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
mixer [17]
3 years ago
15

Suppose a​ monopoly's price is ​$90.00 and its marginal cost of production is ​$18.00. What is the​ firm's markup? What is the f

irm's elasticity of demand?
Business
1 answer:
Julli [10]3 years ago
4 0

Answer and Explanation:

The computation is shown below;

Given that

Price = P = $90

And, the Marginal cost = MC = $18

a.

Now the markup would be

= (P - MC) ÷ P

= ($90 - $18) ÷ $90

= $72 ÷ $90

= 0.80

= 80%

Now the monopoly markup is

b.

As we know that

Monopoly, markup = 1 ÷ elasticity of demand(e)

e = 1 ÷ markup

= 1 ÷ 0.8

= 1.25

The absolute value of e would always be negative so e = -1.25

Therefore

The​ firm s price elasticity of demand is -1.25

You might be interested in
Using the FAFSA form, you can apply for
VARVARA [1.3K]
<span>The FAFSA form is used in order to apply for Federal Student Aid. This is due to the fact that the form assesses the financial situation of the student and their family, and is able to provide funding for the student to pursue their higher level education.</span>
8 0
3 years ago
A perfectly competitive market is initially in long-run competitive equilibrium. each firm in the market is earning zero economi
Simora [160]
The answer to the question you are asking is e
4 0
3 years ago
Oldhust Corp., an electronics company in the country of Bigmount, bought Specden Corp., an electronics company in the country of
uysha [10]

Answer: Direct foreign investment

Explanation:

The direct foreign investment is one of the investment process that helps in controlling the business ownership and in this the investment is basically create by one organization in some other country or location.

The economic development and the easy international trading are the main benefit of the direct foreign investment.

 According to the given scenario, the Oldhust corporation is one of the electronic company that basically bought the other electronic firm in the other country and this example is refers as the direct foreign investment.

 Therefore, Direct foreign investment is the correct answer.

8 0
3 years ago
Which of the following is an example of an agency relationship?
zysi [14]

The answer is : d: A client that ends a transaction with one business to start another

6 0
3 years ago
Read 2 more answers
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies fo
Andre45 [30]

1. The missing amounts should be determined in the following manner:

On Company A. Materials inventory December 1 Materials inventory December 31-+Materi also purchased -Cost of direct materials

Off Company Total manufacturing costs incurred in December -Direct labor Cost of direct materials used in production -Factory

2. On Company's statement of goods manufactured should be prepared as follows:

On Company Statement of Goods Manufactured For the Month of December 2016 Materials inventory December 1 Add: Purchases Total

3. On Company's income statement should be prepared as follows:

On Company Income Statement For the Month of December 2016 Sales 1,127,000 827.400 299,600 Less: Operating expenses 117,600.

Learn more about income statements at

brainly.com/question/24498019

#SPJ4

5 0
2 years ago
Other questions:
  • In order for the United States to have a treaty with a foreign country the
    9·2 answers
  • In examining its monthly bank statement, a company discovers that that its account was credited $30 for interest earned. The ent
    6·1 answer
  • Information System do not evolve over time true or false
    11·1 answer
  • Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct la
    12·1 answer
  • The ¬¬_______ is an example of a regional trading bloc.
    9·2 answers
  • Samuel needs to import information from Excel to an Access table, but he wants to ensure that if the source table is
    15·1 answer
  • Calcular el valor futuro de $2,500 que se ahorran al final de cada mes por un periodo de 4 años con una tasa de interés del 9% a
    5·1 answer
  • Imagine that David is preparing his will and is trying to decide how to divide his assets between his two grown children. His da
    12·1 answer
  • Boi, why am i alive.-
    6·1 answer
  • Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the followin
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!