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Yuri [45]
3 years ago
5

B. the product of abcgolf uses several exotic raw materials. the government places a tax on those raw materials, and the mc and

atc both increase. how will the profit maximizing price and quantity change as a result
Business
1 answer:
vaieri [72.5K]3 years ago
8 0
When marginal cost and average total cost for a product is increased, the amount of price needed by companies to accomplish target profit will also be increased (ncrease in profit maximizing price).
On the other hand, the quantity change will showd lower amount of material due to the expenses in acquiring the material at new cost.
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Suppose that in an? economy, investment is? $400 billion, saving is? $400 billion, tax revenues are? $500 billion, exports are?
ludmilkaskok [199]

By definition, government expenditure refers to the money used in the acquisition of goods and services for current use. In this case, the government expenditure is simply equivalent to investment.

<span>Government expenditure =  </span>$400 billion

From economics: I=S+T–G+M–X

Where

I = Investment

S = Savings

T= Tax revenues

G =Government budget

M = Import

X = Export

Rearraging to get G:

G = S – I + T + M – X

G = $400 billion - $400 billion + $500 billion + $200 billion - $300 billion

<span>G = Government budget =  $400 billion</span>

4 0
3 years ago
EBike, an electronic bicycle manufacturer, has identified two customer segments, one is willing to pay a higher price for a cust
kramer

Solution:

1)

Profit function of customised bicycle customers, P1 = d1*(p1-c)

= (11000-25p1)*(p1-160)

= 11000p1-1760000-25p1^2+4000p1

= -25p1^2+15000p1-1760000

In order to the profit maximizing price, equate the first order derivative of profit function to 0

dP1/dp1 = d(-25p1^2+15000p1-1760000)/dp1 = 0

=> -50p1+15000 = 0

=> p1 = 300

Profit function of price sensitive customers, P2 = d2*(p2-c)

= (11000-45p2)*(p2-160)

= 11000p2-1760000-45p2^2+7200p2

= -45p2^2+18200p2-1760000

In order to the profit maximizing price, equate the first order derivative of profit function to 0

dP2/dp2 = d(-45p2^2+18200p2-1760000)/dp2 = 0

=> -90p2+18200 = 0

=> p2 = 202.22

Price to be charged for customised segment = $ 300

Price to be charged for price sensitive segment = $ 202.22

------------------------------------------------------------

2)

Considering single price, p

Total profit from both segments, P = (d1+d2)*(p-160)

= (11000-25p+11000-45p)*(p-160)

= (22000-70p)*(p-160)

= 22000p-3520000-70p^2+11200p

= -70p^2+33200p-3520000

In order to the profit maximizing price, equate the first order derivative of profit function to 0

dP/dp = d(-70p^2+33200p-3520000)/dp = 0

=> -140p+33200 = 0

=> p2 = 237.14

3)

This is solved by Solver as follows:

[ Find the attachments ]

8 0
2 years ago
Someone offers to buy your old Ford F-150 truck for 4 equal annual payments, beginning 2 years from today. If you think that the
jarptica [38.1K]

Answer:

$3,123.16

Explanation:

The computation of the minimum annual payment is as follows:

Given that

RATE = 10%

NPER = 10%

PV = $9,000 × (1 + 0.1) = $9,900

FV = $0

The formula is shown below:

= PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the monthly payment is $3,123.16

3 0
3 years ago
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produc
TEA [102]

Answer: Holmes should process it further to make a profit of $306,496

Explanation:

If Holmes sells now, the selling price would be:

= Amount sold for / No. of units

= 81,500 / 2,425

= $33.61

If the company processes further and sells at $415, they will get a profit per unit of:

= 415 - 255

= $160 per unit

Incremental revenue is:

= (160 - 33.61) * 2,425 units

= $306,495.75

Holmes should process it further.

4 0
3 years ago
Can someone please help me with this question ?
Elis [28]

1) CORRECT

2) If it was an administrative assistant then this would be correct

3) A bachelor's degree

4 0
3 years ago
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