the market:
d=800-p where p must be between $20 and $70
a. How many units can the firm sell at the $20 per unit price? At the $70 unit price?
b. What happens to annual units demanded for the product if the firm increases the per unit price from $26 to $27? From $42to $43? From $68 to $69? What is the suggest relationship between per unit price and annual demand for the product in units?
c. Show the mathematical model for the total revenue which is the annual demand multiplied by by the price per unit.
d. Based on other considerations the firms management will only consider price alternatives of $30, $40, and $50. Use your model from part b to determine the price alternative that will maximize the total revenue.
e. What are the expected annual demand and the total revenue according to your recommended price?
|
What do you think may be going through her mind
: What do you think about the timing of Debra's thoughts of suicide? She only learned of the diagnosis yesterday. What do you think may be going through her mind?
|
|
Review the literature on the healing modality
: Review the literature on the healing modality that you are going to observe. ( YOGA)
|
|
Specific evidence from machiavelli
: Citing specific evidence from Machiavelli's The Prince (not from the textbook), identify, and briefly explain, the qualities of the ideal political leader.
|
|
Higher return than if everhart uses debt
: b. Philippine debt has a high interest rate. Also, the peso will appreciate so the debt is even more expensive. Everhart should finance with dollar-denominated debt.
|
|
For most products higher prices result in decreases demand
: For most products higher prices result in decreases demand whereas lower prices result in increased demand. Let d = annual demand for a product in units and p = price per unit. How many units can the firm sell at the $20 per unit price? At the $70 un..
|
|
Philosophical contributions to ethics
: Examine how the execution of Socrates caused Plato to become disenchanted with Athenian democracy, leading him to make philosophical contributions to ethics, government, and metaphysics. How was Aristotle different than Plato? What lasting contrib..
|
|
Objective function representing total cost of shipments
: A retail store in Des Moines, Iowa, receives shipments of a particular product from Kansas City and Minneapolis. Let... write an expression for the total units of product received by the retail store in Des Moines. Shipments from KC cost $0.20 per un..
|
|
Rise of islam in its geographic
: Islam began as a religion of city dwellers but grew to include the loosely organized Bedouin tribal society populating the Arabian Peninsula. Trace the rise of Islam in its geographic, socio-cultural and religious environments. What are the basic ..
|
|
Prepare a schedule of cash receipts from debtors
: Fussy Hair Ltd has decided to prepare a cash budget for the quarter ending 30st September 2016. Prepare a schedule of cash receipts from debtors for the period ending 30th September 2016. Prepare a Cash budget for the Quarter ending 30th September 20..
|