Rule of thumb

Assignment Help Microeconomics
Reference no: EM13684173

(2) Advertising:
Assume a firm's advertising elasticity is known to be 0.8.
Assume a firm's advertising elasticity is known to be 0.8.
The firm's demand function is given by Q=100 - 2P. The firm charges a price of P=$3.50 for its product. Calculate the profit maximizing level of advertising per sale.

How does the "rule of thumb" for the profit maximizing advertising per sale level change if MC is equal to zero. Provide the new equation and explain!

Reference no: EM13684173

Questions Cloud

Evaluate how much of the rope unwinds in this time interval : A solid cylinder is mounted above the ground with its axis of rotation oriented horizontally. Determine how much of the rope unwinds in this time interval
Three factors play in the process of capital accumulation : Define the terms "constant capital," "variable capital," and "surplus value." What role do these three factors play in the process of capital accumulation?
Find what the overall angular magnification of microscope : The focal length of the eyepiece of a certain microscope is 19 millimeter. Find the overall angular magnification of microscope
Find what percentage of the original energy was lost : Assume cart 1 has mass 387 gram and initial velocity +v10 = 8.21 meter per second, and cart 2 has mass 980 gram. Find what percentage of the original energy was lost in this collision
Rule of thumb : How does the "rule of thumb" for the profit maximizing advertising per sale level change if MC is equal to zero. Provide the new equation and explain!
Determine where is the far point of an eye : Determine where is the far point of an eye for which a contact lens with a power of -1.10 diopters is prescribed for distant vision
Determine the electrostatic force between the two : The spheres are connected by a conducting wire. Determine the electrostatic force between the two, after equilibrium is reached
Weather devastation and hurricane effects : Weather devastation and hurricane effects
Describe the advantages and disadvantages of roe : Describe the advantages and disadvantages of ROE as a measure of corporate profitability. Which company has the lowest ROE?

Reviews

Write a Review

Microeconomics Questions & Answers

  1 a profit maximizing firm in perfect competition produces

1. a profit maximizing firm in perfect competition produces no dead weight loss but a profit maximizing firm in a

  Write the essential conditions for price discrimination how

1. why does price discrimination result in greater physician incomes than a single price to everyone?2. what are the

  Select an example of a company that you know practices

In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real compa..

  Find the minimum price the bus company must charge for each

the average cost per seat on the 50-passenger floating on air bus companys trip from kansas city to st. louis on which

  As an international economist you have been asked to

as an international economist you have been asked to prepare a short speech which answers the following questionshow

  D you think fed uses monetary policy to direct economy to

monetary policy is difficult when interest rates are low. for example in the early 2000s the bank of japan lowers the

  Suppose you now own a taxi company in aberdeen and you are

suppose you now own a taxi company in aberdeen and you are the sole producer of this service. you have a taxi monopoly

  How much will the firm produce in order to maximise profits

What market structure is used to benchmark allocative efficiency and why do we use it?  Illustrate and explain using a diagram

  Multiple choice questions - microeconomics

A company used a combination of inputs that was to left of its isocost line, it would indicate that

  What is the most that sold pay to complete development

The company that you manage has invested 5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales

  To decide the amount of state income tax

RedBall Productions is a new company based in Orem, Utah.RedBall supplies stock images of still photography.

  Determining government intervention-externalities

Can you please provide a real-world example of product (a good or service) which has either an external cost or external benefit associated with it and propose the government policy to adjust for the over- or underproduction of this 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