The question has been answered below.
Let q* = 9(P,v,w) be the solution to the firm's profit maximization problem max P.9-TC(q,v,w) OMC(q,v,w)...
Let: TC=4+6q+.4q^2 P=20-.04q Using SOLVER, find the profit max P and Q using a single spreadsheet showing work. please display functions and formulas
TR P Q TC MC ATC profit 120 120 1 130 / 130 -10 satisfies 180 90 2 150 20 75 30 fair 180 60 3 180 30 60 0 profit max 160 40 4 220 40 55 -60 prod eff 150 30 5 270 50 54 -120 alloc eff 120 20 6 330 60 55 -210 nothing satisfied Under discrimination Q = 4, so TC = 220 while TR equals 120 + 90 + 40+ 60 = 310 and...
Suppose that a firm's demand curve is given by P 14 0.5 Q What is the profit-maximizing price if total cost is TC 3.Q?
. Suppose TC 10+0.12, MC0.2q. If p 10, the firm's profit on the perfectly competitive market in the short run will be (a) 240 (b) 250 (c) 260 (d) -10 because the firm will shut down. (e) None of the above 4. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is TC = 100-5q+q2, MC = 2q-5, and the demand function is Q = 55-p (inverse demand is p 55 Q). What price should DD...
1. Profit Maximization Problem. (Similar to Ch.1 Question 9 from the book) An analyst discovers the following about the demand for attendance at a local football team's games: P- 180-4A where P is the ticket price, measured in dollars, and A is their attendance measured in thousands of fans. Assume that marginal cost is $20, and total cost is 20A. 1. Suppose the goal of the analyst is to maximize profit for the team. Set up the profit maximization problem...
What is this firm's profit? P, MC, AC MC ATC P=100 25 20-- 9 q*=30
TR - (100-298 1004.22 9= 25 Check q=35 T=TR -TC MR = 100.49 T= (193.35)-(500+560+122) = 970 MAX price = 93 MAX Quantity =35 Profit = 970 me > MR 27.4V 9-15 4) A firm has a demand curve of q = 400 - 4p. They compute their variable costs to be, vo - 40q+.25q'. They have a fixed cost associated with the business of $10,000. What is the firm's profit maximizing price and quantity? What is their profit? Be...
Problem 5. This problem asks you to find the supply function of a firm that only uses one input (z) to produce one output (q). In addition, it highlights how the choices we make to represent an economic situation can influence the conclusions we arrive at. Suppose there is a firm operating in a competitive environment. The firm has a technology given by f(z)Az, where z 20 is the amount of labor the firm hires at a wage of w...
Problem 4. Let V be a vector space and let U and W be two subspaces of V. Let (1) Prove that if U g W and W g U then UUW is not a subspace of V 2) Give an ezample of V, U and W such that U W andW ZU. Explicitly verify the implication of the statement in part (1) (3) Prove that UUW is a subspace of V if and only ifUCW or W CU.' (4)...
9. Consider the utility maximization problem max x + y s.t. px + y =m, where the constants p, 9, and m are positive, and the constant a € (0,1). (a) Find the demand functions, x* (p, m) and y* (p, m). (b) Find the partial derivatives of the demand functions w.r.t. p and m, and check their signs. (c) How does the optimal expenditure on the x good vary with p?8 (d) Put a = 1/2. What are the...