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kotegsom [21]
11 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]11 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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Consider the following two mutually exclusive projects:Year Cash Flow (X) Cash Flow (Y)0 ?$16,400 ?$16,400 1 6,660 7,190 2 7,240
pickupchik [31]

Answer:

1a. 7.12%

b. 6.99%

2. 9.69%

Explanation:

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

The IRR for project X :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $6,660

Cash flow in year 2 = $7240

Cash flow in year 3= $4760

IRR = 7.12%

The IRR for project Y :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $7,190

Cash flow in year 2 = $7,780

Cash flow in year 3 = $3530

IRR = 6.99%

The cross over rate is the rate that equates the cash flow from both projects.

The first step is to subtract the cash flow from project Y from the cash flow of project X

Cash flow for year 0 = $16400 - $16400 = 0

Cash flow for year 1 = $6,660 - $7,190 = $-530

Cash flow for year 2 =$7,240 -$7,780 =$-540

Cash flow for year 3 = $4,760 - $3,530 = $1230

The next step is to find the discount rate using a financial calculator.

Cash flow for year zero = 0

Cash flow for year one = $-530

Cash flow for year 2 =$-540

Cash flow for year 3 =$1230

Cross over rate = 9.69%

I hope my answer helps you

6 0
3 years ago
In which systems development life cycle do model developers use a model to generate functional requirements and physical design
Sergio [31]

The systems development life cycle in which model developers use a model to generate functional requirements and physical design specifications simultaneously is:

  • Prototyping life cycle

<h3>What is a Model?</h3>

This is a prototype which is used to represent a real thing to show the real life scenarios and applications on a much smaller scale.

With this in mind, we can see that in the prototyping life cycle, the model developers make functional requirements simultaneously to find out how the physical design specifications would look like.

Read more about life cycle here:
brainly.com/question/25754149

6 0
2 years ago
Company C has a machine that, working alone at its constant rate, processes 100 units of a certain product in 5 hours. If Compan
r-ruslan [8.4K]

Answer:

Therefore the constant rate of new machine should be 30 units per hour.

Explanation:

Given that,

Company C has a machine that, working alone at its constant rate.

In 5 hours it produced 100 units certain product.

In 1 hour it produced (100÷5) units certain product.

                                     =20 units.

So,the constant rate of this machine is 20 units per hours.

Company C buys a new machine.

If two machine are working together,

In 2 hours, they produces 100 units.

In 1 hour, they produces (100÷2) units=50 units.

The constant rate of both machines is 50 units per hours.

Since first machine produces 20 unit per hour.

Then, the new machine produces =(50-20) =30 units per hour.

Therefore the constant rate of new machine should be 30 units per hour.

7 0
3 years ago
The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales $ 9,300,000 Cost of
Nina [5.8K]

Question attached

Answer and Explanation:

Answer and explanation attached

4 0
3 years ago
Which of the following characteristics would lead the auditor to assess control risk at a higher level?a. It is difficult for th
Yuri [45]

Answer:

E. All of the above.

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3 years ago
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