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sergeinik [125]
3 years ago
15

You can now sell 40 cars per month at $20,000 per car, and demand is increasing at a rate of 3 cars per month each month. What i

s the fastest you could drop your price before your monthly revenue starts to drop
Business
2 answers:
MArishka [77]3 years ago
3 0

Answer:

More than $1500 price per car per month has to be dropped.

Explanation:

Given:

price per car = $20,000

car sale per month = 40

rate of increase in demand = 3

Solution:

Revenue R = Price × Quantity = P * Q

From the above given data

P = 20,000

Q = 40

R = P*Q

dQ/dt = 3

We have to find the rate at which the price is to be dropped before monthly revenue starts to drop.

R = P*Q

dR/dt = (dP/dt)Q + P(dQ/dt)  

          = (dP/dt) 40 + 20,000*3 < 0

          = (dP/dt) 40 < 60,000

         = dP/dt < 60000/40

         = dP/dt < 1,500

Hence the price has to be dropped more than $1,500 before monthly revenue starts to drop.

Goryan [66]3 years ago
3 0

Answer:

For the monthly revenue starts to drop, the price of the car has to drop more than $1500

Explanation:

Given that:

Price of a car = $20,000

quantity = 40

demand rate = 3

the fastest you could drop your price before your monthly revenue starts to drop can be calculated by using the formula

R = P × Q

i.e themontly  revenue function R is the product of the price per unit P  times the number of units sold Q

Differentiating with respect to time; we have :

\dfrac{dR}{dt}=(\dfrac{dP}{dt} )Q+P(\dfrac{dQ}{dt})

(\dfrac{dP}{dt} )40+20000 \times 3

(\dfrac{dP}{dt} )40+60000

(\dfrac{dP}{dt} )40

(\dfrac{dP}{dt} )

(\dfrac{dP}{dt} )

Therefore; For the monthly revenue starts to drop, the price of the car has to drop more than $1500

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Answer:

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Explanation:

a. Lock heed Martin as a Government Contractor

A government contractor is a company that does contracts predominantly supplied by the government. The contracts are financed by the government mostly from tax collection. These contracts vary in type whether it is defense or any other type of contract for that matter.

In the case of Lockheed Martin, this is a defense contractor that has been listed as one of the biggest government contractors over the years. It also has worldwide interest in aerospace and advanced technologies. This company was formed as a result of a merger between Lockheed Corporation and Martin Marietta on the March of 1995.

b. Amtrak as a government corporation

From these information it can be concluded that a government contractor is in most cases is a private company that bids for tenders from the government. The bidding process is usually open to all qualified companies. After thorough assessment of these bids, the government awards the contract to the most qualified company. In the case of Lockheed Martin, the government usually requires a specialized skills in aerospace, and defense.

A government corporation on the other hand is a huge company that is there majorly for the interest of the public. It is usually partly owned by the government therefor receives a combination of state and federal subsidies. It is also usually for non-profit purposes since it is formed for the benefit of the public. The National Railroad Passenger Corporation which does it's business with the name Amtrak is a railway corporation formed in 1971 and is partly owned by the government. It provides railway services of transporting people and goods connecting many states. It therefor serves as a government corporation.

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Shawna wins the lottery and her income increases by 60 percent. she used to buy 10 pints of cottage cheese per month and now she
Dmitriy789 [7]

Answer: Her income elasticity of demand for cottage cheese is <em><u>0.3333</u></em> making it a <em><u>normal and necessary</u></em> good.

The income elasticity  of demand is given by :

\mathbf{YED = \frac{percentage change in demand}{percentage change in income}}

The percentage change in income is given as 60%. We calculate the percentage change in quantity demanded as follows:

\mathbf{percentage change in quantity demanded = \frac{Q_{1}-Q_{0}}{Q_{0}}}

\mathbf{percentage change in quantity demanded = \frac{12-10}{10}}

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Since the income elasticity is positive, and since Shawna buys more cottage cheese after an increase in income, we can classify this good as a normal good.

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Answer:

In the following situation:

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The only way Reethika can get the answer without disturbing either meeting is:

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