What are the optimal markups for widgets and gadgets

Assignment Help Econometrics
Reference no: EM13232685

Given the information below what are the optimal markups for widgets and gadgets?

Marginal revenue = Price(1 + 1/Price elasticity)
since price is positive (always) so we can ignore that part when determining the sign of MR
MR is negative if 1+1/elasticity is negative and positive if its positive
For gadgets: 1/-1.5 = -.66667 , 1+-.6667 > 1 , so MR is positive
For widgets 1/-.75 = -1.3333, 1+-1.33333 = -.3333 so MR is negative

Reference no: EM13232685

Questions Cloud

Is the new waiting time at lhs less than : During busy periods, a new customer walks into LHS every 15 mins. (with a standard deviation of 15 mins). At SHC, a customer walks in every hour (with a standard deviation of 1 hour) LHS has a staff of 4 barbersm while SHC has 1 barber.
Convert the following two''s complement to decimal numbers : Convert the following two's complement representations to decimal numbers (assume 5 bit numbers). a. 11101 b. 01111 c. 10011
Explain the chromosomal dna and plasmid dna : What is the overall purpose of a mini-prep, How many genes can fit on a typical plasmid, By what process is chromosomal DNA separated from plasmid DNA
What are some of the problems with the liberalization trend : The continual liberalization of economic supplements appears to be advantageous, at least on the surface. What are some of the problems and/or issues with this liberalization trend
What are the optimal markups for widgets and gadgets : Given the information below what are the optimal markups for widgets and gadgets Marginal revenue = Price(1 + 1/Price elasticity) since price is positive (always) so we can ignore that part when determining the sign of MR MR is negative if 1+1/elasti..
Add the following numbers in two''s complements : Given four bits, add the following numbers in two's complements. a. - 4 + (- 1), b. -7 + 3, c. -5 + 4
Calculate the average number of customers waiting at lhs : calculate the average number of customers waiting at LHS. Explain how you would decide the number of seats the LHS facility should have for waiting customers
Compute the equilibrium constant for the unknown reaction : Given the following equilibrium constant at 25 C, calculate the equilibrium constant for the unknown reaction below.
Which programs can the us do without right now : Do you have any suggestions for where the government may need to cut spending to lessen the deficit that is increasing due to the tax cut Which programs can the U.S do without right now

Reviews

Write a Review

Econometrics Questions & Answers

  What is the future value in 40 years of the income

According to U.S. Census Bureau data (2004), average monthly income for a person with a degree in engineering was $5296 versus $3443 for a degree in liberal arts. What is the future value in 40 years of the income difference at an interest rate of..

  Calculate the herfindahl- hirschman index value and the cr4

The market shares below are hypothetical and should not be cited in any paper you write in a future business class. General Motors = 24% Toyota = 20% Ford = 16% Honda = 12% Chrysler = 10% BMW = 7%

  How much labor should the firm employ in the short run

Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is constant at $50 per unit. The production function is F(L,K)=L^1/2*K^1/2 If the current capital stock is fixed at 1,600 units, how much labor should..

  What is the present value of the deferred-funds flow

A sum of $16,000 per year will be recieved uniformly over a five year period beginning two years from today. What is the present value of this deferred-funds flow if interest is compounded continuously at a nominal rate of 9%

  What rate of nominal wage growth will workers seek

Assume that workers, employers and investors all believed that inflation in the coming year would equal the annualized rate of inflation experienced in the past 6 months. Also assume that workers had been receiving nominal wage gains of 5% during ..

  What will taxpayers federal income tax be

He is considering an additional activity expected to increase his adjusted gross income. If this increase is 16000 and there should be no charge in non business deductions or exemptions, what will be the increase in his federal income tax

  What is the probability that he or she is a coalition voter

Suppose it is known that 45% of the population are Coalition voters, 45% are ALP voters, and 10% vote for Greens.

  What pricing scheme would maximize overall weekly profit

As a budding entrepreneur, you have purchased a small bakery. After some market research, you have estimated that your customers' willingness to pay for a donut/coffee combo falls into 9 categories ($2.75, $2.50, $2.25, $2.00, $1.75, $1.50, $1.25,..

  How much firm will produce in a perfectly competitive market

A firm in a perfectly competitive market will produce 0 output in the short run if the price in below $20 but will produce if the price is above $20. The smallest quantity they will produce in the short run is 6. The minimum of ATC is $447.75

  Determine what is the net cash flow after tax

The Lone Pine Gold Company (LPG Co.) purchased its corporate headquarters office building for $390,000 in Lone Pine, California on May 18, 2002. After some remodeling and refurbishing that cost $56,000, the company placed this building in service ..

  How much will be supplied by the dominant salon

The marginal cost function of all the small salons together is SMCF = 4 + .1Q, and the marginal cost function of the dominant or leading salon is MCL = 7 + .1Q. (c) If the large salon forms a centralized cartel. what would be the best level of out..

  Determine the total revenue

A firm has Total Costs (TC) of $12,000 over the next three months (TOTAL for the 3 months - not per month), of which $8,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm..

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