Please help with the following problem:
Stinging Pesticides, Inc., provides scorpion control services, to residential and business customers in the El Paso area. The company recently raised its service price from $70 to $80 per annual treatment. As a result, sales fell to 37,500 from 52,500 treatments in the year earlier peri
Mary Richards is a pricing manager of Caring Move, Inc., a local visiting nurse firm in the home care market. Richards has been asked to complete an analysis of profit margins for the firm. Unfortunately, her predecessor on this project was abruptly terminated, leaving only sketchy information on existing pricing practices.
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You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity of demand is -2, while group 2's is -3. Your marginal cost of producing the product is $30.
a. Determine your optimal m
As manager of Citywide Racquet Club, you must determine the best price to charge for locker rentals. Assume that the (marginal) cost of providing lockers is 0.
The monthly demand for lockers is estimated to be: Q= 100-2P where P is the monthly rental price and Q is the number of lockers rented per month.
a. What price wou
Please help with the following problems. Provide step by step calculations.
A monopolist produces trinkets at $2/unit. The demand for trinkets as a function of unit price p is: D(p) = 100-p.
1) At a unit price of $10, what will the demand be?
2) At a unit price of $10, what will total revenue be?
3) At a unit price of $
The producer of a cosmetic product needs to decide theoptimalprice to charge and theoptimal quantity to supply in the market. The demand function of the cosmetic product is given as QD = 40 - 2P, while the supply function of the cosmetic product is given as QS = 2P where P is price, QD is quantity demanded, and QS is quantity
From the following payoff matrix, where the payoffs are the profits or losses of the two firms, determine (a) whether firm A has a dominant strategy, (b) whether firm B has a dominant strategy, (c) theoptimal strategy for each firm, and (d) the Nash equilibrium, if there is one.
1. After a 10% price discount, a firm found that its weekly sales increased by 30%. If the marginal cost (MC) of this product is $40 each, what is theoptimalprice for this product?
2. Suppose the total cost equation for a competitive firm is given by:
TC=1,000+ 10Q -2Q^2 + 0.5Q^3
(A) At what output is the average vari
I need some help in answering the questions about this case study:
U = A(D^1/3 * C^2/3)
Doughnuts are $5
Cookies are $20
Income is $200
a. Assume that A= 1 for Janet's utility function (above). Calculate the marginal utility of doughnuts; the marginal utility of cookies;
b. Calculate the marginal rate of substitution of