Consider a firm that produces two goods, X and Y. Suppose th…
Consider a firm that produces two goods, X and Y. Suppose that the price of good X changes by 1%. If the firm earns $4,000 in revenue from good X, $2,000 in revenue from good Y, the price elasticity of demand for good X is -1.5 and the cross price elasticity of demand for good Y with respect the the price of good X is -4, how much will the firm’s revenue change? Enter your answer as a number only. Do not use a dollar sign.
Read DetailsConsider the following table showing the revenue and cost in…
Consider the following table showing the revenue and cost information for a firm. Q P Total Revenue Total Cost 0 50 0 5 1 45 45 10 2 40 80 20 3 35 105 32 4 30 120 47 5 25 125 66 6 20 120 90 What is the profit-maximizing quantity of output for this firm to produce?
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