Elasticity

Demand for cassettes can be characterized by the following point elasticities:price elasticity =-2,cross price elasticity with aaa batteries is -1.5, and income elasticity =3. please explain the following statement. a. A 3% price reduction in cassette players would be necessary to overcome the effects of a 2% decline in income. (Please show calculations)

Elasticity

Demand for cassette players can be characterized by the following:price elasticity=-2, cross-price elasticity with AAA batteries=-1.5, and income elasticity =3. Indicate if True or False and why: a.A price increase for cassette players will decrease both the number of units demanded and the total revenue of sellers. b. The cross price elasticity indicates that a 2%reduction in price of cassettes will cause a3%increase in battery demand. c.demand for cassette players is price elastic and they are cyclical normal goods. d. falling battery prices will definitely increase revenues received by sellers of both cassette players and batteries.

Competitive Firms

If an imperfectly competitive firm is able to produce at any output level, then the price and quantity which maximize total revenue, given the demand schedule attached are...? (see attached)

Competitive firms

Suppose an imperfect competitor faces the demand schedule attached and its marginal cost is constant at $2. If the firm is able to produce any output level, then it maximizes profits at (see attachment)

Marginal Revenue - Competitive Firms #34

If a firm under imperfect competition could find buyers for 9 units at a price of $5 (no excess quantity demanded), and if the marginal revenue due to the tenth unit were $2, the highest price at which a firm could find buyers for 10 units must be: