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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

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George and Dan's political consulting firm is losing money, but it is more than covering its variable costs. What is the most ac
aniked [119]

Answer:

- It will go out of business in the long run.

Explanation:

If George and Dan's political consulting firm is losing money, but it is more than covering its variable costs, then the most accurate statement we can make about it is that: It will go out of business in the long run.

In the SHORT RUN, as long as the firm is covering variable costs, it means that the firm is able to generate normal profit or contribution that takes care of part or all of its fixed costs. It will stay in business

<u>In the LONG RUN, the firm will only continue to operate if it can make normal profits</u>

<u>Normal profit occurs when the difference between a company's total revenue and combined explicit and implicit costs are equal to zero.</u>

<u>Since George and Dan's political consulting firm cannot cover fixed costs, it will go out business in the long run.</u>

3 0
2 years ago
According to ethical guidelines, at the end of a study participants must be fully informed as to the purpose of the study and gi
kkurt [141]

Answer:

<em>According to ethical guidelines, at the end of a study participants must be fully informed as to the purpose of the study and given an explanation of any deception used in the study. This process is called </em><em><u>debriefing</u></em><em><u> </u></em>

Explanation:

<em>W</em><em>hat </em><em>is </em><em>debriefing</em><em>?</em><em> </em>

<em>Providing</em><em> </em><em>a </em><em>description</em><em> </em><em>of </em><em>the </em><em>experiment </em><em>and </em><em>it's </em><em>purposes</em><em> </em><em>in </em><em>order </em><em>to </em><em>minimize</em><em> </em><em>the </em><em>negative</em><em> </em><em>effects.</em><em> </em><em>[</em><em>if </em><em>any]</em><em> </em><em>an </em><em>experiment </em><em>may </em><em>have </em><em>on </em><em>its </em><em>subjects</em><em>.</em><em> </em>

8 0
2 years ago
"Problems and Applications Q2
Marysya12 [62]

Answer:

When the Feds sells bond in open market, it INCREASE the money supply.

If the Feds want to decrease the money supply in THE ECONOMY, it can INCREASE the reserve requirements.

When the Feds increases the interest rate it pays on reserve, the money supply will DECREASE.

When Fomc decrease it target for the federal funds rate, the money supply will INCREASE.

When Citibank repays a loan it had previously taken from the Feds, it DECREASES the money supply.

6 0
2 years ago
If a company spends $14.4 million to install refurbished footwear-making equipment with capacity to produce 1 million pairs of a
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The annual depreciation costs at that facility will rise by 10% or $1,440,000.

<h3>Annual depreciation costs</h3>

Life of the equipment = 10 Years

Salvage value = 0

Annual Depreciation= (Cost of equipment - Estimated salvage value) / Estimated useful life

Annual Depreciation= ($14.4 million- 0) / 10

Annual Depreciation= $1,440,000

or

Annual Depreciation= $1,440,000/$14,400,000 ×100

Annual Depreciation= 10%

Inconclusion the annual depreciation costs at that facility will rise by 10% or $1,440,000.

Learn more about annual depreciation cost here:brainly.com/question/15872169

4 0
2 years ago
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Nesterboy [21]

Answer:

a. The Bt toxin could negatively affect the taste of the food that is produced from these crops.

c. The Bt toxin could result in the death of non-pest species of insects. d. The Bt gene could ultimately make the plants pathogenic to humans.

Explanation:

Genetically engineered crops couldn't harm the economy. They are made to benefit economy, as it's shown in the following quote:

"The commercialization of genetically modified (GM) crops has continued to occur at a rapid rate, with important changes in both the overall level of adoption and impact occurring in 2012.

This annual updated analysis shows that there have been very significant net economic benefits at the farm level amounting to $18.8 billion in 2012 and $116.6 billion for the 17-year period (in nominal terms)."

Reference: Brookes, Graham, and Peter Barfoot. “Economic Impact of GM Crops.” Taylor & Francis, 2014,

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