1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
A ____ is drawn on a financial institution and is payable upon demand?
Molodets [167]

Answer: check

Explanation:

A <em>check</em> is drawn on a financial institution and is payable upon demand.

7 0
3 years ago
Read 2 more answers
Suppose that preferences over private consumption C and public goods G are such that these two goods are perfect substitutes, th
Temka [501]

Answer:

Please see explanation below.

Explanation:

Public goods are goods consumed collectively, they are provided for all members of a community,

no one can be excluded from their consumption. The consumption by one person does not decrease the consumption possibilities for others. Public goods are available for everybody without paying, and these goods cannot be rationed: they are either provided for the whole community, or for no one. Examples of public goods include the public lighting system, public roads, radio broadcasts, national defence, lighthouses, town pavements, etc.

Private goods, on the other hand, are goods consumed individually, and if a unit has been consumed by

someone, then no one else can also consume the same unit. Private goods are scarcely available, and consuming a unit will decrease the amount available for further consumption. Therefore consumers compete for private goods, i.e. private goods are rival in consumption. Consumers can consume them if they pay the price, non-payers are excluded from consumption.

In the first scenario, given that both the private good and public good are perfect substitutes, the optimum quantity produced by the government is at the point where marginal social cost is equal to the marginal social benefit. This optimum output is lower than that of the private firm because the price of public good is higher than price of private good (since marginal social cost > marginal private cost).

If b increases, that means consumers are willing to give up more units of public goods for one unit of the private good. Therefore, the quantity produced by the government will reduce.

For the second part of the question: C = aG, where a > 0.

This implies that equal or more units of the private good is consumed with a particular units of public good. The optimum output still remain at the point where marginal social cost is equal to marginal social benefit but this output level is lower than if the two goods were to be perfect substitutes.

7 0
3 years ago
Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international
alexdok [17]

Answer: D) cyclical

Explanation:

Cyclical Demand is difficult to predict because it goes according to the business cycle and hence is affected on a Macro Economic scale by events at a National or International level.

This means that something could be in demand today but the demand could fall or rise sharply based on the stage of the business cycle the economy is in.

8 0
3 years ago
Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which in
otez555 [7]

Answer:

                                  Trial Balance

Items                                     Group             Debit ($)    Credit ($)

Cash                                      Asset               37641

Office Supplies                     Asset               890

Prepaid Insurance                Asset               4600  

Office Equipment                 Asset               12900

Accounts Payable                Liability                                12900

Capital                                   Equity                                  18000

Withdrawals                          Equity              3329  

Engineering Fees earned    Revenue                              36000

Rent Expense                        Expense         <u>7540</u>           <u>            </u>

Total                                                               <u>$66900</u>      <u>$66900</u>

6 0
3 years ago
On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash.
Andrej [43]

Date       -     Account Title         -        Debit        -     Credit

Feb 13

                     Cash                        -      $10,975      -

                     Sales                       -                          -    $10,000

                     Sales Tax Payable -                          -     $975

What is a Drop-down menu?

A drop-down list (abbreviated drop-down, or DDL; also known as a drop-down menu, drop menu, pull-down list, picklist) is a graphical control element, similar to a list box, that allows the user to choose one value from a list.

When a drop-down list is inactive, it displays a single value. When activated, it displays (drops down) a list of values, from which the user may select one.

When the user selects a new value, the control reverts to its inactive state, displaying the selected value. It is often used in the design of graphical user interfaces, including web design.

To learn more about Drop-down menu: brainly.com/question/17116743

#SPJ4

                     

8 0
2 years ago
Other questions:
  • The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $470,000. Included in that coun
    12·1 answer
  • Intellectual property assets are
    10·2 answers
  • The entry of women into the workforce since the 1960s resulted in: A.A shift outward in the production possibilities curve of th
    7·1 answer
  • After closing the only owner's equity account that remains open is the __________ account.
    11·1 answer
  • Active/passive she is watering the plants​
    15·1 answer
  • Second-degree price discrimination occurs when: a business asks a series of personal questions about what the purchase is going
    5·2 answers
  • United States exports soybean oil to China. However, to protect the Chinese soybean oil market, Chinese government has high tari
    13·1 answer
  • Sheridan Company used high-low data from June and July to determine its variable cost of $12 per unit. Additional information fo
    7·1 answer
  • An agreement whereby an investment banker tries to sell securities of an issuing corporation, but assumes no risk if the flotati
    12·1 answer
  • How do those who study workplace ergonomics help decrease workplace injury?.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!