Homework Answers
Add Answer to:
Question 22: Profit maximization for a monopolist Suppose you are the manager for Xclusive Tours, a...
Profit maximization: Suppose you have a firm that, because it has some market power, faces a...
Profit maximization: Suppose you have a firm that, because it has some market power, faces a market demand curve of P ( Q ) = 25 − 1.1 Q. Your Total Cost function is the same as before: T C ( Q ) = 34 + 1.2 Q + 0.8 Q 2 , where Q is your production quantity. What is your profit-maximizing output Q*, to the nearest 0.1 unit?
You are indifferent between spending one hour commuting by bus (xB) or one hour by car...
You are indifferent between spending one hour commuting by bus (xB) or one hour by car (xC). However, the bus averages 30mph (due to frequent stops), while the car averages 60mph. Your utility is expressed in miles commuted, and depends on the hours spent in either vehicle: u = 30xB + 60xC. Draw the indifference curves for u=900, u’=1200 and u’’=1500. A bus ticket costs $3 for a 30 minute ride, so the price for 1 hour of bus is...
Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. T
. Profit maximization and loss minimizationBYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market.Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for...
Suppose you are the manager of Mountain Enterprises, a firm that holds a patent that makes...
Suppose you are the manager of Mountain Enterprises, a firm that holds a patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for bubble memory chips are Q = 25 - 0.5P; C = 50 + 5Q. a. What is the firm's inverse demand function? b. What is the firm's marginal revenue when producing four units of output? c. What are...
For question 2, please draw the graph. 4) Suppose Microsoft computers has a cost curve equal...
For question 2, please draw the graph.
4) Suppose Microsoft computers has a cost curve equal to C = 150Q and faces a demand curve equal to p = 550 – 22. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be...
Chapter 11 1. You are a self-employed profit-maximization consultant specializing in monopolies. Five single-price, profit-maximizing monopolies...
Chapter 11 1. You are a self-employed profit-maximization consultant specializing in monopolies. Five single-price, profit-maximizing monopolies are currently seeking your advice, and al- though the information they have supplied to you is incomplete, your expert knowledge allows you to go back and make a definite recommendation in each case. Select one of the following recommendations for each firm in the short run: a. Remain at the current output level. b. Increase output. c. Reduce output. d. Shut down. e. Go...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC = q +35 MR = 560 + 22q-q? Where q is the quantity produced and the firm's break-even is 5 units per week You are Required to 1. determine the total cost and the total revenue function in terms of q. (6 marks) II. estimate the output at which profit is maximize (6 marks) III. calculate...
Please solve and show steps Question 1 Pleasesho l laculations to get cr) a. Suppose you...
Please solve and show steps
Question 1 Pleasesho l laculations to get cr) a. Suppose you are the manager of a watchmaking firm operating in competitive market. The price of the watches from the competitive market is p. The firm's cost function is given by TC 450150+202.Find equations for the marginal cost curve, average cost curve, average variable cost curve and the supply function of this firm (all the fixed costs are sunk); draw the supply function clearly showing the...
question (e) and question (f) 6. Suppose you have a job analyzing a perfectly competitive market. The aggregate...
question (e) and question (f)
6. Suppose you have a job analyzing a perfectly competitive market. The aggregate demand is (p) = 98 - and the cost function for the firms is C(q) = 772 +35. Suppose all firms use the same cost function. (a) Setup and solve the profit maximization problem over quantity. Write the quantity an individual firm will produce as a function of the sale price. (3 points) (b) Solve for the price, quantity, and profits for...
For this project, you are tasked with creating a text-based, basic String processing program that performs...
For this project, you are tasked with creating a text-based, basic String processing program that performs basic search on a block of text inputted into your program from an external .txt file. After greeting your end user for a program description, your program should prompt the end user to enter a .txt input filename from which to read the block of text to analyze. Then, prompt the end user for a search String. Next, prompt the end user for the...
For question 2, please draw the graph.
4) Suppose Microsoft computers has a cost curve equal to C = 150Q and faces a demand curve equal to p = 550 – 22. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be...
Chapter 11 1. You are a self-employed profit-maximization consultant specializing in monopolies. Five single-price, profit-maximizing monopolies are currently seeking your advice, and al- though the information they have supplied to you is incomplete, your expert knowledge allows you to go back and make a definite recommendation in each case. Select one of the following recommendations for each firm in the short run: a. Remain at the current output level. b. Increase output. c. Reduce output. d. Shut down. e. Go...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC = q +35 MR = 560 + 22q-q? Where q is the quantity produced and the firm's break-even is 5 units per week You are Required to 1. determine the total cost and the total revenue function in terms of q. (6 marks) II. estimate the output at which profit is maximize (6 marks) III. calculate...
Please solve and show steps
Question 1 Pleasesho l laculations to get cr) a. Suppose you are the manager of a watchmaking firm operating in competitive market. The price of the watches from the competitive market is p. The firm's cost function is given by TC 450150+202.Find equations for the marginal cost curve, average cost curve, average variable cost curve and the supply function of this firm (all the fixed costs are sunk); draw the supply function clearly showing the...
question (e) and question (f)
6. Suppose you have a job analyzing a perfectly competitive market. The aggregate demand is (p) = 98 - and the cost function for the firms is C(q) = 772 +35. Suppose all firms use the same cost function. (a) Setup and solve the profit maximization problem over quantity. Write the quantity an individual firm will produce as a function of the sale price. (3 points) (b) Solve for the price, quantity, and profits for...
Most questions answered within 3 hours.
-
Solve it in Python
4. An alternade is a word in which its letters, taken
alternatively...
asked 4 minutes ago -
Assume that the company sells two products, X and Y, with
contribution margins per unit of...
asked 3 minutes ago -
The International Nanny Association (INA) reports that in a
sample of 928 in- home child care...
asked 35 minutes ago -
Consider the following data:
x
−6−6
−5−5
−4−4
−3−3
−2−2
P(X=x)P(X=x)
0.20.2
0.20.2
0.20.2
0.20.2
0.20.2...
asked 17 minutes ago -
A uniform disk with mass 35.2 kg and radius 0.230 mis pivoted at
its center about...
asked 4 minutes ago -
Gustin Corp manufactures, sells, and leases medical equipment.
Gustin Corp agrees to lease 3 CAT scanners,...
asked 9 minutes ago -
Describe the origin of the cardiac contraction signal and the
pathway it follows through the heart.
asked 18 minutes ago -
Find the area under the standard normal curve to the left of
z
= -1.22 ....
asked 28 minutes ago -
an afro-carribean family is seeking psychotherapeutic help
because they are concerned about their son, Trevor, is...
asked 29 minutes ago -
In Wealth of Nations, how does Smith introduce the reader to the
central concept of the...
asked 31 minutes ago -
Assess the Strategy-Evaluation Framework, including reviewing
bases of strategy, measuring organizational performance, and taking
corrective actions....
asked 35 minutes ago -
13. David and Julie have two children, ages 18 and 10. Their
modified AGI is $120,000....
asked 54 minutes ago