Producing a razorblade

Assignment Help Business Economics
Reference no: EM132015026

Pretending the cost associated to producing a razorblade is $.20. If my company charges $.35 for one razorblade, customers on average buy 50 razorblades. Assuming the price elasticity of demand for blades is three. What price should the company charge for a razor and for a blade?

Reference no: EM132015026

Questions Cloud

Which theory of jurisprudence was he applying : Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United States declared war on Mexico.
Utility and marginal utility of good x : As more units of good X are consumed, what happens to utility and marginal utility of good X?
What is project payback period : An investment project provides cash inflows of $425 per year for eight years. What is the project payback period if the initial cost is $2376?
Various price discrimination strategies : What are the various price discrimination strategies that restaurants in NYC can use in targeting their customers?
Producing a razorblade : Pretending the cost associated to producing a razorblade is $.20. If my company charges $.35 for one razorblade, customers on average buy 50 razorblades.
Why is it difficult for company to raise capital : Why is it difficult for a company to raise capital when the economy is in recession?
Why would a small firm choose to delist their stock : Why would a small firm choose to delist their stock? Is there a particular reason for a company taking this route? What is the cost of going dark?
Calculate the loan rate to maintain two percent spread : Calculate the loan rate to maintain the 2 percent spread if the bank intends to hedge its exposure using the forward rates?
Define self-efficacy and self-esteem : Define self-efficacy and self-esteem. How are these concepts different? Which appears to be more important when raising children who will someday seek out.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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