Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 − 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the profit Fruit of the Loom will earn by charging the optimal block price. a. $108.50 b. $0.73 c. $1.37 d. $136.50
Q: PRICE (Dollars per blinkie) 12.00- 9.00 6.00 Demand | A I B D F T ☆ 6 U E 9 QUANTITY (Blinkies)…
A: Equilibrium quantity is when the supply and demand curves intersect, meaning the amount of an item…
Q: This ended up being wrong. Can you please re-do? Thanks
A: Market equilibrium: At the market equilibrium demand equals supply. Or at market equilibrium point…
Q: President Trump via twitter on 11/29/2018: “Billions of Dollars are pouring into the coffers of the…
A: The terms-of-trade argument against free trade is based on the idea that a country can improve its…
Q: Consider the following scenario to answer the next three questions. Ms. Franklin makes necklaces,…
A: Opportunity cost is a main concept in economics. It refers to the cost of the next option that is…
Q: television sellers expect the prices of televisions to fall in the future, we are likely to see the…
A: Supply refers to the quantity supplied by the producer to the public. There exists a positive…
Q: A thousand dollars is invested in Green Bonds for 7 months at an interest rate of 0.08% per month.…
A: The nominal interest rate is the interest rate that is unadjusted for inflation or deflation. In…
Q: A country is producing and consuming cell phones and clothes. Initially they are producing 50 cell…
A: To illustrate a country's production possibilities, use a production possibilities frontier (PPF)…
Q: two producers, person A and person B, have identical allocations of resources (40 hours of labor…
A: A situation in which one country, individual, or entity can produce a particular good or service…
Q: Refer to the accompanying figure. If the government has a budget of $300,000 to purchase surplus…
A: Price floor is defined as the minimum price that is set up by the government to support the…
Q: 2-19. Acellphonecompanyhasafixedcostof$1,500,000 per month and a variable cost of $20 per month per…
A: Given,
Q: QUESTION 1 Camille is a co-owner of a small bakery with her grandmother. She is aware that their…
A: Perfect competition is a unique form of the marketplace that permits multiple companies to sell the…
Q: The following table shows the cost a person B incurs to produce each pen. Cost of first pen Cost of…
A: Producer surplus occurs when price of a good exceeds the cost of the good. Graphically, it the area…
Q: Table: Revenues and Costs for Two Industries Manufacturing Sales revenue =PMQM= $100 Payments to…
A: The rental rate differential is the difference between the rental rate on capital in the…
Q: The following table gives the joint probability distribution between employment status and college…
A: Unemployment is a situation in which individuals in a society are willing to work but not get any…
Q: * Assignment #16 Using the attached two articles on net worth: 1. Define net worth: 2. State a…
A: Net worth, often referred to as wealth or net wealth, is a financial metric that represents the…
Q: QUESTION 4 Suppose a department store has two major departments: furniture and clothing. Due to…
A: Explicit cost is the cost which is actually incurred by the firm, during production. The firm adds…
Q: An increase in interest rates shifts the Investment Demand curve up and increases Business…
A: Aggregate expenditure(AE) is the summation of all the expenditure undertaken by all the economic…
Q: A firm faces inverse demand function p(q) = 120 - 4q, where q is the firm's output. Its cost…
A: A firm has following >demand and cost functions:p(q) = 120 - 4q -----------> demand…
Q: Wage per hour $7.25 $6.50 $4.50 1 500 800 900 D₂ 1200 Number of workers Please refer to the graph…
A: The equilibrium wage is the price where the supply of labor equals the demand for labor. In the…
Q: Which of the following should be included in the U.S. GDP for 2022? Explain how they will be handled…
A: A summation of countries' final goods and services is known as Gross domestic product. It measures…
Q: Again, please consider these two graphs, which depict the economies of Belleville and Thornvue,…
A: Opportunity cost is a fundamental concept in economics that refers to the value of the next best…
Q: In which of the following cases is the economy most likely considered a hyperinflationary economy?…
A: Hyperinflation is a condition in which the inflation rate is extremely high and out of control. It…
Q: 9 Production Possibilities Frontier Points Backpacks a b C d 1200 1000 600 0 Tablets 0 320 520 600…
A: ProductionThe production possibility frontier is defined as the various production goods or…
Q: Please label the circular flow diagram. Businesses Businesses Resource market Product market and…
A: The circular flow diagram is a visual model used in economics that shows how money and resources…
Q: PRICE (Dollars per unit) 18 16 12 10 4 2 0 2 4 20 7,10 W S S 6 8 10 12 QUANTITY (Units) 14 16 Using…
A: Elasticity of demand is a concept in economics that measures how responsive the quantity demanded of…
