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
zlopas [31]
3 years ago
11

Suppose that the inverse demand for San Francisco cable car rides is pequals20minusStartFraction Upper Q Over 1000 EndFraction ​

, where p is the price per ride and Q is the number of rides per day. Suppose the objective of San​ Francisco's Municipal Authority​ (the cable car​ operator) is to maximize its revenues LOADING.... What is the​ revenue-maximizing price? The​ revenue-maximizing price is
Business
1 answer:
MariettaO [177]3 years ago
5 0

Answer: The​ revenue-maximizing price is $10.

Explanation:

Given that,

Inverse demand function: P = 20 - \frac{Q}{1,000}

Where,

P - Price per ride

Q - Number of rides per day

Revenue(R) = P × Q

                   = 20 - \frac{Q}{1,000} × Q

                   = 20Q - \frac{Q^{2} }{1,000}

Differentiating 'R' with respect to Q for calculating Marginal revenue(MR):

MR = 20 - \frac{Q}{500}

Here, MC = 0

MR = MC

20 - \frac{Q}{500} = 0

Therefore, Q = 10,000

P = 20 - \frac{Q}{1,000}

  = 20 - \frac{10,000}{1,000}

  = $10

Hence, the​ revenue-maximizing price is $10.

You might be interested in
Mc qu. 49 parsons corporation plans to ... parsons corporation plans to sell 18,000 units during august. if the company has 5,50
yuradex [85]
18,500 <span>units must be produced during the month</span>
7 0
4 years ago
Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acqui
Anni [7]

Answer:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

Explanation:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

8 0
4 years ago
3. Explain the success of the training program using Conditioning Theory and Social Cognitive Theory. For each theory: A. How do
qaws [65]

Answer:

you just explain how smart it is.

it can add more tecnoligy

Explanation:

3 0
3 years ago
What is the difference between an<br> architectural drafter and an architectural<br> illustrator
Tomtit [17]

Answer:

architectural drafter draw structural features and details for buildings and other construction projects while an architectural illustrator is an artist who created imagery for the design professional that accurately portray the details of an architectural project.

3 0
3 years ago
In its first month of operations, Giffin Company made three purchases of merchandise in the following sequence: (1) 240 units at
alisha [4.7K]

Answer:

$1,395

Explanation:

Total cost of Inventory purchased

= (No. of units × Per unit price) +  (No. of units × Per unit price) +  (No. of units × Per unit price)

= (240 × 8) +(340 × 10) +(440 × 11)

= 1,920 + 3,400 + 4,840

= $10,160

Number of units purchased = 240 + 340 + 440

                                              = 1,020

Average cost per unit = total cost /No. of units

= 10,160 /1,020

= $ 9.9608 per unit

Cost of ending inventory = 140 × 9.9608

= $1,395

8 0
3 years ago
Other questions:
  • Last week stephanie quit her job as a copywriter at an advertising agency. she has spent the past few days browsing the help wan
    7·1 answer
  • What are some examples of agriculture, food, and natural recourses careers?
    7·1 answer
  • Ryan has been asked to give his supervisor a concise summary of a proposal that he will be delivering to the board of directors
    7·1 answer
  • __________ is the degree to which a supplier relies on a purchaser because of the importance of that purchaser to the supplier a
    8·2 answers
  • Why would the US government sell government securities to private individuals and organizations?
    15·1 answer
  • Gabriella and Juanita form Luster Corporation. Gabriella transfers cash of $50,000 for 50 shares of stock, while Juanita transfe
    11·1 answer
  • What would be the normal balance (debit or credit) of inventories if the 2017 woolworths balance sheet says that the value of in
    6·1 answer
  • Borwan Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,
    15·1 answer
  • Which of these is a reason that citizens should vote?
    6·1 answer
  • A graph titled Change in U S Unemployment and Inflation from 1971 to 2001 has the year on the x-axis and percentage change on th
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!