Imperfect competitive market

Assignment Help Microeconomics

Reference no: EM1367067

In the imperfect competitive market of jeans, Lean Jeans, Inc., recently offered rebates of $1 off the regular $50 price. Quantity sold jumped 4 more jeans from the previous 100 figure the previous month.

A. Calculate the arc price elasticity of demand for Lean Jeans.

Based on the previous question and using markup pricing,

B) If marginal cost per unit is $20, was the original $50 price optimal?

C) What would be the optimum price?

Reference no: EM1367067

Questions Cloud

Determine the risk : Explain how Jenny might optimally invest $1,000,000 in a portfolio of financial assets to earn an expected return of 14 percent per annum and determine the risk that she would face in doing so.

Describing laws of demand and supply : Describe the law of demand. Why does a demand curve slope downward? What are the determinants of demand? What happens to the demand curve when each of these determinants changes?

Practice of strategic planning : Describe what is meant by the concept and practice of the strategic planning.

Write functions and steps for various window applications : Write down the functions and steps involved in various window applications. What is mail merge? Enumerate the steps involved in mail merge.

Imperfect competitive market : In the imperfect competitive market of jeans, Lean Jeans, Inc., recently offered rebates of $1 off the regular $50 price. Quantity sold jumped 4 more jeans from the previous 100 figure the previous month.

Calculating the quarterly payment : A student lend $4000 from a credit union toward buying a car. The interest rate on such a loan is 14 percent compounded quarterly, with payments due each quarter.

Describing law of diminishing marginal productivity : What is the law of diminishing marginal productivity? How does it differ from average productivity?

Complications of cancer : Explain at least three complications of cancer, the side effects of treatment, and methods to lessen physical and psychological effects.

Methods to combat technical-nontechnical attacks in wan : Explain a security strategy for a corporate WAN. Be sure to include methods to combat both technical and nontechnical attacks.

User Account

All Pages