Business, 05.11.2020 18:30 yoogirlchloee

Ed Scahill has acquired a monopoly on the production of baseballs (don’t ask how), and faces the demand and cost situation given in the following table: P Q Revenue MR TC MC
20 15000 330000
19 20000 365000
18 25000 405000
17 30000 450000
16 35000 500000
15 40000 555000
a. Fill in the remaining values in the table.
b. If Ed wants to maximize profits, what price should he charge and how many baseballs should he sell? How much profit will he make?
c. Suppose the government imposes a tax of $50,000 per week on baseball production. Now what price should Ed charge, how many baseballs should he sell, and what will his profits be?

Answers: 2

Show answers

Answers

Answer from: rafa53

a. See part a of the attached excel file for the filling of the remaining values.

b. Ed should sell at the price of $16 and he should sell 35,000 baseballs. Therefore, his profit will be $60,000.

c. Ed should still sell at the price of $16 and he should sell 35,000 baseballs. But, his profit will be $10,000.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation to the answer is now given as follows:

a. Fill in the remaining values in the table.

Note: See part a of the attached excel file for the filling of the remaining values.

In the attached excel file, the following formula is used.

Revenue = P * Q

MR = Current MR – Previous MR

MC = Current MC – Previous MC

b. If Ed wants to maximize profits, what price should he charge and how many baseballs should he sell? How much profit will he make?

Ed will maximize profit where his MR = MC.

In the part a of the attached excel file, MR = MC = 50,000 when P = 16, Q = 35,000, Revenue = 560,000, and TC = 500,00

Therefore, Ed should sell at the price of $16 and he should sell 35,000 baseballs.

Also, his profit at this point can be calculated as follows:

Profit = Revenue – TC = 560,000 – 500,000 = 60,000

Therefore, his profit will be $60,000.

c. Suppose the government imposes a tax of $50,000 per week on baseball production. Now what price should Ed charge, how many baseballs should he sell, and what will his profits be?

Note: See part c of the attached excel file the new table showing the effect of $50,000 tax per week.

The imposition of $50,000 tax per week will make the total cost (TC) of Ed to increase by $50,000.

Therefore, we add $50,000 to each of the TC as shown in the part c of the attached excel file.

Just like before, Ed will maximize profit where his MR = MC.

In the part c of attached excel file, MR = MC = 50,000 when P = 16, Q = 35,000, Revenue = 560,000, and TC = 550,00.

Therefore, Ed should still sell at the price of $16 and he should sell 35,000 baseballs.

Also, his profit at this point can be calculated as follows:

Profit = Revenue – TC = 560,000 – 550,000 = 10,000

Therefore, his profit will be $10,000.

Ed Scahill has acquired a monopoly on the production of baseballs (don’t ask how), and faces the dem

Answer from: Quest

Ithinks it’s a and d

Answer from: Quest

You can go to the edit profile.

Other questions on the subject: Business

Business, 21.06.2019 21:00, keke1871

While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. you can't spare the time to pick up the pizza and must have it delivered. "pick-up-sticks" offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). "fred's" offers the round, deep-dish sasquatch, which is 20 inches in diameter. it is 1-3/4 inches thick, includes two toppings, and costs $17.25 plus 5% sales tax and free delivery. 1. what is the problem in this situation? state it in an explicit and precise manner. 2. systematically apply the seven principles of engineering economy (pp. 3-6) to the problem you have defined in part (a). 3. assuming that your common unit of measure is dollars (i. e., cost), what is the better value for getting a pizza based on the criterion of minimizing cost per unit of volume? 4. what other criteria might be used to select which pizza to purchase?

Answers: 3

continue

Business, 22.06.2019 08:10, toxsicity

Exercise 15-7 crawford corporation incurred the following transactions. 1. purchased raw materials on account $53,000. 2. raw materials of $45,200 were requisitioned to the factory. an analysis of the materials requisition slips indicated that $9,400 was classified as indirect materials. 3. factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. 4. time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. manufacturing overhead costs incurred on account were $81,700. 6. depreciation on the company’s office building was $8,100. 7. manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. goods costing $89,400 were completed and transferred to finished goods. 9. finished goods costing $76,000 to manufacture were sold on account for $105,100. journalize the transactions. (credit account titles are automatically indented when amount is entered. do not indent manually.) no. account titles and explanation debit credit (1) (2) (3) (4) (5) (6) (7) (8) (9) (to record the sale) (to record the cost of the sale) click if you would like to show work for this question: open show work

Answers: 1

continue

Business, 22.06.2019 08:20, Svetakotok

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Answers: 2

continue

Business, 22.06.2019 12:50, cece4874

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u. s. treasury yield curve can take. check all that apply.

Answers: 2

continue

You know the right answer?

Ed Scahill has acquired a monopoly on the production of baseballs (don’t ask how), and faces the dem...