You are a monopolist who sells textbooks to undergraduate students. Currently you sell 100 books at a price of​ $100 each, for revenue of​ $10,000. Each book is essentially costless to​ print, so you ignore fixed costs and focus on maximizing revenue. Based on research by your marketing​ team, you learn that some students will not buy the book if the price goes up.​ Also, if you cut the​ price, more students will buy the book. Suppose the price elasticity of demand is​ -0.5. If the price of each textbook is increased by 10​ percent, the new revenue earned is ​$ nothing.

Answers

Answer 1
Final answer:

The monopolist can calculate the projected increase in total revenue after a 10% price increase by understanding that with a price elasticity of demand of -0.5, total revenue will increase as the loss in quantity sold is proportionally smaller than the gain from the higher price, leading to an increase in total revenue from $10,000 to $10,450.

Explanation:

The question involves calculating the effect of a price change on total revenue, given the price elasticity of demand. The price elasticity of demand is a measure used to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. The monopolist is considering raising the price of textbooks by 10%, knowing that the price elasticity of demand is -0.5, which indicates that demand is inelastic. In such a case, the increase in price will lead to a smaller percentage decrease in quantity demanded, thus allowing total revenue to increase. An elasticity of -0.5 means that for every 10% increase in price, the quantity demanded decreases by only 5%. Therefore, the new revenue will be higher than the initial $10,000.

To compute the projected total revenue after a 10% price increase:

Calculate the new price: $100 + (10% of $100) = $110.Calculate the percentage change in quantity demanded: 10% price increase × -0.5 elasticity = -5% change in quantity demanded.Calculate the new quantity demanded: 100 books minus (5% of 100 books) = 95 books.Calculate the new total revenue: 95 books × $110 per book = $10,450.

By increasing the price, total revenue would increase from $10,000 to $10,450, assuming the elasticity remains constant over the price range.


Related Questions

Given the option of receiving a generic résumé or a tailored résumé, employers prefer generic résumés. Please select the best answer from the choices provided T F

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The above statement is FALSE.

Explanation:

If you desire to grasp the hiring supervisors' consideration, you must provide them with what they require. You need to take the time to tailor your resume to every employer and its intentions to increase your possibility of acquiring marked. Before returning to a job posting, analyze the job classification to see what credentials are essential.

The answer to the question is false, employers do not prefer receiving generic resumes.

What is a resume?

This can be described to be a document that job seekers are known to add to their documents when they are sending in applications for a job.

The resume is known top contain details of their experience and their education as well as skills.

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The major advantage of using bloom's taxonomy in developing objectives is that the taxonomy: helps in the formulation of criteria for judging acceptable performance encourages educators to address complex cognitive processes as well as factual knowledge identifies an indisputable order in which objectives should be addressed in a lesson specifies the most appropriate instructional method for each type of objective

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The major advantage of using Bloom's taxonomy in developing objectives is that the taxonomy encourages educators to address complex cognitive processes as well as factual knowledge. Bloom's taxonomy is a hierarchy starting with create, evaluate, analyze, apply, understand and ending with remember. 

8. Bottle-propping should be avoided because A. it prevents bonding between baby and caregiver. B. some babies don't like it. C. it can cause indigestion. D. it can lead to obesity.

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 Bottle-propping should be avoided because it prevents bonding between baby and caregiver.

Bottle-propping should be avoided because it prevents bonding between baby and caregiver. The correct option is A.

Why should bottle propping be avoided?

Due to the risk of injury from bacteria present in baby bottles, doctors do not advise bottle-feeding infants. You can't closely monitor your infant if you prop a bottle and then go do something else. Baby can suffocate if the bottle is not withdrawn or if the baby is not prepared for the excess liquid flowing. they can aspirate the liquid from the bottle as opposed to ingesting it.

Infants who drink from a bottle that is propped up while lying down run the risk of developing an ear infection. Drinking causes fluids to collect at the back of the mouth, where it might enter the Eustachian tubes and cause an infection in the ears.

Thus, the ideal selection is option A.

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A government program that changes automatically, depending on GDP and a person’s income, is an example of _____.

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A government program that changes automatically, depending on GDP and a person’s income, is an example of automatic stabilizer. An automatic stabilizer is an economic policy that the government enforces to offset changes in the nations economy. By doing this, the government has control over the economy on an individual basis without having to intervene on each case since the policies are put in place. 

