Question

Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $600 each. To sell...

Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $600 each. To sell 4 drivers, Bubba Golf must lower the price to $580 each. The marginal revenue of the fourth club is:
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution-

Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $600 each. To sell 4 drivers, Bubba Golf must lower the price to $580 each. The marginal revenue of the fourth club is: $520.

Reason-

Marginal Revenue = Change in Total Revenue / Change in output

Total Revenue of 3rd club = 3 x $600 = $1800

Total Revenue of 4th club = 4 x $580 = $2320

MR = ($1800 - $2320) / (3- 4)

= -$520 / -1

= $520

Therefore, Marginal revenue of the 4th club is $520.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell...
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $700 per set and have a variable cost of $340 per set. The company has spent $150,000 for a marketing study that determined the company will sell 46,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,000 sets of its high-priced clubs. The high-priced clubs sell at $1,100 and have variable costs of...
3. McGilla Golf has decided to sell a new line of golf clubs. The clubs will...
3. McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $700 per set and have a variable cost of $320 per set. The company has spent $150,000 for a marketing study that determined the company will sell 48,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 11,000 sets of its high-priced clubs. The high-priced clubs sell at $1,100 and have variable costs...
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell...
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $845 per set and have a variable cost of $405 per set. The company has spent $300,000 for a marketing study that determined the company will sell 69,400 sets per year for seven years. The marketing study also determined that the company will lose sales of 13,000 sets of its high-priced clubs. The high-priced clubs sell at $1,215 and have variable costs of...
A golf club manufacturer claims that golfers can lower their scores by using the manufacturer's newly...
A golf club manufacturer claims that golfers can lower their scores by using the manufacturer's newly designed golf clubs. Eight golfers are randomly selected and each is asked to give his or her most recent score. After using the new clubs for one month, the golfers are asked again to give their most recent score. The scores for each golfer are given in the table below. Is there enough evidence to support the manufacturer's claim? Let d=(golf score after using...
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell...
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $820 per set and have a variable cost of $420 per set. The company has spent $152,000 for a marketing study that determined the company will sell 56,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,700 sets of its high-priced clubs. The high-priced clubs sell at $1,120 and have variable costs of...
A golf club manufacturer claims that golfers can lower their scores by using the manufacturer's newly...
A golf club manufacturer claims that golfers can lower their scores by using the manufacturer's newly designed golf clubs. Eight golfers are randomly selected and each is asked to give his or her most recent score. After using the new clubs for one month, the golfers are asked again to give their most recent score. The scores for each golfer are given in the table below. Is there enough evidence to support the manufacturer's claim? Let d=(golf score after using...
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell...
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $770 per set and have a variable cost of $370 per set. The company has spent $147,000 for a marketing study that determined the company will sell 59,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,200 sets of its high-priced clubs. The high-priced clubs sell at $1,070 and have variable costs of...
McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $1,040...
McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $1,040 per set and have a variable cost of $470 per set. The company has spent $167,500 for a marketing study that determined the company will sell 52,500 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,900 sets of its high-priced clubs. The high-priced clubs sell at $1,540 and have variable costs of $670. The...
McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $960...
McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $960 per set and have a variable cost of $430 per set. The company has spent $147,500 for a marketing study that determined the company will sell 48,500 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,100 sets of its high-priced clubs. The high-priced clubs sell at $1,460 and have variable costs of $590. The...
A golf club manufacturer claims that golfers can lower their scores by using the manufacturer's newly...
A golf club manufacturer claims that golfers can lower their scores by using the manufacturer's newly designed golf clubs. Eight golfers are randomly selected and each is asked to give his or her most recent score. After using the new clubs for one month, the golfers are asked again to give their most recent score. The scores for each golfer are given in the table below. Is there enough evidence to support the manufacturer's claim? Let d=(golf score after using...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT