For a certain product, the linear demand curve is described by the equation, Quantity = 10,528 - 474 * Price. Variable cost to manufacture this product is $8 per unit. Calculate optimal price for this product. (Rounding: penny.)

For a certain product, the linear demand curve is described by the equation, Quantity = 10,528 - 474 * Price. Variable cost to manufacture this product is $8 per unit. Calculate optimal price for this product. (Rounding: penny.)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

See similar textbooks

Related questions

Q: Q48 Marginal cost is defined as the... a. Change in total cost resulting from an additional unit of…

A: Marginal cost is one of the cost of production. Cost is very important factor for a firm. There are…

Q: Revenue The Better Baby Buggy Co. has just come out with a new model, the Turbo. The market research…

A: Introduction Revenue is the multiple of price and quantity of the commodity. Here we have given…

Q: An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS 40 each. When the…

A: revenue = price* quantity sell

Q: A small ice cream company estimates its revenue to be R = 6z dollars, where z = the number of quarts…

A: Note: There are four sub-parts in the given question. Hence, we shall solve only the first three sub…

Q: The demand function for a product is p=30–0.3q and the average cost function is ē=0.2q+5+40/q ,…

A: Given Information: Demand function P = 30-0.3qAverage cost c¯ = 0.2q+5+40q Total revenue (TR) = P x…

Q: An exporter of handbags has just entered a new market. This exporter faces the following…

Q: Suppose there is a decrease in the demand for high-definition televisions. What effect might this…

A: The demand curve shifts when there is a change in other factors other than price of commodity. If…

Q: A large company in the communication and publishing industry has quantified the relationship between…

A: Cost is the expenditure incurred by firms on the production of goods and services. Revenue is the…

Q: Revenue The Better Baby Buggy Co. has just come out with a new model, the Turbo. The market research…

A: Total revenue refers to the price that a seller receives for selling the total amount of goods.…

Q: TRUE of FALSE Cost- plus pricing is circular for the manufacturing industry in that demand must be…

A: Cost-plus is a pricing method which uses to secure margin by fixing mark-up. The manufacturing firm…

Q: Business Unit A, the supplying business unit, is selling to an outside market. It has excess…

A: Transfer price is defined as a price at which related parties transact with each other such as…

Q: TOTAL PROFITS UP OR DOWN? Kiran's Kandles sells a bathroom candle set for $37.25. The variable cost…

A: The elasticity of a good is used to measure the responsiveness of consumers to the demand of a good…

Q: Mead Plumbing currently sells thread seal tape at a price of $42.00 per roll. Their research…

Q: Calculate the market equilibrium level of price and quantity for housing unit? Calculate price…

A: Given Qd = 25000-2P Qs = 10000+1p

Q: Q)1 a)What is the breakeven price of a product if the sales plan is 10,000 units, fixed costs are…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: upply and demand are given by the following equations, respectively: QS = 1000P – 500 QD = 4750…

Q: Supply and Demand Suppose the supply function fora product is given by 6p - q = 180 and the demandis…

A: Demand curve shows the inverse relationship between the price and quantity demanded other things…

Q: Mari and Tess are shopping for a cellphone accessories. Mari's demand function is Qx = 500 - 5P %3D…

A: Given, Meri’s demand function: Qx = 500-5P Tess demand function: Qx = 200 – 3P Price = Php50

Q: You are in charge of purchasing equipment for a construction firm. You just bought 5 new machines,…

A: Sunk cost refers to those cost that are incurred earlier and unable to recover it. Since, this sunk…

Q: Engineering increases the miles per gallon of gas rating (Mg) by 10 miles per gallon. The manager of…

A: Since, As the coefficient of Mg(Miles per gallon) is 10 which means with 1Mg per gallon of gas…

Q: Using the endpoint method, computing the percent change in price from point A to B, computes the…

A: In economics, the end-point method of computing price elasticity is widely used to compute the…

Q: The price-demand equation and the cost function for the production of active styluses are given,…

A: We have the demand function as: P = 470 - 0.05X The domain of any function f(x) is those values of…

Q: KK ltd produces goods for sale. From trend analysis the management accountant established a demand…

Q: denton productions limited utilizes statistical analysis to determine the optimal price for its…

A: Total Revenue = Price*Quantity Total Profit = Total Revenue - Total Cost

Q: Product A cost $8 and demand for product B is 12 units then product A is reduced in price to $5 and…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: QUESTION A producer sells 100 units of his good when he sets the price to CHE 27. He sells 8 less…

A: Given information P=27, Q=100 P=29,Q=92 FC=527.25 VC=14.50Q

Q: The business venture involves the sale of decorative jewelry cases. It costs the startup $280 to…

A: Production refers to the changing of inputs into output. Cost refers to the amount that is incurred…

Q: The Times-Herald is planning a special-edition magazine. The publishing expenses include fixed costs…

A: Assume that the quantity of the given good is equal to Q units.

