The variable cost every unitcompany decided to raise price

Assignment Help Business Economics

Reference no: EM1317905

Q1. A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%. Explain how much change in the number of units sold can the company afford and still be no worse off?

Q2. You are the manager of a monopoly. A typical customer's inverse demand function for your firm's product is P = 100 - 20Q and your cost function is C(Q) = 20Q.

a. Determine the optimal two-part pricing strategy.

b. Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price?

Reference no: EM1317905

Questions Cloud

Find the largest and smallest revenues your company : Application of differential calculus: Maximization and Minimization - what are the largest and smallest revenues your company your company can make under this deal?

Probability of answering question correctly : Find the probability that he will answer at least 3 questions correctly.

Importance of understanding traits : Discuss the importance of understanding traits, skills, and the styles approach to leadership during the process of leadership development.

Illustrate lornes decision if he decides to work : Using an indifference curve, illustrate Lorne's decision if he decides to work 10 hours every day.

The variable cost every unitcompany decided to raise price : A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%.

Solving equation using substitution method : Solving equation using substitution method.

Explain how much additional profit do you earn using a two : Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price.

Identify an ethical framework : Identify an ethical framework other than Free Market Ethics that applies to this situation and discuss how it may have influenced the executives of the company.

Calculate the rate, distance and time : Calculate the rate, distance and time.

User Account

All Pages