Demand function implies that firm marginal revenue function

Assignment Help Business Economics
Reference no: EM131094428

 A firm is considering entering a market where demand for its product is Q = 100 - P. This demand function implies that the firm's marginal revenue function is MR = 100 - 2Q. The firm's total cost of producing the product for that market is TC = 1000 + 20Q + Q^2 which indicates that its marginal cost function is MC = 20 + 2Q. Calculate the firm's profit and hence indicate whether or not the firm should enter the market. Also represent your findings on an appropriate graph. 

Reference no: EM131094428

Questions Cloud

The term consumer sovereignty means : How are products to be produced? Who is to decide what and how much to produce? Who is to receive the output of the system? The term "consumer sovereignty" means that: "How is the product to be distributed among people when commodities and services a..
Economic growth and productivity align with our core values : Describe what GDP measures and some of the limitations of GDP. What is the relationship between economic well-being and social well-being (i.e. happiness)? Can economic growth and productivity align with our Core Values?
Economic formulas are available to compute annual payments : Economic formulas are available to compute annual payments for loans. Suppose that you borrow an amount of money P and agree to repay it in n annual payments at an interest rate of i. Write an M-file to compute A. Test it with P=$100,000 and an inter..
What is the impact of opening trade on the real wage : Suppose when Russia opens to trade, it imports cars, a capital intensive good. (Consider the following Heckscher-Ohlin model.) According to the Heckscher-Ohlin model, is Russia capital-abundant or labor-abundant? Why? What is the impact of opening tr..
Demand function implies that firm marginal revenue function : A firm is considering entering a market where demand for its product is Q = 100 - P. This demand function implies that the firm's marginal revenue function is MR = 100 - 2Q. The firm's total cost of producing the product for that market is TC = 1000 ..
Find cournot equilibrium price and quanitiy : An electricity industry contains two generating firms, one of which has marginal cost= $2.50 and the other of $1.50; the demand curve is Quanity=40-4*price. Quanities are in MWH and price are in $/Mwh. Very low production cost! Find cournot Equilibri..
Three basic assumptions for production functions : A firm uses two inputs, X and Y and its production function is Q = radical(xy), where here we are using x and y to represent the quantities of the two inputs. Calculate the marginal products of X and Y. (b) Does the firm’s production function satisfy..
Analysis in new product management : Gap Analysis in NEW PRODUCT MANAGEMENT , explain what information can be determined from this analysis and what actions and strategies can typically be determined as a result of a comprehensive Gap Analysis,make reference to products and services you..
At the profit-maximizing level of output : At the profit-maximizing level of output, a purely competitive firm will: produce a quantity of output at which marginal cost is greater than price. produce the quantity of output at which marginal cost is minimized.

Reviews

Write a Review

 

Business Economics Questions & Answers

  What problem is that the professors also want to attend

The problem is that the professors also want to attend the party and enjoy the music with the students but they can only attend if they agree to serve beer to the students. Normally, professors do not like this. The marginal cost to them is 200.

  Unintended consequences of government obstruction

Explain how the “incidence” (i.e. “Who pays the tax”) of a per-unit tax on transactions depends upon the slopes of the supply curve and the demand curve. You may utilize graphical analysis to explain your answer as well. What function do private prop..

  What you would recommend based on this data

write down ten results from the polls that indicate something interesting about the relative strength of the parties. Write a letter to a presidential candidate explaining what you would recommend based on this data.

  What does this imply about the inflation differential

Mexican interest rates are normally substantially higher than U.S. interest rates. a. What does this imply about the inflation differential (Mexico inflation minus U.S. inflation), assuming that the peso interest rate is the same in both countries? D..

  Illustrate what philosophical principle did google manager

Illustrate what philosophical principle did Google's managers adopt when deciding that the benefits of operating in China outweighed the costs.

  Both short-run and long-run aggregate supply

The following events have their initial impact on which of the following: aggregate demand, short-run aggregate supply, long-run aggregate supply, or both short-run and long-run aggregate supply? Do the curves shift to the right or left?

  Several possible methods for determining the pay of ceos

Chief Executive Officer (CEO) Pay There are several possible methods for determining the pay of CEOs in large corporations.

  Accumulated principal plus interest

Illustrate how much will they have accumulated principal plus interest when they reach 65 years old. What is the moral of this situation.

  Federal reserve is considered independent

The Federal Reserve is considered independent because. National banks must take overnight loans from the Federal Reserve. One reason the Federal Reserve can conduct active monetary policy is that the dollar has a floating exchange rate.

  What are the negative effects of each

If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.

  Differences in long-run-short-run macroeconomic analysis

The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis. Graphically illustrate the long-run and short-run aggregate supply curves. Be sure to label the axes.

  In a study available in 1980 b b gibson estimated the

in a study available in 1980 b. b. gibson estimated the subsequent price and income elasticity of demand for six types

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