7 Business Economics Questions
QUESTION 1
PED= ==0.375
Some of the factors that could have contributed to reduction in attendance include a decrease in income, a decrease in population or change in preferences.
The theatre should further increase the price of the tickets so as to increase revenue.
The optimal price of the theatre tickets would be the price at which the marginal revenue is equal to the marginal cost.
QUESTION 3
Profit=$25,000, Q=10,000 books
Cost=$0.50
Cost of developing e-books=$100,000
Profit=TR-TC
25000=TR-100000+(0.50*10000)
25000=TR-105000
TR=25000+105000
TR=130,000
TR=P*Q
P=TR/Q=130000/10000
P=$13
QUESTION 5
P = 20 – 4Q
MC=$4
TR=(20 – 4Q)Q
TR=20Q-4Q2
MR=20-8Q
MR=MC
20-8Q=4
Q=2
P=20 – 4*2
P=12