A firm in the market for designer jeans has some degree of monopoly power. The demand curve it faces has a price elasticity of d
1 answer:
A rule of thumb is used to determine if the monthly rent earned from a piece of investment property will exceed that property's monthly mortgage payment.
Using the rule of thumb pricing the profit-maximizing price of a monopoly firm is =
Ed is the elasticity of demand for a firm, not the market. So,
dollar.
Monopoly power (also known as market power) refers to the ability of a company to charge a price higher than its marginal cost. Monopoly power usually exists when demand is less elastic and barriers to entry are large.
There are three main sources of monopoly power: (1) price elasticity of demand (Ed), (2) number of companies in the market, and (3) interaction between companies. The price elasticity of demand is the most important determinant of market power for price rules: L = (P – MC) / P = -1 / Ed.
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Answer:
This profit equation is an equation of a parabola that opens downward (Since A=-0.07<0) and has its vertex at
Thus, revenue is maximized when x=250 hundred units. At this quantity maximum profit is
P(250)=3800.23 hundred dollars
b. Profits are maximised at x=250 hundred units. The per unit price at this is,
Answer
The cost of the one pound of the box is $0.974.
Explanation:
As given
Willis Rusch recently purchased a 5-pound box of treats for his dog.
The total purchase price was $4.87 .
i.e
Cost of 5- pound box = $4.87
Thus
Putting the values in the above
= $ 0.974
Therefore the cost of the one pound of the bos is $0.974.