Q: New technology introduced which reduces cost of producing of hybrid cars. Graph pre-market…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A large company in the communication and publishing industry has quantified the relationship between…

A: Demand function is:- P=150-0.02D TR= Price×Demand…

Q: Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per unit. If…

A: Given The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per unit. If demand…

Q: A firm purchases copper pipes a few years ago at $10 per pipe and stored them, using them only as…

A: Money that has already been spent and can't be recouped is known as a "sunk cost." The sunk cost is…

Q: jacket particular jacket estimated that the Average Demand will be 5000 units. If the jacket does…

Q: Term used to describe demand that can be accuratelycalculated to meet the need of a production…

A: Demand shows the quantity of good and service that a consumer is willing to buy at the given price…

Q: The demand equation for Widgets can be assumed to be P = 1,350 – 150 where P is the price per unit…

A: Here we calculate the quantity at maximize profit and price to maximized profit by using the given…

Q: OPEC currently produces about 38 per cent of the world output of oil. Assuming the short-term price…

A: Price elasticity of demand (PED) refers to the responsiveness of change in quantity of goods due to…

Q: The demand function for a certain product is determined by the fact that the product of the price…

A: The cost is the expenditure that is incurred in the production of goods and services in an economy.…

Q: The price of a product is expressed as p, PHP = 10 – 28D where D is the demand. Which of the…

Q: The total revenue of a purely competitive firm from selling 6 units of output is $48. Based on this…

A: Units=6 Total Revenue=48

Q: You are the marketing manager of the Business Unit (BU) that produces polystyrene (which is an input…

A: The firm will always aim to produce at a point or at a combination where it can minimize its cost.…

Q: Gasoline prices above $3 per gallon have affected what Enterprise Rental Car Co. can charge for…

A: Equilibrium price refers to the price at which the quantity demanded is equal to the quantity…

Q: demand curve for product x is estimated to be linear and given by equation Qd = 150-3p and the…

A: Equilibrium is achieved at the output level where Qs=Qd

Q: Leopard golf clubs usually sell for $1300. At this price, the retailer can sell on average 20 sets…

A: Revenue optimization is a mixture of demand, pricing, and marketing strategies utilized to maximize…

Q: A large company in the communication and publishing industry has quantified the relationship between…

A: Demand Function: P = 160 - 0.02QdTotal Revenue Function: TR = P.QTR = Q(160 - 0.02Q)TR = 160Q -…

Question

Optimal Price

For a certain product, the linear demand curve is described by the equation, Quantity = 10,528 - 474 * Price. Variable cost to manufacture this product is $8 per unit.

Calculate optimal price for this product. (Rounding: penny.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Explanation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Find the total revenue generated if price is $30 and output sold is 66 units
The variable cost to make a certain product is $73 per unit. Research indicates that the lowest price no one will pay for this product is $171. Calculate optimal price for this product. (Rounding: penny.)
Please no written by hand the demand function for a manufacturer's product is p = f(g) = - 0.20g + 500, where p is the price (in dollars) per unit when q units are demanded (per day). Find the level of production that maximizes the manufacturer's total revenue and determine this revenue. what quantity will maximize the revenue. q = blank units
A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p= 200-0.05D where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is $15000 per month and the variable cost is $50 per unit. a. What is the number of units that should be produced and sold each month to maximize profit? b. What is the domain of profitable demand during a month? Show your spreadsheet.
Please answer with details on how to do it. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is P = -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Total cost = fixed cost + Variable cost, TC = CF + CV Revenue = Demand x Price, TR = D x P Profit = Total Revenue – Total Cost, P = TR – TC a) Develop the equations for the total cost and total revenue. Find the breakeven quantity c) How many units must be sold to maximize profit? What is the company’s maximum profit?
show calculations A wheat seed dealer has a cost function: C = 100 + 20Q +Q2. Inverse demand is: P = 620 -2Q. Maximum profit is: A. 38,400 B. 36,200 C. 39,200 D. 29,900 Handwritten solution not required correct answer will get instant upvote.
Find output of total revenue is $6400 and the price per unit is 400
A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p= 75 -0.10 (D is the demand or quantity sold per month and p is the price in doilars). The fbxed cost is $1.000 per month and the variable cost is $30 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? a. The maximum profit per month for this product is S (Round to the nearest dollar.) b. The range of profitable demand during a month is from units to units. (Round up the lower limit and down the upper limit to the nearest whole number.)
The following graph illustrates the weekly demand curve for motorized scooters in Roanoke. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per scooter) 260 240 220 200 180 160 140 120 100 80 60 40 20 0 0 9 18 27 A X B Demand 36 45 54 63 72 81 QUANTITY (Scooters) 90 99 108 117 Total Revenue ?
Calculate the price per unit if it is given that Total revenue is $840 and the total output is 32 units
Calculate output if total revenue is $6600 and the price per UNIT is $11
10. Smart Phones, Inc. buys one model of smartphone, paying $2370 per case of 20 phones. Find the asking price for each assuming a 40% markup on cost.