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
Anni [7]
3 years ago
11

You are the manager of a pizzeria that produces at a marginal cost of $6 per pizza. The pizzeria is a local monopoly near campus

(there are no other restaurants or food stores within 500 miles). During the day, only students eat at your restaurant. In the evening, while students are studying, 3 faculty members eat there. If students have an elasticity of demand for pizzas of -4 and the faculty has an elasticity of demand of -2, what should your pricing policy be to maximize profits?
Business
1 answer:
Sergeeva-Olga [200]3 years ago
4 0

Answer:

since the price elasticity of demand for students is -4, the the price charged to them should be:

price = [-4 / (-4 + 1)] x $6 = (-4 / -3) x $6 = $8

since the price elasticity of demand for faculty is -2, the the price charged to them should be:

price = [-2 / (-2 + 1)] x $6 = (-2 / -1) x $6 = $12

You might be interested in
Two types of costs that each combine fixed cost and variable cost behaviors are: a. capacity and incremental costs. b. semi-fixe
tensa zangetsu [6.8K]

Answer: Option B

Explanation: Semi variable cost or semi fixed cost are the expenses which are composed of both fixed and variable cost. In such type of costs, the nature of the cost remains fixed till a certain level of production or consumption  and becomes variable when the production level exceeds that stage.

For example :- A state charge its residents a fixed amount of electricity bill till 300 units of consumption and after 300 units the residents must pay $1 for every additional unit consumed.

7 0
3 years ago
What is the difference between statistics and business statistics?​
Alik [6]

Answer:

Statistics is extended part of mathematics were you deal about only formulas numbers and business statistics deals about your knowledge about financial business marketing.

8 0
3 years ago
Read 2 more answers
Which of the following is a non-depository intermediary?
Rina8888 [55]

Answer:

d

Explanation:

i did it

8 0
3 years ago
According to the text, why is trade school more
jek_recluse [69]

<u>Explanation</u>:

A trade school is becoming popular this because it serves as a home to acquire technical education.

Thus anyone who wants to learn a skill having no prior experience is a best fit for trade school. A major benefit of the trade school is that it provides practical lessons to students, often times they are grouped together in peers for projects which encourages group learning.

5 0
3 years ago
Read 2 more answers
A coal mine cost $ 1 comma 001 comma 000and is estimated to hold 57 comma 000tons of coal. There is no residual value. During th
lorasvet [3.4K]

Answer:

Depletion expenses for the first year is $210736.840

Explanation:

Depletion expenses= (Cost of coal mine - residual value) / Total tons of coal * tons extracted

=(1,001,000 - $0) / 57,000 tons * 12,000 tons

=$210736.8421

=$210736.840

6 0
3 years ago
Other questions:
  • A supermarket expects to sell 1000 boxes of sugar in a year. Each box costs $2, and there is a fixed delivery charge of $20 per
    12·1 answer
  • Using the plant Oenothera lamarckiana, or Evening Primrose, Hugo de Vries discovered stable new variants in multiple generations
    14·1 answer
  • When a corporate name such as Sony is combined with a product brand name such as Walkman, the brand category is referred to as:
    6·1 answer
  • Is marketing an art form in the digital age? Why or why not?
    13·1 answer
  • Partially correct answer iconYour answer is partially correct. This information relates to Windsor Co.
    13·1 answer
  • Who among the following is associated with contributions to quality control in operations management? Henry Ford Charles Babbage
    15·1 answer
  • In the budget constraint framework, when the price of a good rises and demand for the other good decreases, what can you say abo
    14·1 answer
  • If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%
    5·1 answer
  • Marino company is currently selling 10,000 units of its product per month at $10.40 per unit for total monthly sales of $104,000
    10·1 answer
  • "A customer who is long 1 ABC Jan 40 Call wishes to create a "bear call spread." The second option position that the customer mu
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!