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
1. What is the Law of Demand?
Ivanshal [37]

ok ok poko kdwkdwExplanation:

3 0
3 years ago
Friendly’s Quick Loans, Inc., offers you $8.25 today but you must repay $10.45 when you get your paycheck in one week (or else).
Ivahew [28]

Answer:

1,386.67%

Explanation:

Loan Amount = $8.25

Repayment Amount = $10.45

Hence,

Interest for a week = Repayment Amount - Loan Amount

                                = $10.45 - $8.25

                                = $2.2

Interest percentage for a week:

= \frac{Interest\ for\ a\ week}{Loan\ Amount}\times100

= \frac{2.2}{8.25}\times100

= 26.66% (approx)

Number of weeks in a year = 52

Therefore,

Effective annual return:

=  Interest percentage for a week ×  Number of weeks in a year

= 26.66% × 52

= 1,386.67%

Hence,  effective annual return Friendly’s earns on this lending business is 1,386.67% .

APR you are paying 1,386.67%.  

3 0
3 years ago
Amanda is trying to decide whether to get a job after graduation or to spend another year in school to get her master's degree.
Alenkinab [10]

Answer:

36,000

Explanation:

5 0
3 years ago
In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be:
ser-zykov [4K]

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be higher than its target position

Option B

<u>Explanation: </u>

Negotiation is a political dialogue that addresses a problem in a way acceptable to both sides. That group tries in a discussion to convince the other to adhere to its views. Both parties involved tend not to argue, rather seek to find some kind of agreement by mediation.

Talks require others, so that one side is always in the forefront of the talks. Nevertheless, even when the concession is marginal, the other should surrender.

Negotiation parties can differ. These may include negotiations between purchasers or even between the government of several or more nations, employers and future employees.

6 0
3 years ago
Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shar
kifflom [539]

Answer: Option (a) is correct.

Explanation:

Given that,

Dividend in 2016 = $20,000

Preferred Shares = 400

Par Value of Preferred Stock = 400 × 10 = $4000

Rate of Dividend of Preferred Stock = 5%

(a) Dividend to preferred Shareholders:

= Par Value of Preferred Stock × Rate of Dividend

= $4000  × 5%

= $200

(b) Dividend to Common Shareholders:

= Total Dividend - Dividend to Preferred Shareholders

= $20,000  - $200

= $19,800

6 0
3 years ago
Other questions:
  • An appropriate choice of outdoor play equipment for a toddler play yard would be
    5·1 answer
  • A married customer who has an individual account dies. The broker who handles the account learns that one of the major holdings
    15·1 answer
  • What is a federal and state fox on specific goods like gasoline tires airfare and cigarettes
    9·1 answer
  • Which of the following are requirements for product manufacturing?
    6·1 answer
  • An employee of JHT Holdings, Inc., a private trucking company, was responsible for resolving roadway accident claims under $25,0
    14·1 answer
  • Revenue is traditionally recognized in the accounting records when
    7·1 answer
  • Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 9%. The effi
    10·1 answer
  • A retired customer has an existing stock portfolio held in a cash account. He has heard that "leveraging" his portfolio can incr
    10·1 answer
  • Xcel when intentional concealment is involved, what course of action is the injured party entitled to?
    8·1 answer
  • The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save mo
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!