Answer:
$86.67 is the profit maximizing price for the monopolist
Explanation:
In order to find the profit maximizing price for the monopolist using its price elasticity and marginal cost we have to use the formula
Price= Marginal cost* (elasticity/elasticity+1)
Marginal cost = $65.0065
Elasticity = -4
Price = 65.0065 *(-4/-4+1) = 65.0065*(-4/-3)= 86.67
Answer:
26250
Explanation:
I subtracted the expenses from the revenue to get this.
I hope this is correct, and as always, I am joyous to assist anyone at any time.
Answer;
Raskels = 0.8 Substitute
Kipples = -1 Complement
Explanation:
Cross-price
elasticity of demand , Complement
Raskels (-4%)/(-5%) = 0.8 Substitute
Kipples (5%)/(-5%) = -1 Complement
Recommended
Raskels No
Ripples Yes
Cross price elasticity = Percentage change in quantity demanded of a good/Percentage change in price of another good.
If it is positive, then it means that the good is a substitute and should not be advertised together.
And If it is complement, then the good is a complement and should be advertised together.
Answer:
1) Last years' margin = Net operating income÷ Sales
= 240,000÷1,200,000
= 0.2= 20%
2) Last years' turnover = Sales ÷ Average operating assets
= 1,200,000 ÷ 600,000
= 2
3) Last years' return on investment = Margin ratio × turnover ratio
= 20% × 2 = 40%
4) Margin for this years' investment = Net operating income ÷ Sales
= 36,000 ÷ 240,000
= 0.15 = 15%