Edwin, a top manager in a bureaucratic organization, often engages in persuading employees while making decisions and focuses more on his team and provides extra coaching to employees. he also maintains a good reputation both inside and outside the organization. based on mcclelland's acquired needs theory, it can be inferred that edwin is an example of ___

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Based on McClelland's acquired needs theory, it can be inferred that Edwin is an example of a socialized power-oriented manager. David McClelland's acquired needs theory describes three needs: the need for achievement, the need for power, and the need for affiliation. In this situation, Edwin falls under the need for power category. 

Why do single stocks carry a high degree of risk? why do mutual funds carry less risk?

Answers

Mutual funds carry less risk compared to single stocks because mutual funds are more convenient and diversified. Mutual funds are being professionally managed by money managers. They are responsible in allocating the money to stocks, bonds or other money market securities.

Final answer:

Single stocks are riskier due to volatile short-term returns, making them less suitable for those requiring stable income, such as retirees. Mutual funds offer less risk through diversification and reduced transaction costs, which benefits long-term investors like young workers who can withstand market fluctuations. The choice between the two depends on one's life stage and risk tolerance.

Explanation:

Single stocks carry a high degree of risk because their rate of return can fluctuate significantly in short time frames, which could lead to potential financial loss. This is especially pertinent for someone such as a person nearing retirement age who needs more certainty in their income. In contrast, mutual funds carry less risk because they spread investments across various stocks, thereby diversifying and reducing the impact of any single stock's performance.

Mutual funds can also reduce transaction costs due to their buying and selling size, making it a prudent choice for young workers who have more time to ride out the stock market's ups and downs. Over an extended period, relying on the stock market can typically yield higher returns compared to safer investments like bonds or bank accounts, underlining the risk-return tradeoff that investors must consider based on their individual financial situations.

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What design flaw on this ballot could potentially cause confusion for voters? the ballot appears fine as it is, without any potential for confusion. the alignment of the yes/no arrows is confusing in some portions. it is not clear who is running for congressional or state offices. it is not clear where and how the ballot should be marked?

Answers

the alignment of the yes and no arrows is confusing in some portions
the answer is The ballot appears fine as it is, without any potential for confusion.

Three separate oligopolists in the same industry serve a city. company a is the dominant firm in the industry and produces a large share of the total output in the industry. companies b and c are rival firms, but they are much smaller than company
a. company a sets its price at a level that maximizes its own profits.according to the theory of price leadership, what will companies b and c likely do?

Answers

For the answer to the question above, I think the answer is that
companies b and c should set their prices that match the price of Company A.

I hope my answer helped you. Have a nice day ahead of you!

Answer:

Companies should follow the leading company prices.

Explanation:

Oligopoly is a market structure in which few companies dominate a given market. In the above case, company a (leader) has greater market power than the other two competitors (b and c). Companies will maximize their interest, as the company has the most market power, others will determine their prices based on leading pricing decisions.

Ken owns and operates living earth garden shop as a sole proprietorship. when ken dies, living earth will automatically

Answers

Sole proprietorships are the most basic form of business where there is only one owner. When the sole proprietor dies, say, for example, Ken who owns Living Earth Garden, the business technically dies or automatically cease to exist. There are options after death, however, if Ken has authorized a representative to care for the business upon his death, the operation may continue. 

Ken, as a sole proprietor, would likely have to pay from his personal assets if Jamie wins the lawsuit, as personal and business assets are not legally distinct in a sole proprietorship. The correct option is b.

If Jamie prevails in court against Ken, who operates Living Earth Garden Shop as a sole proprietorship, and after she slipped and fell in the shop's parking lot, the most likely scenario is that Ken will have to pay the judgment from his personal assets. This is because in a sole proprietorship, there is no legal distinction between the owner and the business, meaning personal assets are at risk for business debts and liabilities. The options such as the award of treble damages would typically be for cases involving coercion, intimidation, threats, or similar harms, which does not appear relevant to this particular negligence case. Moreover, filing for bankruptcy is a complex process that may offer some protection, but it does not automatically absolve the responsibility of judgments, especially if certain legal standards or conditions are not met.

