What is the price at the point of profit maximization

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Reference no: EM131896717

1. A consumer buys 100 units of a good at a price of 5 units. When price changes, he buys 140 units. What is the new price if price elasticity of demand is (-) 2?

2. Based on the schedule below from Cheesecake Corporation, what is the price at the point of profit maximization?

Quantity Price Average Total Cost

7 10 6

8 9 5

9 8 6

10 7 7

3. The Masquerade Shop makes and sells costumes. The selling price of each costume is $73, and the average variable cost of each costume is $40. Their monthly fixed cost is $1000. If the store desires to make a profit of $3000 for the year, how much revenue must it earn per month?

4. Assume that oil and gas industry has 5 firms a,b,c,d and e. calculate market share for each of these firms.

Firms Sales ($)

A 5000

B 15000

C 10000

D 5000

E 25000

Reference no: EM131896717

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