Question: 1. What is MR s numerical value when dd has unitary elasticity? Explain 2. Explain the error in the following statement: A fi rm out

1. What is MR ’s numerical value when dd has unitary elasticity? Explain

2. Explain the error in the following statement: “A fi rm out to maximize its profits will always charge the highest price that the traffic will bear.” State the correct result, and use the concept of marginal revenue to explain the difference between the correct and the erroneous statements.

Step by Step Solution

★★★★★

3.47 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Mr Rs numerical value when the demand has unitary elasticity is one For unitary elasticity demand ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Find the error in the following proof that 2 = 1. Consider the equation a = b. Multiply both sides by a to obtain a 2 = ab. Subtract b 2 from both sides to get a 2 b 2 = ab b 2 . Now factor each...

Describe the error in the following proof that 0 * 1 * is not a regular language. (An error must exist because 0 * 1 * is regular.) The proof is by contradiction. Assume that 0 * 1 * is regular. Let...

Find the error in the following "proof" that 0 = 1, In (1/t) dt, set u = 1/t and dv = dt. Then du = -t-2 dt and uv = 1. Integration by parts gives (1/t)dt = 1 - (-1/t)dt or 0 = 1

1. What benefit does a variable provide when developing and examining models? 2. Explain the purpose of simple linear regression and scatter diagrams. Please provide a simple linear regression model...

A product has the demand function p = 100 - 0.5q where p is in dollars and q is the number of units. (a) Find the elasticity (q) as a function of q, and graph the function f (q) = (q) (b) Find where...

Martha Millon, financial manager for Fish & Chips Inc., has been asked to perform a lease-versus-buy analysis on a new computer system. The computer system has an after-tax cost of $975,000, and if...

Highly variable health care and patient outcomes occur in different regions of the U.S. According to a report from the American Cancer Society, deaths from colon cancer have declined in all but three...

S26-9 Using the time value of money Use the Present Value of $1 table (Appendix B, Table B-1) to determine the present value of $1 received one year from now. Assume an 8% interest rate. Use the same...

Electronic Municipal Market Access (EMMA) provides investors and others interested in state and local government debt and financial information an excellent resource. By accessing EMMA an individual...

Edited excerpts from Sara Lee Corporations Year 2 tax footnote follow: Current and deferred tax provisions (benefits) were: The following are components of the deferred tax (benefit) provisions...

Mandel Companys costs were over budget by $ 252,000. The company is divided into West and East regions. The East Regions costs were under budget by $ 74,000. Determine the amount that the West...

Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A $49.00 15.10 Product B $59.00 11.50 5.00 Sales price...

Which of the following activities of a city government would most likely be classified as a business - type activity? Multiple Choice Operating an investment pool for a number of city and county...

To 500 ml of 0.150 M AGNO3 solution were added 500 mL of 1.09 M Fe2+ solution and the reaction is allowed to reach and equilibrium at 25 C. Ag (aq.)+ Fe2+ (aq.) Fe ( For 25 mL of the solution, 30 mL...

The degree of dissociation of HI at a particular temperature is 0.8. Calculate the volume (in lit) of 2M Na, S203 solution required to neutralise the iodine present in a equilibrium mixture of a...

Two moles of an equimolar mixture of two alcohols, R1 - OHand R2- OH are esterified with one mole of acetic acid. If 80% of the acid is consumed and the quantities of ester formed under equilibrium...

The given plot shows the variation of U, the potential energy of interaction between two particles with the distance separating them, r. Then which of the following statements are correct: (A) B and...

Which measure of central tendency better describes the weight of a plain M&M? The mean better describes the weight because the distribution is

ANNUAL REPORT 2019 MOSCOW COPENHAGEN MANCHESTER MINSK DUBLIN AMSTERDAM LONDON BRUSSELS DSS ELDOR F FRANKFURT PARIS ASTANA MUNICH ZURICH GENEVA MILAN TURIN GENOA VENICE MADRID BARCELONA BELGRADE...

Date Issued: June 25, 2021 File: 18174 BETWEEN: COMPLAINANT AND: Indexed as: Singh v. Dodd's Furniture (No. 2), 2021 BCHRT 85 IN THE MATTER OF THE HUMAN RIGHTS CODE, RSBC 1996, c. 210 (as amended)...

Paragraph 1... ...2 Styles 1. Journal Entries: 1. January 2: Mr. Burns opened up his new company and dissolved the old one. The balances of the accounts (with the exception of fixed assets and...

commentthecaseofKeriChisolm,ofCostaMesa,California.DescribethereasonsforherdisciplineandhowitreflectsonhercompetenceasaCPA. pdf page 19 UPDATE SPRING/SUMMER 2016 ISSUE NO. 81 PRESIDENT'S MESSAGE One...

Tax Facts Mr. and Mrs. A report all of their income and deductions, including all of their business income and deductions, on their joint personal return. Mr. and Mrs. A use the cash method of...