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Natasha2012 [34]

2 years ago

9

g Firm X is a monopolist with marginal cost of $5/unit. When maximizing profit, Firm X charges a price of $24/unit. What elastic

ity of demand is Firm X facing at its current level of output

1 answer:

Yanka [14]2 years ago

7 0

Answer:

Firm X is facing low elasticity of demand at its current level of output.

Explanation:

This is why Firm X is able to set such a high price of $24/unit when its marginal cost is $5/unit. Usually, a monopolist does not want to set prices and outputs in the inelastic range of the demand curve. It is always interested in setting profit-maximizing prices and outputs. Firm X should be wary of setting too high prices because consumers can decide to lower their demand.

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Should shoe companies be able to give away free shoes and equipment to high school athletes?

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A financial services firm routinely processes a large volume of account change requests. a lean six sigma team wants to understa

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2 years ago

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Tanzania [10]

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6 0

3 years ago

You currently drive 250 miles per week in a car that gets 24 miles per gallon of gas. You are considering buying a new fuel-eff

olga_2 [115]

Answer:

It is less expensive to keep your old car.

Explanation:

We have been given that you currently drive 250 miles per week in a car that gets 24 miles per gallon of gas.

1 year equals 52 weeks.

5 years equals 260 weeks.

$\text{Number of miles traveled in 5 years}=260\times 250$

$\text{Number of miles traveled in 5 years}=65,000$

The old car gives a mileage of 24 miles per gallon of gas.

$\text{Gallons of gas used by old car}=\frac{65,000}{24}$

$\text{Gallons of gas used by old car}=2708.33$

$\text{Cost of gas used by old car}=2708.33\times \$3.50$

$\text{Cost of gas used by old car}=\$9479.155$

$\text{Insurance premium for old car for 5 years}=\$400\times 5$

$\text{Insurance premium for old car for 5 years}=\$2,000$

$\text{Amount spent on repairs for old car}=\$1500\times 5$

$\text{Amount spent on repairs for old car}=\$7500$

$\text{Total cost of using old car for 5 years}=\$7500+\$9479.155+\$2,000$

$\text{Total cost of using old car for 5 years}=\$18979.155$

Therefore, the total of using old car for 5 years is $18979.16.

We are told that new car gives a mileage of 53 miles per gallon.

$\text{Gallons of gas used by new car}=\frac{65,000}{53}$

$\text{Gallons of gas used by new car}=1226.415$

$\text{Cost of gas used by new car}=\$3.50\times 1226.415$

$\text{Cost of gas used by new car}=\$4292.45$

$\text{Insurance premium for new car for 5 years}=\$800\times 5$

$\text{Insurance premium for new car for 5 years}=\$4,000$

$\text{Total cost of using new car for 5 years}=\$14,000+\$4292.45+\$4000$

$\text{Total cost of using new car for 5 years}=\$22292.45$

Since the cost of using new car for 5 years is greater than cost of using old car for 5 years, therefore, it is less expensive to keep your old car.

7 0

3 years ago

Read 2 more answers

Carl puts $10, 000 into a bank account that pays an annual effective interest rate of 4% for ten years. If a withdrawal is made

svlad2 [7]

Answer:

K=$980

Explanation:

10,000*(1.04)^10=1.05K(1.04^6+1.04^5)+K(1.04^4+1.04^3)+10,000

K=14,802-10,000/1.05(1.04^6+1.04^5)+1.04^4+1.04^3

K=4,802.4/4.91=$980

4 0

3 years ago