Calculate firms inverse demand function-maximized profit

Assignment Help Business Economics
Reference no: EM13896675

The demand function for a firm’s product is Q(P) = 50!P/10. The firm’s cost of production is

C(Q) = Q3!20Q2+125Q. The firm’s problem is to choose the value of Q$0 that maximizes its profit. You may occasionally find an irrational number and in those cases simplify your answer as much as possible.

For this part only, change the demand function by assuming that demand (at any given price) is half of what it was before. In this new situation, calculate the firm’s inverse demand function, profit-maximizing point, and maximized profit.

(l) For this part only, suppose that the problem is to maximize revenue instead of profit. Does this problem satisfy the global SOC? Find all points (if any) that satisfy the FOC. Calculate the revenue-maximizing price and quantity. (Justify your answer carefully.) Calculate the firm’s maximized revenue. How much profit does the firm sacrifice by choosing to maximize revenue instead of profit?

Reference no: EM13896675

After the change in the exchange rate

Let the exchange rate be defined as the number of dollars per Japanese yen. Assume there is an increase in U.S. interest rates relative to that of Japan. Would this event caus

What happens in long-run when the money supply increases

What is the equation of exchange and velocity of money? Explain the quantity theory of money and its relationship to NOMINAL GDP. What happens in the long-run when the money s

Compute the total cost for basket

Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. Compute the total cost for this b

What is the natural rate of unemployment for country

A country with a civilian population of 100,000 (all over age 16) has 80,000 employed and 10,000 unemployed persons. Of the unemployed, 2,000 are frictionally unemployed and a

Explain how that influences marginal benefits

Provide an example for each about decision-making, interaction and workings of economy. Explain how that influences marginal benefits and marginal costs associated with decisi

How large a tax cut would be needed to achieve same increase

How large a tax cut would be needed to achieve the same increase in aggregate demand? Determine one possible combination of government spending increases and tax increases tha

Explain the agency relationship that exists on social media

Explain the agency relationship that exists on social media sites between the social media provider and businesses that utilize the site for advertising.

Excessive current account deficit

U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal an


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd