Business

The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Supposed a manufacturer estimates its marginal costs at $1.00per pack, its own price elasticity at -2, and sets its price at $2.00. The company’s settlement obligations are expected to raise its average total cost per pack by about $.60. What effect will this have on its optimal price?

  1. 👍 0
  2. 👎 0
  3. 👁 72
asked by Ariana
  1. In 200-300 words, address the challenges and opportunities managers face in culturally diverse and global organizations. Apply concepts/terms from Chapter 3 of your textbook.

    1. 👍 0
    2. 👎 0
    posted by Graca
  2. Do your own work.

    1. 👍 0
    2. 👎 0
    posted by T-Bone

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on

    asked by Joe on May 16, 2010
  2. Texas Government

    The sunset review process has a. eliminated a few government agencies. b. dramatically reduced the number of state government agencies. c. created even more state government agencies. d. decreased the influence of interest groups

    asked by HM on November 12, 2011
  3. buisness

    Industry downsizing has been a major part of the corporate world, even government agencies are downsizing. GovernmentExecutive website "covers the business of the federal government and its huge departments and agencies - dozens

    asked by Keith on November 18, 2010
  4. Downsizing and Fixed Costs

    Industry downsizing has been a major part of the corporate world, even government agencies are downsizing. GovernmentExecutive website "covers the business of the federal government and its huge departments and agencies - dozens

    asked by George on November 18, 2010
  5. U.S. History (Ms. Sue)

    1. How did mobilizing the economy help end the Depression? A: Mobilizing the economy helped end the Depression as it created almost 19 million new jobs and nearly doubled the average family's income. 2. What changes did American

    asked by Victoria on January 4, 2016
  6. SOC 320 Public policies and Social services

    . Which of the following was added to the procedural requirements of the EPA under the Reagan administration? (Points : 1) Use of cost-benefit analysis Review using the precautionary principle Inclusion of industry representation

    asked by lisa on October 25, 2015
  7. Economics

    The big three manufactuers in the U.S. are currently in financial trouble. General Motors and Chrysle are filing for bankruptcy. Chrysler is being take over by Fiat. GM is giving ownership to the government in return for a $20

    asked by Ashley on August 1, 2010
  8. History

    What action did President Bush take to make the Office of Homeland Security effective? He tried to convince Congress to go to war. None of these answers He decided to commence all of the other public safety agencies and only use

    asked by Chloe on June 17, 2018
  9. Social Work

    Who holds the power for creating social change within the social service industry? Is it politicians, the agencies, or the populations the agencies serve?

    asked by Linda on July 27, 2009
  10. us history

    which of the following best describes an example of how Progressives worked? a) they worked to free businesses from unnecessary government restraint. b) they worked to make government more responsive to people. c) they allowed

    asked by tabby on December 14, 2006

More Similar Questions