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
The fact that the value of a company such as eBay increases as more people join and use eBay is characterized as the <u>Network effect.</u>
<h3>What is the Network effect?</h3>
The network effect is used to refer to instances where companies become more valuable when there are more people using the company's services and products.
This is especially common with E-commerce websites like eBay which became more valuable as more people both sold goods on it, and bought from it as well.
Find out more on the network effect at brainly.com/question/28487291
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Answer:
$2.27
Explanation:
Unit Cost =
If the average cost method is used, the materials cost per unit (to the nearest cent) would be: $2.27
An investor gets paid a dividend. An ownership stake in the company gives the investor (owner) the right to a portion of the company's earnings. This payout of a share of profits of a business to the owners is called a dividend.
The Retained Earnings account has no money in it. Retained Earnings represent the business's commitments to its stockholders. It is the number of past earnings that have not been paid out to owners.
<h3><u>Retained Earnings: What Are They?</u></h3>
After deducting dividend payments, a company's retained earnings are its total net earnings or profits. The term "retained" refers to a crucial idea in accounting that describes how earnings were held by the corporation rather than distributed to shareholders as dividends.
Because of this, retained earnings go down when a business experiences a loss or pays dividends and go up when new profits are generated.
<u>What are the retained earnings calculation and formula?</u>
RE = BP + Net Income (or Loss) - C - S, where:
BP = Starting Period RE
C = Cash dividends
S = stock dividends.
Learn more about creditors and investors with the help of the given link:
brainly.com/question/17364419
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