Answer:
<em><u>P (x) = 80x - 2x^2 - 3</u></em>
Explanation:
The Profit function is the revenue minus the cost.
Revenue = Price x Quantity = X.px = x(88-2x) = 88x - 2x^2
Therefore the profit function P (x):
P (x) = 88x - 2x^2 - (8x+3)
<em><u>P (x) = 80x - 2x^2 - 3</u></em>
<em><u /></em>
To maximise profit we use the 1st order condition: dP(x)/dq = 0
Therefore, 80 - 4x = 0
4x = 80
x = 20
So 20 leashes maximises profit.
P(x) = 80(20) - 2(20)^2 - 3
<em><u> P = $803 </u></em>
<em><u /></em>
The price to charge would be:
<u><em>p (x) = 88 - 2(20) = $48</em></u>
<u><em>The best reason would be that the price is a bit expensive for a leash so most people would not buy it.</em></u>
Answer:
7.28%
Explanation:
For this question we use the RATE formula that is shown in the attachment below:
Provided that
Present value = $1,075
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2 = $40
NPER = 20 years × 2 = 40 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the coupon rate is
= 3.64% × 2
= 7.28%
Answer:
Superstore
Explanation:
There are different stores but the supermarket can satisfy customers ' needs and wants
The supermarket is a very major retail store that sells a wide range of products such as food, shoes and accessories, clothing and accessories, sportswear, jewelry, beauty products, computers, electronic equipment, travel bags, household appliances, etc.
This is the store that, under the same roof, can satisfy the customer's desires and try to meet their expectations.
Answer:
Competitors who enter the market will temporarily face higher unit costs.
2. Usually none of the companies would make much profit in this situation.
Explanation:
Penetration pricing is a pricing strategy where the sellers of a new product set the price for their product unusually low. This is to entice consumers to purchase the product
Advantages of penetration pricing
- it increases market share of the firm conducting the penetration pricing
- it increases the sales of the firm practicing the penetration pricing
Disadvantages of penetration pricing
- Profit earned by the company might be too low
- once a low price has been set for the good, it might be difficult to raise it later as it may drive consumers away.
Price skimming is when the price of a new product is set usually high
Answer:
Premium
Explanation:
premium is the term used to describe payment made for insurance coverage. Premiums are paid by the policyholder to the insurance company. It is the insurance company that determines how much premiums the insured will be paying. Premiums are paid every end month, bi-weekly, monthly, or yearly as stated in the policy document. In other words, premium is the cost of insurance.
