This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Jane's Copy Services is in perfect competition. Jane currently charges 10 cents per page, which is ... (Read 77 times)

beccaep

  • Hero Member
  • *****
  • Posts: 535
on: Jun 29, 2018
Jane's Copy Services is in perfect competition. Jane currently charges 10 cents per page, which is the going market price.
 
  Jane thinks that she can increase her profit if she lowers her price to 8 cents per page to increase the demand for her service. Is Jane right? Why or why not?

Question 2

When would a risk averse individual not insure a risky event?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mariahkathleeen

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

If Jane lowers her price, her profit will not increase. As a perfectly competitive firm, Jane can sell as much of her service as she wants at the going market price. And to maximize her profit, she should choose the quantity at which her marginal cost equals the market price. If Jane lowers the price, her total revenue, and hence profit, will fall.

Answer to Question 2

Risk averse individuals are always willing to pay more than the minimum cost of insurance up to a point. If the insurance is priced above the maximum price the individual is willing to pay, he or she will not buy the insurance.


beccaep

  • Member
  • Posts: 535
Reply 2 on: Jun 29, 2018
Excellent

amcvicar

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

The average adult has about 21 square feet of skin.

Table of Ionic Charges Table of Ionic Charges
Paleoanthropologist Jane Moore maps sites at Kanapoi, Kenya Paleoanthropologist Jane Moore maps sites at Kanapoi, Kenya
Jacob Lawrence, You can buy bootleg whiskey for twenty-five cents a quart, from the Harlem Series. Jacob Lawrence, You can buy bootleg whiskey for twenty-five cents a quart, from the Harlem Series.
One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ... One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ...
Carbon copy of her surrogate mother Carbon copy of her surrogate mother
Copy-number variants Copy-number variants
Video: Factors that affect conduction rates (myelination, axon diameter & temperature)

For a complete list of videos, visit our video library