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 158 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
:D TYSM

tandmlomax84

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

The different types of competition in nature. The different types of competition in nature.
Discipline-specific training can take years to perfect. Discipline-specific training can take years to perfect.
Jane Goodall first observed Gombe chimpanzees chewing leaves, then dipping the chewed-up “wadge” int Jane Goodall first observed Gombe chimpanzees chewing leaves, then dipping the chewed-up “wadge” int
Visual Elements of Pictorial Expression: A. Carpet Page from the Lindisfarne Gospels Visual Elements of Pictorial Expression: A. Carpet Page from the Lindisfarne Gospels
Human Diseases Associated with Copy Number Variants Human Diseases Associated with Copy Number Variants
If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ... If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ...
Video: Secretin (inhibiting gastric acid secretion), Cholecystokinin (fat digestion) & Cholecystokinin

For a complete list of videos, visit our video library