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
iren2701 [21]
2 years ago
9

The quantity demanded x for a product is inversely proportional to the cube of the price p for p > 1. When the price is $10 p

er unit, the quantity demanded is 64 units. The initial cost is $140 and the cost per unit is $4. What price will yield a maximum profit? (Round your answer to two decimal places.)
$______
Business
1 answer:
Delvig [45]2 years ago
4 0

Answer:

$6.00

Explanation:

Given data

quantity demanded ( x )  ∝ 1 / p^3       for p > 1

when p = $10/unit , x = 64

initial cost = $140, cost per unit = $4

<u>Determine the price that will yield a maximum profit </u>

x = k/p^3 ----- ( 1 ).  when x = 64 , p = $10 , k = constant

64 = k/10^3

k = 64 * ( 10^3 )

  = 64000

back to equation 1

x = 64000 / p^3

∴ p = 40 / ∛x

next calculate the value of revenue generated

Revenue(Rx) = P(price ) * x ( quantity )

               = 40 / ∛x * x   =  40 x^2/3

next calculate Total cost of product

C(x) = 140 + 4x

Maximum Profit  generated = R(x) - C(x) = 0

                                              = 40x^2/3 - 140 + 4x  = 0

                                              =  40(2/3) x^(2/3 -1) - 0 - 4 = 0

                                            ∴ ∛x = 20/3    ∴     x = (20/3 ) ^3 = 296

profit is maximum at x(quantity demanded ) = 296 units

hence the price that will yield a maximum profit

P = 40 / ∛x

  = ( 40 / (20/3) )  = $6

                                             

You might be interested in
Which government agency works to prevent unfair competition and deceptive business practices?
mr Goodwill [35]

Answer:

D

Explanation:

6 0
3 years ago
Read 2 more answers
Mateo exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $200,000 for a rental
FromTheMoon [43]

Answer:

a.$0

Explanation:

Adjusted basis is the cost of a property and other related costs incurred in acquiring, maintaining, or upgrading the property.

Fair value represent the worth of a property. It is the amount that one should expect to fetch from the market if they were to sell the property.

The fair value or the worth for Mateo's rental house is $200,000. He obtains another rental house with a fair value of $180,000 and cash $20,000.

He exchanged property worth  $200,000 for $200,000

7 0
2 years ago
Phil agrees to work for vacation resorts, inc., as a chef. in determining whether a contract has been formed, an element of prim
makvit [3.9K]
The parties' intent.
An agreement is a legitimately authoritative understanding. Once an offer has been acknowledged, there is an understanding, yet not really an agreement. The component that changes over any agreement into a genuine contract is "expectation to make lawful relations". The courts look for confirm that the gatherings to the understanding expected that it ought to be administered by, and subject to, the law of agreement; with the goal that the agreement offers ascend to lawful outcomes. Each gathering consequently receives a legitimate commitment, and each may look for a cure in case of rupture.
3 0
3 years ago
For the purpose of allocating the transaction price to multiple performance obligations, if a stand-alone selling price cannot b
Svetllana [295]

For the purpose of allocating the transaction price to multiple performance obligations, if a stand-alone selling price cannot be directly observed, the seller should  estimate the stand alone price by seeing all the things that maximizes the use of observable inputs.

Seller must apply different estimation methods which are consistent to  similar circumstances of the not availability of stand alone price.

Different  methods which can be used for estimating the stand-alone selling price of a good or service include the following:

Expected cost plus margin

Adjusted market assessment

Residual value.

To know more about transaction price here:

brainly.com/question/15586980

#SPJ4

4 0
2 years ago
"For a firm to maximize total profits through price discrimination, it should
Alex777 [14]

Answer: d. ​charge a high price to high-value consumers and a low price to low-value consumers

Explanation: Price discrimination as a selling strategy involves charging customers different prices for the same product or service. It is often based on what the seller thinks they can get the customer to agree to and that customers can be asked to pay more or less based on certain demographics or on how they value the product or service on sale. Therefore, for a firm to maximize total profits through price discrimination, it should charge a high price to high-value consumers and a low price to low-value consumers.

6 0
3 years ago
Other questions:
  • Niles Co. has the following data related to an item of inventory: Inventory, March 1 110 units @ $1.10 Purchase, March 7 210 uni
    8·1 answer
  • Rising unemployment levels tend to stifle demand for goods and services, which can have the effect of forcing prices downward is
    13·1 answer
  • Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comme
    7·1 answer
  • If a loan is risky and extends for more than a year what will a lender ask for
    8·1 answer
  • Economic leverage occurs when a business uses it economic power to:
    11·1 answer
  • During modeling of the CRISP-DM method, we would ______. a. ​clarify business goals for the data mining project b. ​assess if th
    6·1 answer
  • If $13,000 is borrowed at 5.8% simple interest for 10 years, how much interest will be paid for the loan
    6·1 answer
  • Since there is no presidential election this year what happens?<br> Best answer Brainliest
    8·2 answers
  • In an automobile manufacturing plant, the assembly-line workers are classified as.
    9·1 answer
  • after a bank reconciliation is completed, journal entries are prepared for items in the balance per company's records as well as
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!