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3 years ago

What is the profit maximization rule equation?

Business

1 answer:

ValentinkaMS [17]3 years ago

6 0

Answer:

mc=mr

Explanation:

This is because in economics, the profit maximization rule is represented as MC = MR, where MC stands for marginal costs, and MR stands for marginal revenue. Companies are best able to maximize their profits when marginal costs -- the change in costs caused by making a new item are equal to marginal revenues............................

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A project manager has to manage tasks and identify schedule problems during the

BabaBlast [244]

Duration of the project. from start to end

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3 years ago

Text Problem 5

Alik [6]

Answer:

Please find the answer in the attached image

Explanation:

Please find attached the table used in answering this question

Marginal benefit is the change in total benefit when consumption is increased by one unit

Please find attached the image used in answering this question

4 0

3 years ago

After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you

Olenka [21]

Answer:

1. if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

2.If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

3. if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.

The income elasticity is given as 3 , it means that demand is elastic. So if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls.

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitutes goods.

Substitute goods are goods that can be used in place of another good.

If the cross price elasticitiy is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Because the cross price elasticity between Chevrolet Camaro and Ford Mustangs is positive, it means they are subsituite goods. So, if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

Because the cross price elasticity of demand between gasoline and Ford Mustangs are negative, they are complementary goods.

If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

8 0

3 years ago

Fresnas Corp., a company that designs in its New York headquarters and had manufactured apparel in Malaysia, now practices insho

PIT_PIT [208]

Answer:

it keeps its research team in close proximity

Explanation:

Inshoring refers to the process of moving a business operation from overseas to the country of origin where the headquarters is located. Therefore based on the information provided within the question it can be said that in this scenario Fresnas Corp. keeps its research team in close proximity. Since they are moving every business operation closer to the headquarters thus keeping them close by.

3 0

2 years ago

If the price of a good increases by 5% and the quantity demanded decreases by 5%, then at that price, the good is _____.

anastassius [24]

Answer: unitary price elastic

Explanation:

A good is unitary price elastic if a change in price leads to the same proportional change in quantity demanded.

The coefficient of a good with unitary elasticity is 1 .

Coefficient of elasticity = percentage change in quantity demanded / percentage change in price

= 5% / 5% = 1

I hope my answer helps you

7 0

2 years ago