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
chubhunter [2.5K]
3 years ago
13

An end-of-aisle price promotion changes the price elasticity of a good from −2 to −3. Suppose the normal price is $34, which equ

ates marginal revenue with marginal cost at the initial elasticity of –2. What should the promotional price be when the elasticity changes to –3? (Hint: In other words, what price will equate marginal revenue and marginal cost?)
Business
1 answer:
Vika [28.1K]3 years ago
8 0

Answer:

MC = $17

P = $25.5

Explanation:

We proceed as follows;

Firstly calculate MC when e = -2, where MR = MC

(P-MC) / P = 1 / IeI

Here P = $34 and e = -2

(34 - MC) / 34= 1/ I-2I

(34 - MC) / 34= 1 / 2

78-2MC = 34

2MC = 34

MC = 34/2

MC = 17

Now, as we have MC, we will calculate the new price when e = -3

(P-MC) / P = 1 / IeI

(P - 17) / P = 1 / I-3I

(P - 17) / P = 1 / 3

3P -51 = P

2P = 51

P = 51/2

P = 25.5

You might be interested in
The role of management in the success of a business?
Kaylis [27]

Effective management theories can be the basis of a success in a business. ... It is thus the duty of managers to plan, organize, lead and control the various functional areas with the aim of ensuring that the entire organization moves towards the same organization

Mark me as brainliest

3 0
3 years ago
- A negative monthly balance indicates that:
GrogVix [38]

Answer:

Someone owes you money

Explanation:

negative balance simply means that your card issuer owes you money,

7 0
3 years ago
All of the following are arguments against increased social responsibility except:________.
Sveta_85 [38]
You can’t see any options so no one will know what to answer.
5 0
3 years ago
Read 2 more answers
A(n) __________, used to justify the project is typically prepared in the analysis phase of the secsdlc, must be reviewed and ve
allsm [11]

A CBA , used to justify the project is typically prepared in the analysis phase of the secsdlc, must be reviewed and verified prior to the development of the project plan.

A project plan is a collection of official documents outlining the project's execution and control phases. In addition to addressing scope, cost, and schedule baselines, the plan takes risk management, resource management, and communications into account.

A project plan is a document that outlines each step needed to complete a project from A to B. It is sometimes portrayed as a Gantt chart. It acts as a roadmap by outlining the project phases, important project tasks, their start and end dates, interdependencies, and project milestones.

Learn more about project plan here

brainly.com/question/15410378

#SPJ4

4 0
2 years ago
Caroline's Jewelry and Gifts is located between a hardware store and a sports bar. While her target market is adult women of med
Vikki [24]
The husbands? since the store is near to asport bar and hardware store (which i assume are the places full of men customer), those guys might wanna buy cute jewellery for their cute wives
4 0
3 years ago
Read 2 more answers
Other questions:
  • Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs ar
    12·1 answer
  • Acme company has a mission statement that is open to interpretation. Many stakeholders identify with it. Their mission statement
    10·1 answer
  • The original marketing strategy of McDonald's in BrazilSelect one:a. promoted a beer with lunch.b. completely changed the menu t
    8·1 answer
  • Which one of the following statements is​ FALSE? A. In a processminuscosting ​system, each unit uses approximately the same amou
    11·1 answer
  • According to the law of increasing opportunity cost, as a society produces more and moreof a certain good, further production in
    14·1 answer
  • ​________ is the extent to which a selection tool produces consistent results over time.
    9·1 answer
  • Will today's second generation of immigrants move up the occupational ladder?
    6·1 answer
  • Accumulated Depreciation is:a. contra asset account b. is used to show the amount of cost expiration of intangibles c. is the sa
    6·2 answers
  • Coc.k dsfdfdsfdsfdsfs
    12·2 answers
  • Why does a business cycle diagram serve as a forecasting model​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!