Determine the profit-maximizing price, Microeconomics

Assignment Help:

Determine the Profit-Maximizing Price

If a firm targets a 25 % rate of return on sales, and has unit costs of production of $100, what price should it charge if it uses cost-plus pricing?  If the firm has a demand function P = 10000 – 20Q is the cost-plus price the profit-maximizing price?  If not, determine the profit-maximizing price, quantity and corresponding profit.   Is the target rate of return the profit-maximizing r.o.r.? why or why not?  What important economic considerations, does cost-plus pricing ignore?


Related Discussions:- Determine the profit-maximizing price

Key elements in micro enviroment, what are key elements in micro enviroment...

what are key elements in micro enviroment of red bull

Tut10, 3. You plan to sell a sunglasses clip that you can attach to a car''...

3. You plan to sell a sunglasses clip that you can attach to a car''s sun visor. You can purchase the goods from a wholesaler at $2 a piece and there is an overhead cost of $500 pe

Price crimination, (ii) Find a real-world example of second-degree price di...

(ii) Find a real-world example of second-degree price discrimination. Describe the important aspects of your example in detail and analyze it using economic theory. In particular,

Control of monopolies and restrictive trade practices, Control of Monopolie...

Control of Monopolies and Restrictive Trade Practices Monopoly hampers economic growth by lowering output and increasing prices and has an anti-social impact. In India, the Monopo

Bonds, Contribution of bonds in n economy.

Contribution of bonds in n economy.

granger causality test, (Granger, 1969, 1988), where it can be addressed i...

(Granger, 1969, 1988), where it can be addressed in terms of a VAR (vector auto regression) system. If an export platform is important for the country, FDI inflows should result in

Elasticity of demand , The Bushman Cinema is the only movie theatre locate...

The Bushman Cinema is the only movie theatre located in the medium-size country town of Sleepy Hollow.  The owner wants to charge an admission fee of $10 per seat and past experien

A potato chip industry, run a s monopoly how will this benefit stakeholders...

run a s monopoly how will this benefit stakeholders involved, such as the goverment, businesses, and consumers?

Write Your Message!

Captcha
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