Answer:
A. 15 units
B. $130
Explanation:
In order to solve this, we need to use the profit maximization condition for monopoly.
MR = MC will give us the optimal quantity and price for the monopolist.
The consumer's demand for the product is:
Qd = 80 - 0.5P
Therefore, we have:
P = (80 / 0.5) - (Qd / 0.5)
P = 160 - 2Qd
Recall that, Total Revenue:
TR = P * Q
So, in this case TR = 160Q - 2Q^2
MR = d(TR) / dQ = 160 - 4Q
Now, MR = MC
160 - 4Q = 100
4Q = 160 - 100
4Q = 60
Q = 60 / 4
Q = 15 units.
Now, P =160 - 2Q
P = 160 - 2(15)
P = 160 - 30 = 130
The optimal number of units to be placed in a package will therefore be 15 units while the firm should charge $130 for this package.
A budget is a plan you make to decide how you spend your money.
To make a budget you must decide how much of your money you want to spend and how much of it you want to set aside. To balance a budget, keep track of all your expenses, payments, and income.
Answer:
introduction of modern machines for harvesting
Answer: Andy's demand for beer to increase
Explanation:
Andy's views beer and pizza as complement to each other. Hence when the price of pizza decreases Andy's demand for beer would increase as he would order more beer than pizza so as to complement both offers.
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