Ask Question
BusinessBusiness
19 March, 07:00

Suppose your elasticity of demand for your parking lot spaces is - 2, and price is $8 per day. if your mc is zero, and your capacity is 80% full at 9

a. m. over the last month, are you optimizing?

+1
Answers (1)
  1. 19 March, 07:52
    0
    The answer to the question above is "no, the business is not optimizing" according to the information shown on the question above. In this situation, we have the greater marginal revenue (4=8 * (1-1/2)) than the marginal cost (0) and the business is not in its full capacity. The parking lot business can increase its marginal cost to achieve its full capacity to gain more profit.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose your elasticity of demand for your parking lot spaces is - 2, and price is $8 per day. if your mc is zero, and your capacity is 80% ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
5. For a diversified firm, a corporate-level strategy is concerned with: a) operating each individual business under the corporate umbrella. b) determining how each functional department of the firm will operate.
Answers (1)
Why might network externalities cause a new cable provider to be unsuccessful when it tries to enter the market?
Answers (1)
As a foreign subsidiary matures: a) The local HR unit's responsibilities for planning, training, and compensation broaden. b) The responsibilities of planning, training, and compensation narrow.
Answers (1)
Novak Corp. purchased land for a new parking lot for $140000. The paving cost $176000 and the lights to illuminate the new parking area cost $40000. Which of the following statements is true with respect to these additions? a.
Answers (1)
Which of the following is TRUE regarding the persuasive business message? A. The persuasive business message generally relies more heavily on logical than on emotional appeal. B.
Answers (1)
New Questions in Business
Which type of appraisal includes judgment about the degree of potential harm or threat to well-being that a stressor might entail?
Answers (1)
Grand River Corporation reported taxable income of $500,000 in 20X3 and paid federal income taxes of $170,000.
Answers (1)
Reyes Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $284,590, budgeted machine-hours were 19,100. Actual factory overhead was $243,830, actual machine-hours were 17,750.
Answers (1)
You are planning your retirement in 10 years. You currently have $162,000 in a bond account and $602,000 in a stock account. You plan to add $7,800 per year at the end of each of the next 10 years to your bond account.
Answers (1)
A letter of credit: a. Ensures a company that funds will be available when needed b. Is analogous to a credit card that companies can draw on as needed c. Is a representation that a company has a high credit rating d.
Answers (1)
Home » Business » Suppose your elasticity of demand for your parking lot spaces is - 2, and price is $8 per day. if your mc is zero, and your capacity is 80% full at 9 a. m. over the last month, are you optimizing?
Sign Up Forgot Password?