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Alex
3 years ago
12

A movie theater estimates that for each $0.50 increase in ticket price, the number of tickets sold decreases by 60. The current

ticket price of $16.50 yields 1800 tickets sold. Set up an equation to represent the daily revenue. What price should the theatre charge for tickets in order to maximize daily revenue
Business
1 answer:
kotegsom [21]3 years ago
5 0

Answer:

The daily revenue equation is  29700 - 90x - 30x²

The price that should be charged to maximize daily revenue is $15.75

Explanation:

Revenue is a function of price multiplied by the quantity. Thus, the equation for revenue can be written as,

Let x be the number of times there is an increase in price of $0.5.

The price function is = 16.5 + 0.5x

The demand function is = 1800 - 60x

Revenue = (16.5 + 0.5x) * (1800 - 60x)

Revenue = 29700 - 990x + 900x - 30x²

Revenue = 29700 - 90x - 30x²

To calculate the price that will yield maximum revenue, we need to take the derivative of this equation of revenue.

d/dx = 0 - 1 * 90x° - 2 * 30x

0 = -90 -60x

90 = -60x

90 / -60 = x

x = -1.5

The price needed to maximize revenue is,

p = 16.5 + 0.5 * (-1.5)

p = 16.5 - 0.75

p = 15.75

The demand at this price is = 1800 - 60 * (-1.5)

Demand = 1800 + 90 = 1890

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As the workforce becomes more diverse, why does performance appraisal become a more difficult process?
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Answer:

Performance appraisal in a company with diverse workforce becomes difficult because of some cultural biases that may exist between the manager, who is doing the appraisal, and the diverse workforce.  This problem becomes more acute if the manager is culturally biased and discriminatory by practise.

Explanation:

Company A can have a diverse workforce if it is made up of employees from culturally different places working together in the same workplace.  Bias often arises due to human cultural nuisances.  This becomes more obvious where managers are from some particular cultures while the employees are from mixed cultures.  In such situations, the managers need to be retrained to enable them embrace cultural diversity in the workplace and in performance evaluation.

6 0
3 years ago
Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she wi
DiKsa [7]

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

  • accounting profit = $12,000
  • opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

7 0
2 years ago
A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to
Aleonysh [2.5K]

The statement,"A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts" is True .

<u>Explanation: </u>

The drawback to vertical integration is that a producer can have economies of scale, and incorporate demand for components from certain companies and therefore improve quality and cost in contrast with the production of their own products by each company.

Market power is a framework in which an organization manages the microeconomics and administration supply chain. In general, a supply chain leader creates another goods or services and the products satisfy a certain criteria.

A retailer such as Wal-Mart, which has its own products, is an example of vertical integration. This owns the inventory, manages the distribution and is the seller. Because it splits the guy in between, the company will deliver a much lower price, such as the brand name drug.

8 0
3 years ago
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn i
OlgaM077 [116]

Answer:

$60

Explanation:

The computation of price is shown below:-

Producer Surplus = Price paid by consumers - Production cost

$100 = Price - ($15 + $25 + $40)

$100 = Price - $80

Price for all = $100 + $80

= $180

Price Per consumer = Price for all ÷ First three lawns

= $180 ÷ 3

= $60

Therefore, for computing the price per consumer we simply divide first three lawn by price for all.

6 0
3 years ago
A company reports the amounts below in its financial statements. Net cash flow from operating activities $37,570 Total net cash
balandron [24]

Answer:

Ratio will be 0.92

So option (A) will be the correct option

Explanation:

We have given net cash flow from operating activities = $37570

So net operating cash flow = $37570

Current liabilities at the bugging of the year = $38400

Current liabilities at the end of the year = $43200

So average current liabilities =\frac{38400+43200}{2}=$40800

We have to find the ratio of operating cash flow to current liabilities

So ratio will be =\frac{37570}{40800}=0.92

So option (A) will be the correct option

3 0
3 years ago
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