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Tju [1.3M]
3 years ago
15

A monopolist has four distinct groups of customers. Group A has an elasticity of demand of​ 0.2, B has an elasticity of demand o

f​ 0.8, C has an elasticity of demand of​ 1.0, and D has an elasticity of demand of 2.0. The group paying the highest price for the product will be
Business
1 answer:
Bumek [7]3 years ago
5 0

Answer:  Group A

Explanation:

Price Elasticity of demand refers to the sensitivity of quantity demanded given a change in price. In other words, how much will quantity demanded change if price changes. Higher elastcities mean that when prices change, their quantity demanded changes more. For instance, an elasticity of demand of 2 means that when prices rise by 2%, demand will decrease by 4%.

The group that will be paying the most therefore will have to be the group that is least sensitive to paying that high price. That would be Group A. As they are not very sensitive to price changes with an elasticity of 0.2, the Monopoly can increase their price to a higher point than others knowing that they won't demand less goods.

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7 0
3 years ago
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,750,000 (250,00
Zepler [3.9K]

Answer:

Allocated overhead= $1,430,600

Explanation:

Giving the following information:

The company's executives estimated that direct labor would be $3,750,000 (250,000 hours at $15/hour) and that factory overhead would be $1,550,000 for the current period.

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Using direct labor hours as a base.

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Predetermined overhead rate= 1555000/250000= $6.22 per hour

Allocated overhead= Predetermined overhead rate*actual hours= 6.22* 230000= $1,430,600

7 0
3 years ago
If total spending rises from one year to the next, then Select one: a. either the economy must be producing a larger output of g
DIA [1.3K]

Answer:

a. either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both

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8 0
3 years ago
?fournotts printing inc. manufactures and sells photocopiers, printers, and scanners to various corporate offices. this is an ex
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3 years ago
Your cousin is currently 14 years old. She will be going to college in 4 years. Your aunt and uncle would like to have $ 115 com
kumpel [21]

Answer:

they need to put into the account $99444.97

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given data

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saving account  = $115000

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solution

we get here present value that is express as

present value = \frac{future\ value }{(1+ rate)^t}     ..........................1

put here value and we get

present value = \frac{115000}{(1+ 0.037)^{4}}      

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present value = $99444.97

so they need to put into the account $99444.97

6 0
3 years ago
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