Find the equation representing total revenue as function
Course:- Business Economics
Reference No.:- EM131103609

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

Suppose the Calloway Cab Company has an exclusive franchise to provide limousine service between the airport and center city. Its total cost is TC = 2400 + 60Q + .50Q2, where Q is rides per day. Its marginal cost function is MC = 60 + Q (the first derivative of the total cost function). The daily demand function for rides between the two destinations is P = 200 - Q, where P is the fare.

a. On a graph representing the market for limousine service between the airport and center city, plot the market demand curve.

b. Find the equation representing total revenue as a function of Q only.

c. Find the equation for Calloway’s marginal revenue as a function of Q only.

d. Plot the marginal revenue curve on your graph

e. Plot the marginal cost curve on your graph

f. Using algebra, calculate Calloway’s profit maximizing output.

g. What price will it charge?

h. What profit will it earn?                                                      

i. Show Calloway's on your graph.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
How many of you are familiar with the term 'rent seeking'? This is when a company, organization or individual uses THEIR own resources to obtain an economic gain from others w
The business world has become large and spread out today. There are companies sending employees all over the country and around the world to conduct business. Discuss the vari
Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. Each of these groups has a different
If ___________________ exceeds ___________________, then the economy is in an inflationary gap. Eventually input prices will fall and output will rise in the economy if:
In "Preventing a Brave New World" (pp. 331-343), Leon Kass concludes that reproductive and therapeutic cloning of human embryos is unethical. What are the exact steps in Kass'
The increased demand for corn to be used in ethanol is driven in large part by nearly $10 billion in government subsidies. who gains and who loses as a result of these subsidi
A firm in a truely competitive mkt discovers that the price of its product is above its minimum AVC point but everywhere below its ATC. Then the firm: A) minimizes losses by p
Assume that, in a competitive market, long run supply and demand is more elastic than short run supply and demand. Suppose that the government imposes a transactions tax in th