Question

QUESTION 1 The marketing department for a soaked that manufactures Mrola handphones has obdurate the following bring function for their p[roducts: Qm = 2550 0.25 Pm 0.82 Pc + 0.04 Y + 0.02A Where: Qm= line number of the firms Mrola handphones change monthly. Pm= the scathe of the firms Mrola handphones Pc = the price of other related product Y = average family income A= periodical advertising dollars spent. Given Pm = RM cc0, Pc = RM1500, Y = RM5000, and A = RM150000 a) Derive the demand Curve exercise for Mrola handphones. Qm = 2550 0.25(2000) 0.82(1500) + 0.04(5000) + 0.02(15000) = 2550 500 1230 + 200 + three hundred = 1320. A=2550 0.82(1500) + 0.04(5000) + 0.02(15000) = 2550 1230 + 200 + 300 =1820. Qm = A bPm Qm = 1820 0.25Pm b) How much is Mrola handphones sold periodic? RM 1320 for a month 1320 / 4 = RM 330 unit c) If th e firm wants to maximize primitive revenue, qualify the number of Mrola handphones that should be produced and at what price to sell. Q = 1820 0.25P 0.25P = 1820 Q P = 1820 Q 0.25 P = 7280 4Q TR = (7280 4Q) X Q = 7280Q 4Q2 dTR = 7280Q 4Q2 dQ = 7280 8Q 7280 8Q = 0 7280 = 8Q Q = 7280 / 8 Q = 910 P = 7280 4(910) = 7280 3640 = RM 3640 d) Calculate the price stretchity of demand is the demand elastic or inelastic? If the firm decreases the price, what pull up lay on the line be the effect on total revenue? Explain. ?p = - 0.25 X 2000 / 1320 = - 0.38 (inelastic) *If the firm decreases the price , the quantity of the demand will increase. ! thus the firm will not be able to cessation their total revenue. e) Determined the income...If you want to get a extensive essay, order it on our website: OrderCustomPaper.com

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