Question

15. Suppose demand, D, for a good is a linear function of its price per unit, P. When price is $20, demand 16. A certain firm posted an ad for a sales representative position paying S36,000 base salary plus a. What commission rate (as a percent of sales) must he earn to make $63,000 per year? is 100 units, and when price is $10, demand is 150 units. Find the demand function. commission. Based on his past experience, a salesman estimates he can generate S600,000 in sales b. Write an equation for his annual income as a function of his annual sales dollar volume. If the salesman wants to make $75,000 per year, by how much must he increase his annual sales volume (over the $600,000)? If the salesman wants to make $75,000 per year without increasing his sales volume, what commission rate must he receive? c. d. 17. The total cost C of producing x units of some commodity is a linear function. Records show that on one occasion, 100 units were made at a total cost of $200, and on another occasion, 150 units were made at a total cost of $275. Express the linear equation for total cost C in terms of the number of units x produced. 18. For most assets such as cars, stereo equipment, and furmiture, the value decreases, or depreciates, each year. If the value of an asset is assumed to decrease by a fixed percentage of the original value each year, it is referred to as straight line depreciation. a Suppose the value of a car which initially costs $20,000 depreciates by 10% of its original value b. Ifa $500 washing machine is completely depreciated after 10 years (straight line depreciation), each year. Find a formula for its value P(t after years. find a formula for its value W(t) after t years. 19. To maximize profits in a competitive market set price equal to marginal cost. But in a monopoly, you set marginal revenue equal to marginal cost Based on the given information, answer the following questions. Total Revenue-1000-10Q' Marginal Revenue = 100-20Q Total Cost= 20-10Q Marginal Cost 10 Note: Competitive Market: To maximize profits set Price Marginal Cost Monopoly Market: To maximize profits set Marginal Revenue-Marginal Cost a. What price do you charge if you are in a competitive market? b. What quantity do you produce if you are in a competitive market? c. What profits do you make n a competitive market! d. What price do you charge if you are in e. What quantity do you produce if vou are in a monopoly? f. What profits do you make ifyou are in a monopoly? g. Would vou rather be in a competitive market or monopoly? Why? a monopo

Answer 1

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