B- interior designer !!! Being able to design is an import part in showing off your creative side :) hope this helps
Answer:
A. 15 units
B. $130
Explanation:
In order to solve this, we need to use the profit maximization condition for monopoly.
MR = MC will give us the optimal quantity and price for the monopolist.
The consumer's demand for the product is:
Qd = 80 - 0.5P
Therefore, we have:
P = (80 / 0.5) - (Qd / 0.5)
P = 160 - 2Qd
Recall that, Total Revenue:
TR = P * Q
So, in this case TR = 160Q - 2Q^2
MR = d(TR) / dQ = 160 - 4Q
Now, MR = MC
160 - 4Q = 100
4Q = 160 - 100
4Q = 60
Q = 60 / 4
Q = 15 units.
Now, P =160 - 2Q
P = 160 - 2(15)
P = 160 - 30 = 130
The optimal number of units to be placed in a package will therefore be 15 units while the firm should charge $130 for this package.
Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
Answer:
False
Explanation:
The statement that says that in the context of project management, a task duration is always the same as the amount of work (effort) it takes to finish the task is false because the effort is the time a person needs to finish a task while the duration is the period of time that a person has to finish it. For example, an employee has a task that takes forty hours of work to finish it but he has a month to do it. In this case, the effort is forty hours but the task duration is one month.
When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect. A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. T<span>he change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.</span>
