Marginal revenue and marginal cost

Assignment Help Business Economics
Reference no: EM132445823

Rapido, the shoe company, is so popular that it has monopoly power. It's selling 20 million shoes per year, and it's highly profitable. The marginal cost of making extra shoes is quite low, and it doesn't change much if they produce more shoes. Rapido's marketing experts tell the CEO of Rapido that if it decreased prices by 20%, it would sell so many more shoes that profits would rise. If the expert is correct, at its current output, what can you infer about its marginal revenue and marginal cost?

Reference no: EM132445823

Questions Cloud

Draw diagrams of the production function and labor market : Draw diagrams of the production function and labor market and label the appropriate curves. Also show the equilibrium values in this problem.
Marginal cost of an additional ton of steel : Suppose that the marginal cost of an additional ton of steel produced by a Japanese firm is the same whether the steel is set aside for domestic use
How does Fup the duck embody a wild-domestic binary : How does Fup the duck embody a wild-domestic binary? How do Tiny's fences embody a wild-domestic binary?How do wild pigs embody this binary?
Concepts of comparative and absolute advantage : Discuss the concepts of comparative and absolute advantage, absolute advantage and terms of trade.
Marginal revenue and marginal cost : If the expert is correct, at its current output, what can you infer about its marginal revenue and marginal cost?
Explain any accident happened in Los Angeles or San Diego : Explain any accident happened in Los Angeles or San Diego ,Describe a specific high impact traffic incident you know about or observed and identify
What is the effect of using these groups : What is the effect of using these groups as a basis for judging yourself and How might you view yourself differently if you used other reference groups as basis
Determine number of units of Widgets for Dorchester : During FY 2019, Dorchester Company plans to sell Widgets for $15 a unit. Determine the number of units of Widgets for Dorchester to breakeven
Describe the assumptions associated with each of tools : Describe the assumptions associated with each of the tools and what the assumptions mean in your own words. How can the data be misinterpreted? Explain.

Reviews

Write a Review

Business Economics Questions & Answers

  Won the state lottery

You have won the state lottery. There are many ways in which you can receive your prize. You can either have $1 million in cash now or you can have $1.2 million that is paid out as follows: $300,000 now, $300,000 in one year's time, $300,000 in 2 yea..

  What are the corresponding retail and wholesale prices

What are the corresponding retail and wholesale prices? What would happen if the sales are switched from the retail to the wholesale and vice versa?

  Use the loanable funds theory

Suppose that a war in other countries led to higher government spending in those countries and all else remains unchanged. Use the loanable funds theory to identify whether supply and/or demand changes in the non-warring countries.

  Calculate the standard error of the proportion of households

a) Calculate the standard error of the proportion of households spending more than $100 per week on groceries (to 4 decimals).

  Communitarian theory and natural law-egalitarian theory

Contrary to some contemporary writers who appear to base human rights on the decisions of governmental officials, human rights are more securely based on _____________, which can be traced back from the works of modern thinkers such as Locke & Jeffer..

  Determine the minimum percentage of women in canada

Using Chebyshev's Theorem, determine the minimum percentage of women in Canada whose life expectancy is between 64 and 83.5 years.

  Illustrate what will level of consumption and trade balance

If country desires to smooth consumption, explain how much it should borrow in period 0. Illustrate what will level of consumption and trade balance is from then on.

  Rent reservation wage and efficiency wage

What are the advantages and disadvantages of giving unemployment benefits to the unemployed? Do you support this or not?

  Products is related to the state of the economy

The demand for MICHTEC's products is related to the state of the economy.

  The stolper-samuelson theorem predicts

The Stolper-Samuelson Theorem predicts: (a) the level of productivity in export industries (b) which factors are abundant (c) the factor income distribution effects of trade (d) which goods will be exported

  Gasoline taxes are effective means for raising tax revenue

Explain whether increases in gasoline taxes are effective means for raising tax revenue. Circa 1990 Colorado decided that long-haul truckers needed to pay for a larger proportion of the wear and tear on the state's highways and increased the tax on d..

  Business and operates in a perfectly competitive market

Beth’s Lawn Mowing Service is a small business and operates in a perfectly competitive market. The costs function for Beth’s company is given by: total cost (TC) =0.1q2 + 10q + 50 and marginal cost (MC)=0.2q + 10, where q=the number of acres Beth cho..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd