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sveticcg [70]
2 years ago
5

Suppose a firm produces two products, X and Y. The firm earns revenues from X equal to $70,000 and revenues from Y equal to $60,

000. The own price elasticity of demand for X is -1.5 and the cross-price elasticity of demand between X and Y is -0.80. If the firm decreases the price of product X by 1%, the change in total revenues will be ______________ $
Business
1 answer:
tia_tia [17]2 years ago
3 0

Answer:830

Explanation:

simply follow the demand fomula and plug variables into desired location.

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An oil refinery is located on the north bank of a straight river that is 3km wide. A pipeline is to be constructed from the refi
Mariulka [41]

Answer:

$6,598,076.21

Explanation:

<h2>THE KEY IS TO FIND OUT THE COST FUNCTION, the calculations are very easy!!!</h2><h2></h2><h3>In order to find the cost function, take a look at the drawing attached. </h3>

We can see the river (sort of) that is 3 km wide and the storage tanks on the other side of the river 8 km apart.

<h3 />

Laying pipes under (across) the river costs 1,000,000 the km & laying pipes over land costs 500,000 per km.

<h3 /><h3>So basically the cost function is 1,000,000 multiplied by something plus 500,000 multiplied by another something.</h3><h3 />

The distance across the river can be found by using Pythagoras Theorem. A side is 3 km the other is unknown, so we call it X. And it is equal to:

\sqrt{3^{2} +x^{2}}=\\\sqrt{9 +x^{2}}

And we multiply it by 1,000,000; the cost of laying pipe under the river, the we get:

1000000\sqrt{9+x^{2}

The distance over the land is (8-x), as we can see in the drawing. So we multiply it by its cost, 500,000. And we get 500,000(8-x).

So the cost function f(x) would be:

f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)

<h2>From here, we just have to differentiate and the derivative found must be equal to zero in order to minimize cost. </h2><h3>The value of x when the derivative is zero is plugged in the original function to get the cost.</h3><h3 /><h2>LET'S DO THIS</h2>

f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(x)=1000000(9+x^{2})^{1/2}+4000000-500000x\\f'(x)=\frac{1}{2} 1000000(9+x^{2})^{-1/2}(2x)-500000\\\\f'(x)=\frac{1000000x}{\sqrt{9+x^2}}  - 500000

<h2>f'(x)=0</h2>

f'(x)=\frac{1000000x}{\sqrt{9+x^2}}  - 500000=0\\\frac{1000000x}{\sqrt{9+x^2}}  = 500000\\\frac{2x}{\sqrt{9+x^2}}  = 1\\2x={\sqrt{9+x^2}}\\4x^2=9+x^2\\3x^2=9\\x^2=3\\x=\sqrt{3} \\

And we plug square root of 3 in the original cost function  ad we get

f(\sqrt{3} )=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(\sqrt{3})=1000000\sqrt{9+(\sqrt{3} )^{2}} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{9+3} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{12}+500000(6.27)\\f(\sqrt{3})=1000000(3.46)+500000(6.27)\\f(\sqrt{3})=3464101.62+3133974.60\\f(\sqrt{3})=6598076.21\\

<h2>so the minimal cost is $6,598,076.21</h2><h2 /><h3 />

6 0
3 years ago
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Pro
vlada-n [284]

Answer:

The mark up percentage on total cost is 13%.

Explanation:

Mark up percentage on total cost refers to the profit as a percentage of the total cost.

Therefore, the mark up percentage on total cost can be calculated using the following formula:

Mark up percentage on total cost = (Desired profit / Total cost) * 100 ......... (1)

Where;

Desired profit = $143

Total cost = $1,100

Substituting the values into equation (1), we have:

Mark up percentage on total cost = ($143 / $1,100) * 100 = 0.13 * 100 = 13%

Therefore, the mark up percentage on total cost is 13%.

8 0
2 years ago
True or False. Since grant proposals need to be short, budget and personnel information should not be included.
Fittoniya [83]
False because is not to be included
6 0
2 years ago
Pierce Corporation exchanged old equipment for new equipment. The original cost of the old equipment was $120,000, and its accum
ololo11 [35]

Answer:

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

--to record trade of equipment--

Explanation:

Let's break the transactions into small parts:

We need to remove the old equipment from accounting along with their accumulated depreciation so:

accumulated depreciation 40,000 debit

                   old equipment               120,000 credit

Then, we debit the new equipment at fair value:

new equipment 50,000 debit

Last, assuming the trade has commercial substance: we recognize the gain or loss on sale:

book value of traded equipment: 80,000

fair value of new equipment:         50,000

loss at disposal:                              30,000

<u>Thus, the journal entry will be as follows:</u>

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

4 0
3 years ago
Rob has just received a check for $32,595. This is a return from an investment that he made 18 years ago. He was told that the r
Grace [21]

The original investment that Rob made was $4,981 with the rate of interest of 11% per year for 18 years.

<h3 /><h3>What do you mean by present value?</h3>

Present value (PV) refers to the current price of a future amount of money or move of cash flows given a certain price of return. Future cash flows are discounted at the discount price, and the better the discount price, the lower the present price of the future cash flows.

As per the given information:

A: $32,595

P: ?

r: 11%

n = 18 years

A=P(1+ \dfrac{r}{100} )^{n} \\\\32,595 = P(1+ 0.11)^{18} \\\\32,595 = P (1.11)^{18} \\\\32,595 = 6.5435P\\\\ P = \$4,981

Therefore, The original investment that Rob made was $4,981 with a rate of interest of 11% per year for 18 years.

learn more about present value:

brainly.com/question/20813161

#SPJ1

<h3 />

3 0
1 year ago
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