Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 13, 2024

A company produces and sells 100 picnic baskets a day at $80 each. When it cut the price to $64 it increased its sale to

A company produces and sells 100 picnic baskets a day at $80 each. When it cut the price to $64 it increased its sale to 116 picnic baskets a day. Which of the following statements is correct? Question 9Answer a. The marginal revenue is greater than zero. b. The demand for the picnic baskets is elastic. c. The company should raise its price in order to increase profits. d. The elasticity of demand is approximately 1.25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Issues in Economics Today

Authors: Robert C. Guell

8th edition

1259746399, 1259746390, 978-1259746390

More Books

Students also viewed these Economics questions

Question

★★★★★

The following model was fitted to a sample of 25 students using data obtained at the end of their freshman year in college. The aim was to explain students weight gains: yi = 0 + 1x1i + 2x2i + 3x3ii...

Answered: 1 week ago

Question

★★★★★

How can organizations prevent SQL injection attacks from being successful?

Answered: 1 week ago

Question

★★★★★

For the events A and B in a sample space , we know that P(A B) = 16. Then, the value of P(A) P(B) is (a) always equal to 56 (b) equal to 56 provided that AB = (c) always equal to 16 (d) equal to...

Answered: 1 week ago

Question

★★★★★

Show that any second-order Markov process can be rewritten as a first-order Markov process with an augmented set of state variables. Can this always he done parsimoniously that is, without increasing...

Answered: 1 week ago

Question

★★★★★

In the fourth quarter, Big Company plans to produce 30,000 widgets in October; 38,000 in November: and 41,000 in December. It requires three direct labor hours at a rate of $15/hour to complete one...

Answered: 1 week ago

Question

★★★★★

Short Answer Questions Are the following statements True, False or Ambiguous? Provide a short (one or two sentence) justication for each of your answers. Your score will be based on your justication...

Answered: 1 week ago

Question

★★★★★

Mojave Manufacturing Company (MMC) is considering the introduction of a new product. Before deciding, they would like you to do a risk analysis of the situation to assess whether the introduction of...

Answered: 1 week ago

Question

★★★★★

Smylie & Son uses a fixed-period system to manage its inventory of hand-rolled cigars. One model, the "el diablo," enjoys robust demand at 480 boxes per week (20 cigars per box) with a standard...

Answered: 1 week ago

Question

★★★★★

23. Your company plans to expand into other countries, and you are charged with planning and executing the entry. Describe to the company's president your strategies for expansion and the five global...

Answered: 1 week ago

Question

★★★★★

Forest Fires and Acres Burned Number of fires and number of acres burned are as follows: Number of fires x 72 69 58 47 84 62 57 45 Numbers of acres burned y 62 42 19 26 51 15 30 15 Find y' when x =...

Answered: 1 week ago

Question

★★★★★

Discussion Post: Identify an approach or technique in 2 or 3 of the presentations. You can pick a different technique for each presentation you choose to discuss. This technique will have had a...

Answered: 1 week ago

Question

★★★★★

Current Attempt in Progress Blossom Company started the month of June 2022 with total assets of $202000 and total liabilities of $104000. During June, the business recorded $325000 in revenues,...

Answered: 1 week ago

Question

★★★★★

1. To provide an understanding that a person in a communication situation conveys three things at the same time: their position, basic interests and values.

Answered: 1 week ago

Question

★★★★★

4. What is meant by the statement: We are extremely limited in our willingness to allow others to put their own case in a social situation?.

Answered: 1 week ago

Question

★★★★★

8. Give three examples of how the level of confidence one has in someone can affect a communication situation.

Answered: 1 week ago

Previous Question Next Question