The complete question is- Ken owns and operates Living Earth Garden Shop as a sole proprietorship. Jamie, a customer, sues Living Earth Garden Shop in civil court after she slipped and fell in the shop's parking lot. If Jamie prevails in court,

a. the court will award her treble damages.

b. Ken will have to pay the judgment from his personal assets,

c. Ken will have to pay the judgment from Living Earth Garden Shop's assets only.

d. Ken can avoid liability by filing for bankruptcy.

Identify the type of communication illustrated in the quotation.

"Hmmm. Let's see. I know I've solved one of these before. To figure out this problem, I need to use the formula for the area of a circle."

A. intrapersonal
B. interpersonal
C. small group communication
D. public communication
E. mass media

Answers

The type of communication illustrated is A) intrapersonal

​the main objective of _____ is to avoid problems or to identify them as soon as possible.

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The main objective of quality assurance is to avoid problems or to identify them as soon as possible. Quality assurance is making sure that a product or service maintains a set level of faulty. If more attention needs to be put on the processes to make sure that the quality stays, that's okay, but it needs to be maintained. QA is a shortened version of quality assurance and many company's have a QA team set in place so that mistakes and defects are prevented. 

Shared values among employees are the glue of successful management
a. True
b. False

Answers

Shared values among employees are the glue of successful management. True. In the workplace, it is important for employees to share similar values about their work and the company to achieve more. Leaders try and align their ethics and virtues with each other as it pertains to work and then pass the same feelings down to their employees that they manage. 

You operate a small catering firm specializing in sit-down dinner parties that you prepare and serve yourself with no helpers. A client of yours loves your food so much that she has asked you to cater her daughter's wedding reception for 300 people, to be held in her back yard. It's your first chance at a big event and you're not really set up for it. You don't have the equipment, you don't have the staff, and you don't have the connections to musicians; however, you're tempted. What would be your wisest decision?

A. Accept the job and use this chance to make all the contacts you need to expand your business.

B. Agree to make the food if the client will subcontract all the other services herself.

C. Turn down the job, explaining why you can't do it, and wish her luck finding someone else.

D. Turn the job down; however, give the client the name of a high-quality catering firm that can meet her needs.

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According to the sources on the internet, Letter D is the best answer. It is best not to accept that important and heavy responsibility if it will be your first time doing it. It is better to start off with small and easy requests and gradually increasing the tasks as your experience grew also. Since you will be turning down the offer, it is also proper and polite to refer the client to other businesses that can cater her needs.
It is D and A I am 100% sure

Your class is selling boxes of flower seeds as a fundraiser. the total profit p depends on the amount x that your class charges for each box of seeds. the equation p equals negative 0.5 x squared plus 36 x minus 206 models the profit of the fundraiser.​ what's the smallest​ amount, in​ dollars, that you can charge and make a profit of at least ​$388​?

Answers

well im sure u get 66 dont get me wrong its very useful and i hope you had a good time wit h the answer

What does the information on the chart show about union membership from 1993 to 2005?

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It was a gradual decrease
1) A- globalization
2) C- the military 
3) A- IBM
4) B- creating  a huge database and research tool 
5) D- it shows a gradual decrease

~GENERAL OUT~

In which situation does one country have an absolute advantage over another country?

A - workers earn higher wages
B - infrastructure is more advanced
C - government charges lower taxes
D - production costs are lower

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irt says i need to have at least 20 word sooooooo oooo o o o o o oo o o o o oo o o o o o

The upper class makes up about 25 percent of the population in the United States. True or False

Answers

Yes that is correct :)

The answer is actually False

What is budgeting time for a presentation

Answers

managing your time effectively in order to make your goals achievable it can be helpful in that that you're playing or your semester or your budget
Final answer:

Budgeting time for a presentation means planning and setting time for each part of your speech or lecture. This is crucial as audiences usually have a limited attention span. Tools like infographics or slides can help manage time better.

Explanation:

Budgeting time for a presentation refers to the process of planning and allocating time for each section of a presentation to ensure that the full content is delivered effectively and within a set time limit. This concept stems from the understanding that audiences typically have a limited attention span, roughly around 20 minutes for adult audiences, suggesting that the presenter should adjust the content and duration of their speech to keep viewers engaged.