Q: The figure plots an index of real wages against population in England from the 1280s to the 1860s.…
A: The Malthusian trap was given by economist Thomas Malthus, According to him when the population…
Q: Inflation Rate (n) 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%…
A: Macroeconomic monitoring will remain critical since it determines the economy's final expansion path…
Q: Mary has $100 to spend on goods X and Y. The price of Y is pY = $2.50. Mary has well-behaved…
A: Utility maximization problem : With the given prices and the income, a consumer chooses his…
Q: Let us assume you are a consultant of a firm. You realize that due to costs structures changes, the…
A: It can be defined as a type of cost that varies with the change in the output or production, When…
Q: Suppose the US government is creating a policy to put a per unit tax on tanning beds, but cannot…
A: The incidence of tax refers to the distribution or burden of a tax across different parties in an…
Q: a. The following plot shows the 12-month percentage growth rates in real personal consumption…
A: The crowding-out effect signifies that the government spending within the economy had declined and…
Q: Suppose an individual had a budget of $73.50. The price of Good X is $3 and the price of Good Y is…
A: The Marginal or Market Rate of Substitution (MRS) depicts the rate at which a consumer is willing to…
Q: EXCHANGE RATE 10 8 (0 2 0 0 " === The market for foreign exchange 20 40 S₁ D₁ 60 QUANTITY (Millions…
A: Exchange Rate signifies the value of the currency against the currency of the other country. It…
Q: Consider the cash flow transactions with the changing interest rates specified as depicted in Figure…
A: Net Present Worth (NPW), also known as Net Present Value (NPV), is a financial metric used to…
Q: There have been suggestions that the "work ethic" in the U.S. has declined. The claim is that, as a…
A: The indifference curve is the summation of two goods or commodities that provide equal utility to an…
Q: The demand for meat pies is given by Qd = 60,000 – 10,000P. The current price for meat pies is…
A: Revenue maximisation refers to the process through which a business or production makes the maximum…
Q: Suppose Rosie's marginal utility from attending her 5th Atlanta Braves game was 40 and the marginal…
A: Suppose Rosie's marginal utility from attending ger 5th Atlanta Braves game was 40 and the marginal…
Q: Applying the principles of public finance, why should or should not the governments play a role in…
A: The concepts of public finance provide an essential framework for directing government economic…
Q: Alex and Jennifer are roommates. Alex values listening to loud music at $800, and Jennifer values…
A: The Coase theorem reflects that if the property rights are well defined and if the rights are…
Q: A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: Suppose that Germany can produce at most 150 cars or 50 tractors per month. France can produce at…
A: Opportunity cost is a fundamental concept in economics that refers to the value of the next best…
Q: What are the differences between NAFTA and USMCA? First, explain very briefly what these are, and…
A: NAFTA, or the North American Free Trade Agreement, was signed into law in 1994 by the United States,…
Q: Using what you know about the Phillips curve, determine whether the following quantities will…
A: The Phillips Curve is a graphical and economic concept that represents the relationship between…
Q: Find the present worth in year 0 for the cash flows shown. Let/= 20.00% per year. (Round the final…
A: Present worth, also known as present value, is the current monetary value of future cash flows or…
Q: QUESTION 42 A consumption tax is likely to increase savings as long as individuals: choose to…
A: A consumption tax is typically levied on the purchase of goods or services and is paid directly or…
Q: Suppose there are two sectors, call them A [agriculture] and M [manufacturing]. People earn say $5…
A: Income inequality refers to the income gap between the rich and the poor people in the country. The…
Q: QUESTION 10 Mary is the only one in town who can make red velvet cupcakes. Each cupcake costs her $4…
A: marginal revenue at price 4.5= (Revenue at price 4.5 - Revenue at price 5) / (quantity at price 4.5…
Q: In the following diagram you are given two technologies, A and B, which can produce 100 metres of…
A: The total cost incurred by a company while using economic resources to generate goods and services…
Q: You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000…
A: The amount that the lender charges the borrower over and beyond the principal amount is referred to…
Q: A Clinical Laboratory plans to build a waste water management installation (IPAL) independently. For…
A: Equivalent Uniform Annual Cost (EUAC) is a financial metric used in various fields, including…
Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 − 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the profit Fruit of the Loom will earn by charging the optimal block price.
