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kotegsom [21]
9 months ago
7

Consider the demand equation q=20,000 p^(-1.4). if the cost of production is constant at $0.50 per unit then what is the optimal

price to maximize profit?
Business
1 answer:
skelet666 [1.2K]9 months ago
4 0

Consider the demand equation q=20,000 p^(-1.4). if the cost of production is constant at $0.50 per unit $1.75 is the optimal price to maximize profit.

The income maximization system depends on income general sales overall fee. consequently, a firm maximizes earnings while MR = MC, that is the primary order, and the second order depends on the first order. This idea differs from wealth maximization in phrases of length for income earnings and the company's goals.

Calculation,

The demand equation q=20,000 p^(-1.4)

The production constant is $0.50

maximum profit= $1.75

The choicest charge is that charge point at which the total earnings of the seller are maximized. while the rate is just too low the vendor is shifting a big quantity of devices but income is the best possible combination of income. Examples of income maximizations like this encompass: discovering less expensive raw materials than those presently used. discover a provider that gives better charges for inventory purchases. locate product resources with decreased delivery prices. lessen labor expenses.

Learn more about The optimal price here:-brainly.com/question/28332226

#SPJ4

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Answer:

$ 25

Explanation:

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3 years ago
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Answer: It can be deduced that it's unethical for your employees to use their work computers for personal activities?

Explanation:

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Furthermore, it's ethical for you to monitor computer usage. This is necessary to checkmate the activities of the employees.

8 0
2 years ago
All of the following are types of operating costs except
makvit [3.9K]

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B. Equity Capital

Explanation:

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3 0
3 years ago
Suppose you use Solver to find the optimal solution to a maximization model. Then you remember that you omitted an important con
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8 0
3 years ago
Read 2 more answers
The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for t
Pachacha [2.7K]

Answer:

Adjusted accounting profit - $63,200

Cash inflow / Outflow - $63,200

Depreciation Tax shield - $63,200

Explanation:

Revenue - $188,000

Variable cost ($57,000)

Contribution                                             $131,000

Rental cost  ($37,000)

Depreciation (17,000)

                                                                  ($54,000)

PBIT                                                              77,000        

Income Tax (40%)                                        (30,800)

Net Income                                                   46,200

A) Adjusted Accounting profit

Add back non cash expenses (depreciation) = 46,200+$17000 =$63,200

B)Cash Inflow/Outflow

Revenue                                        $188,000

Variable cost                                   (57,000)

Rental cost                                       (37000)

Income Tax                                      (30,800)

                                                         $63,200

C Depreciation Tax Shield

Tax shield =40%*17,000= $6800

Cash income from operation (EBITDA*(1-tax rate) = 56,400

Add back $6,800 =                                                           6,800

                                                                                           $63,200

                                   

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