Purchase Solution

cost minimization and the price elasticity/total revenue problems

Not what you're looking for?

Ask Custom Question

I am stuck at price elasticity, so if you can help me out.

Attachments
Purchase this Solution
Solution Summary

Help with cost minimization and the price elasticity/total revenue problems is given.

Solution Preview

I attached the file with the detailed explanation for the cost minimization and the price elasticity/total revenue problems.
<br>I tried to explain all terms ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Firm Costs and Response to Input Price Changes

    81276 Firm Costs and Response to Input Price Changes For a firm facing a constant returns to scale Cobb-Douglas production, derive the total cost function for the firm, Calculate the elasticity of total cost with respect to output for the firm, and illustrate

  • Price elasticity of demad, determinants of elasticity

    There are three problems. Solution to first problem predicts the effect of price increase on total revenue for given values of elasticity. Solution to second problem explains the reasons for higher elasticity of Coca-cola.

  • Calculate the optimal parameters in the given case.

    Markup formula gives us Optimal Price = (Ep/(1+Ep))* MC Where Ep is price elasticity of demand and MC is marginal cost.

  • Costing

    4303 Cost table with graphs using excel Using the following demand schedule, calculate total revenue, marginal revenue and own-price elasticity of demand. Then show the relation among marginal revenue, price and elasticity of demand.

  • Calculating profit-maximizing price and output

    ) Price elasticity of demand=(dQL/dPL)*(PL/QL)=-2500*(35/37500)= -2.33333 The solution describes the steps to calculate profit-maximizing price, output, total profit contribution levels and associated price elasticity of demand.

  • Basic economic concepts

    Problem 2 Given the following data set, list the point elasticity and the total revenue at each price point. Where is the price elastic, and where is it inelastic? Where is revenue maximized? What is the rational price point? Fully explain.

  • Managerial Economics

    At any price in the inelastic range the firm can increase price to increase total revenue, and at any price in the elastic range the firm can reduce price to increase total revenue. We know this as the total revenue test of elasticity.

  • Compute the price elasticity of demand

    So: Total cost = Q^2 + 16Q + 20 Average cost is (Total Cost)/Q: Avg Cost = Q + 16 + 20/Q Marginal cost is the derivative of Total cost with respect to Q: Marginal Cost = 2Q + 16 Now, revenue is price times quantity demanded (P*Q).

  • Analyzing the Explicit and Implicit Costs

    =2040 Total revenue will increase by $2040 There are 3 problems.

View More Related Solutions