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You will need to login to my account athttps://campus2.purdueglobal.edu/home Username: GabrealWhitten1Password: Monarch6013Click on Microeconmics, then Content, then Course Resources, and digital...

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Username: GabrealWhitten1Password: Monarch6013Click on Microeconmics, then Content, then Course Resources, and digital book. Once clicked on book find the chapter of the assignment list at the top of the attached document.
Answered Same Day Mar 05, 2021

Solution

Preeta answered on Mar 08 2021
133 Votes
Questions:
1. a. With the given data the following calculations have been done. Total revenue has been calculated by multiplying suggested donation per DVD request with anticipated number of DVD requests. Marginal Revenue has been calculated by dividing change in total revenue with the change in the anticipated number of quantity. Marginal cost was given from which total cost has been calculated by multiplying the value with the anticipated selling quantity. At last profit has been calculated by deducting total cost from total revenue.
    (A)
Suggested Donation per DVD Request
    (B)
Anticipated Number of DVD Requests
    (C=A*B)
Total Revenue
    (Change in C/ Change in B)
Marginal Revenue
    (5.56*B)
Total Cost
    Profit
    $19.00
    0
    0
    0
    0
    0
    $15.00
    2
    30.00
    15
    11.12
    18.88
    $9.50
    5
    47.50
    5.83
    27.8
    19.70
    $7.75
    9
    69.75
    5.46
    50.04
    19.71
    $3.00
    15
    45.00
    4.13
    83.4
    (38.40)
    $0.00
    24
    0
    5
    133.44
    (133.44)
. If the President wants to provide videos at the point of maximum donation that is highest total revenue, then $7.75 is the right selling price level where $69.75 can be generated as the total revenue. At this price level, 9 people will get the DVD. At this price point maximum profit can be generated but the video will not reach a large number of people.
c. If the Education Outreach Committee wants to provide the DVD at that level where it can reach the maximum number of people, then $0 is the right selling price level where 24 people will take the video. At this price level, loss of $ 133.44 will be incu
ed since no revenue will be generated but there will be cost of making the DVDs. At this price point there will be loss but the video will reach a large number of people.
d. If the Treasurer of the GSTCG wants to provide videos to that level where maximum efficiency is possible that is where the marginal revenue will be same as marginal...
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