This process begins with identifying the structure of your presentation, typically consisting of an introduction, three to five major supporting points, and a conclusion. From there, you should assign a specific amount of time to each section based on its importance and the depth of the contained information.

A useful tool in time budgeting is visual representation such as infographics or slides, as these can help both the presenter in maintaining track of their allocated time and framing their talking points, but it can also assist the audience to follow the presentation's progression.

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Which of the following is not true of a budget
A. Once you finish making your budget, you should not change it.
B. Budgets help you plan how to spend your money
C. A budget can include donations
D. Budgets include birth expenses and income

Answers

Once you finish making your budget, you should not change it is not true of a budget. As one can change or modify the budget after the finishing of the budget as well.

What is budget?

A budget is an estimate of revenue and expenses for a specific time period that is typically compiled and re-evaluated on a regular basis.

Budgets can be created for an individual, a group of people, a business, a government, or almost anything else that generates and spends money.

Thus, option A is correct.

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Final answer:

Option D is the answer. A budget is a flexible financial plan that helps track income and expenses. It can include donations but not birth expenses and income.

Explanation:

A budget is a financial plan that helps you track and manage your income and expenses. It is not true that once you finish making your budget, you should not change it. In fact, budgets should be flexible and adjusted as needed to adapt to changes in income or expenses.

A budget helps you plan how to spend your money by allocating funds to different categories, such as groceries, bills, transportation, entertainment, and savings.

A budget can include donations if you choose to allocate a portion of your income towards charitable contributions. It is a personal choice and can help you prioritize giving back.

However, budgets typically do not include birth expenses and income, as those are more specific to personal financial planning and not part of a general budgeting process.

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The ohio state leadership studies tried to discover the effects of particular behaviors on subordinates. they found two underlying dimensions of leadership:

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Discovering the effects of particular behaviors on subordinates, the Ohio State Studies identified that initiating structure and consideration are the two underlying dimensions of leadership. The Initiating structure is the degree in where the leaders are to be expected to outline and structure their employees and their parts to attain their goal. Consideration is the degree in where a leader's work relations are described by common trust, respect for the ideas of employees, and concern for their emotional state.

Someone browsing the internet sees an adwords display ad for laptop computers on a display network site, but doesn't click on it. two weeks later, she's interested in buying a laptop and decides to visit the site from the ad. she finds the site by doing a google search, goes directly to it, and buys a laptop. in this scenario, view–through conversions would be valuable for the advertiser because it could:

Answers

Implementing view-through conversions would be valuable for the advertiser because it could measure the number of conversions that are associated with ad impressions. View-through conversions would also be valuable as it would show the number of customers that sees an image or rich media advert, and then complete the conversion on your site.

Caleb bought a car for $6,900. he agreed on a five- year loan at a 5.4% interest rate. calculate what caleb's monthly payments will be.

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Monthly payment amount is given by;
P = A*D --- A = Amount borrowed = $6,900, D = factor
That is,

D = [R/12]/[1-(1+R/12)^-12n] --- where R = 5.4% = 0.054, n = 5 years

Substituting;
D = [0.054/12]/[1-(1+0.054/12)^-12*5] = 0.0191

Therefore, monthly payment amount P is;
P = A*D = 6900*0.0191 = $131.48


If contracting a vendor for multiple locations, particularly over a wide geographic area, the most important factor would be

Answers

Criteria in contracting a vendor are:

Years in business Ability to constantly supply products. Ability to supply complete requirements. Flexibility to allow changes in orders or product lines. Substantial catalogue of products. Has staff that can answer questions you may have. Testimonials and references. Sustainability and financial stability. Prices. Delivery times. Terms of business. Customer service.

The most important factor to consider in contracting a vendor for multiple locations would be delivery times. You need assurance that deliveries can be made where and when you want them.

Cyber terrorism is a handy battlefield for terrorists because it can strike directly at what target that bombs will not affect

Answers

Cyber terrorism is a handy battlefield for terrorists because it can strike directly at what target that bombs will not affect the economy of the enemy. Bombs do not drop down and have an affect on an economy the way cyber terrorism can get in and hack an organization. Depending on the harm of the attack it can hurt the economy greatly. 

Performance management differs from performance appraisal in that performance management _____.

Answers

Performance management differs from performance appraisal in that performance management describes the activities an organization does to improve their employee performancePerformance appraisal is the specific evolution a company will perform on their employees to see in what aspects of the employees job they perform effectively or ineffectively.