a. $108.50
b. $0.73
c. $1.37
d. $136.50
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 5 images
- Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 - 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the profit Fruit of the Loom will earn by charging the optimal block price. . . :. . $0.73 $1.37 $108.50 $136.50Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 − 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the price Fruit of the Loom should charge for a package of women's underwear. $108.50 $1.09 $1.02 $136.50The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ Number
- The inverse demand for tea is given by P = 8 – 0.03Q, where Pis the price per a gram of tea and Q is the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.02q,?, where q, is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.02q22, where q2 is the number of grams of tea it brings to %3D %3D market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £…Based on Zangwill (1992). Murray Manufacturing runs a day shift and a night shift. Regardless of the number of units produced, the only production cost during a shift is a setup cost. It costs $8000 to run the day shift and $4500 to run the night shift. Demand for the next two days is as follows: day 1, 2000; night 1, 3000; day 2, 2000; night 2, 3000. It costs $1 per unit to hold a unit in inventory for a shift. a. Determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. (Note: Not all shifts have to be run.) b. After listening to a seminar on the virtues of the Japanese theory of production, Murray has cut the setup cost of its day shift to $1000 per shift and the setup cost of its night shift to $3500 per shift. Now determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. Show that the decrease in setup costs has actually raised the average inventory level. Is this…There are two types of goat milk consumers in the market: Elves and Hobbits. Elves' inverse demand function is pE(g) = 10 – 8qE , and Hobbits' inverse demand function is pH(p) = 12 – 7qH . Suppose the market has only one goat milk producer, Dolf, whose cost function is C(q) = 4q. Dolf can easily tell the difference between Elves and Hobbits, and he can charge different prices for Elves and Hobbits respectively. What will Dolf's total profits be? Round your answer to 2 decimal points. Answer: 191 The correct answer is: 3.41
- Suppose the monthly demand for golf services at a golf club is given by the inverse demand function, P = 20 – Q. The marginal cost to the golf club for each round is €2. There are 10 customers with exactly the same inverse demand functions. The fixed costs of running the club are €500 a month. At the moment the golf club charges each person €11 per round and each person plays 9 rounds of golf a week. The unit price that the club should charge each player under an optimal two-part tariff is 4 2 162 11Jack is the owner of the only local bar in a small town.He sells whiskey in one-ounce glasses. For simplicity, let’s assume it doesn’t cost Jack anything to run his business. There are two customers, Adam and Burt who are twin brothers. Adam’s demand function is yA = 16 – 2p, and Burt’s demand function is yB = 8 – p (price is measured in dollars and quantity is measured by ounces). Jack knows their demand functions, but the problem is that he cannot tell them apart since they look exactly the same to him. To increase his profits, Jack offers the following two options that his customers can choose from: (1) You can pay $T1 up front and drink as much as you want; or (2) Pay $T2 up front and the price per ounce of whiskey will be $p. 1.a If p = 4, what is the maximal T2 that Jack can charge so that Burt is willing to come to the bar? 1.b What is the maximal T1 that Jack can charge so that Adam will choose the first pricing option?Jack is the owner of the only local bar in a small town.He sells whiskey in one-ounce glasses. For simplicity, let’s assume it doesn’t cost Jack anything to run his business. There are two customers, Adam and Burt who are twin brothers. Adam’s demand function is yA = 16 – 2p, and Burt’s demand function is yB = 8 – p (price is measured in dollars and quantity is measured by ounces). Jack knows their demand functions, but the problem is that he cannot tell them apart since they look exactly the same to him. To increase his profits, Jack offers the following two options that his customers can choose from: (1) You can pay $T1 up front and drink as much as you want; or (2) Pay $T2 up front and the price per ounce of whiskey will be $p. 1.a If p = 4, what is the maximal T2 that Jack can charge so that Burt is willing to come to the bar? 1.b What is the maximal T1 that Jack can charge so that Adam will choose the first pricing option? Answer Key that was given. I seems not to understand…
- Exercise 4.6 An econometrician hired to analyse a local golf course has determined that there are two types of golfers, the regular and the occasional. The annual demand for games from regular players is given by QH = 24 – 0.3P, where P is the price of a round of golf. On the other hand, the annual demand for occasional items is given by QO = 10 – 0.1P. The marginal cost and the average total cost per item are equal to €20. a) If you could distinguish between regular and casual players, what price would be set for each type? How many games would each type of player play? How much profit could the golf course generate? Represent graphically. b) As an alternative to the discrimination of third degree prices, those in charge consider a double tranche rate according to which the members can play as many games as they wish at a price of € 20 per game. How much profit will the golf course generate if it charges all players the same annual fee for becoming a member of the club? What if you…The graph shows the demand (D), marginal cost (MC), marginal revenue (MR), and average variable cost (AVC) curves for a firm that is a price maker for its product. The MC and AVC curves slope upward because of limited space and resources for production activity: To increase output, the firm must bring older, less-reliable equipment out of storage, pay its workers extra for overtime hours, and so on. If the firm is able to practice price discrimination, using the two prices indicated by the two points indicated on the demand curve, use the area tool to outline the region that represents the net revenue (revenue minus production costs, but ignoring fixed costs). The lower boundary of the region should be slanted. To refer to the graphing tutorial for this question type, please click here. Price MR MG D QuantityThe graph shows the demand (D), marginal cost (MC), marginal revenue (MR), and average variable cost (AVC) curves for a firm that is a price maker for its product. The MC and AVC curves slope upward because of limited space and resources for production activity: To increase output, the firm must bring older, less-reliable equipment out of storage, pay its workers extra for overtime hours, and so on. If the firm is able to practice price discrimination, using the two prices indicated by the two points indicated on the demand curve, use the area tool to outline the region that represents the net revenue (revenue minus production costs, but ignoring fixed costs). The lower boundary of the region should be slanted. To refer to the graphing tutorial for this question type, please click here. Price MR MC AVC D Quantity