.

Final answer:

Performance management is a broader process that focuses on improving employee performance and achieving organizational goals, while performance appraisal is a specific method used to evaluate employee performance and provide feedback.

Explanation:

Performance management differs from performance appraisal in that performance management is a broader and more comprehensive process that focuses on improving employee performance and achieving organizational goals, while performance appraisal is a specific method used to evaluate employee performance and provide feedback.

Performance management involves setting clear performance expectations, continuously monitoring performance, providing coaching and feedback, and offering opportunities for development and improvement.

It includes various activities such as goal setting, performance evaluations, performance feedback, training and development, and reward and recognition programs.

what do you need before you can define long-term goals?

Short-term goals

An Action plan

A vision

A self-assessment

Answers

I think it would be action plan

Answer:

Beore thinking about a long-term goal we need A vision.

Explanation:

All right to understand this answer we need to analyze the context. If we need long term goals is to fulfill a vision. So that is how we need to act. First picture the scenario we want and then set long term goals. Then we create an action plan and set short term goals that are going to be decisive steps to achieve our vision. That way we structure the whole scheme with self-assessment. After explaining this process you may now understand the answer.

Real GDP is calculated using unchanging prices.

True

False

Answers

Real GDP is indeed calculated using unchanging prices from a base year, which is true. This method measures the economic output adjusted for inflation and is called constant dollars. Nominal GDP, on the other hand, is affected by price changes and does not reflect the real economic growth.

The statement that real GDP is calculated using unchanging prices is true. Real GDP is the total value of all final goods and services produced within an economy during a specific period, measured using the prices from a base year. This base year remains constant to account for inflation; therefore, the prices used do not change from year to year.

When we calculate real GDP, we take the quantities of various goods and services produced each year and multiply them by their prices in the base year. This practice gives us a measure of GDP that allows us to compare economic productivity over time without the distortions caused by changes in the price level. This is why real GDP figures are often referred to as being in constant dollars (e.g., '2005 Dollars' if 2005 is the base year), indicating that the values are adjusted to account for inflation since the base year.

The method helps economists and policymakers gauge the true growth of an economy by looking at changes in real production and avoiding misleading changes that could be due to inflation or deflation. In contrast, nominal GDP reflects the current market value of goods and services, which can be affected by changes in price and does not provide an accurate representation of real economic growth.

Rosalind, a seventeen-year-old, signs a contract to sell her car to street fleet used cars. the next day, rosalind tells street fleet that she's decided not to sell the car. rosalind is liable to street fleet for

Answers

For the answer to the question above, I believe that
rosalind is liable to the street fleet for "NOTHING"

There is no payment made or any sort of transaction that ends the deal and perhaps and I think the contract is voided because of her age.

Which marketing strategies are appropriate for nominal decision making? maintenance strategy and disrupt strategy capture strategy and intercept strategy preference strategy and acceptance strategy capture strategy and acceptance strategy maintenance strategy and intercept strategy?

Answers

Which marketing strategies are appropriate for nominal decision making? Maintenance strategy and disrupt strategy. When you have a maintenance strategy place, the organization is wanting to maintain their current market share of a product or brand. Because they want to maintain they are less likely to invest a lot of money and time in marketing especially in lower consuming markets. Disrupt strategy in marketing describes researching consumer trends and habits within the market place. They also hold interviews and focus groups to make sure they are offering the right products and services to their consumer base. 

Maintenance strategy and disrupt strategy. When you have a maintenance strategy in place, the organization is wanting to maintain its current market share of a product or brand. Because they want to maintain they are less likely to invest a lot of money and time in marketing, especially in lower-consuming markets. Disrupt strategy in marketing describes researching consumer trends and habits within the marketplace. They also hold interviews and focus groups to make sure they are offering the right products and services to their consumer base.

Jason, a manager, directs the efforts of others through tasks, rewards, and structures. he uses the __________ approach to leadership.

Answers

Jason, a manager, directs the efforts of others through tasks, rewards, and structures. he uses the transactional approach to leadership. Transactional leadership is a leadership style that focuses primarily on supervision, organization and performance. A transactional leader believes in rewarding and punishing their followers based on necessary actions. 
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