Find what price katrinas candies should charge

Assignment Help Macroeconomics
Reference no: EM131245351

Discussion

From the scenario, assuming Katrina's Candies is operating in the monopolistically competitive market structure and faces the following weekly demand and short-run cost functions:

VC = 20Q+0.006665 Q2 with MC=20 + 0.01333Q and FC = $5,000

P = 50-0.01Q and MR = 50-0.02Q

*Where price is in $ and Q is in kilograms. All answers should be rounded to the nearest whole number.

Algebraically, determine what price Katrina's Candies should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.

Reference no: EM131245351

Questions Cloud

Reorder the six real estate trusts in problem : The first widow leaves you unsure as to whether she is risk averse. What advice can you give her? - The second widow shows definite risk aversion. What is your advice to her?
What was the average velocity of the stone : A bird is flying horizontally over level ground at a steady known speed v (m/s). As it flies, bird releases a stone ("drops" it) from its beak. What was the average velocity of the stone over the time interval when it was a projectile
Use the demand-supply model for the bond market : Use the demand-supply model for the bond market to answer the questions: what happens to the equilibrium price of bonds and which curve shifts which direction. if the stock market collapses?
Compare the role of religion in india and in china : Both Buddhism and Sikhism have roots that go back into Hinduism. Compare and contrast how each of these traditions maintained continuity with Hinduism and how they moved away from it. Using at least five of the Seven Dimensions of Religion, c..
Find what price katrinas candies should charge : Algebraically, determine what price Katrina's Candies should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.
How would this affect the number of comparisons required : When implementing Insertion Sort, a binary search could be used to locate the position within the first i - 1 elements of the array into which element i should be inserted. How would this affect the number of comparisons required? How would using ..
Fiscal policy play during a depression : What would government do with its fiscal policy play during a depression? What is the Federal Reserve most likely to do with monetary policy in the course of a depression?
Write two programs to compare the actual running times : Figure 7.5 shows the best-case number of swaps for Selection Sort as Θ(n). This is because the algorithm does not check to see if the ith record is already in the ith position; that is, it might perform unnecessary swaps.
Describe the opening battles on the eastern front : Describe the German invasion of Belgium. At a minimum include the attack on Liege, the Battle of Haelen, the fall of Aarshot, Belgian King Albert, the Belgian retreat to Antwerp, the fall of Brussels, Fanctireurs, Schrecklichkeit (Frightfulness),..

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Compare free-enterprise and socialism styles of government

Compare and contrast the free-enterprise and socialism styles of government. Make an argument which form of government would be easier to implement public policy and why?

  Illustratr what is there is an increase in the supply

Illustratr what is there is an increase in the supply of money.

  What is the long-run supply for the firm

A firm has a long-run cost function C1(y) = y^3 - 10y^2 + 30y. 1) Derive the firm's long-run average cost function 2) Derive the firm's long-run marginal cost function 3) Find the level of production with the lowest average cost 4) What is..

  Suppose that there is an increase in total factor product

Suppose that there is an increase in total factor productivity,which implies that all firms offer higher wages. In the search model of unemployment,determine the effects of this on the reservation wage and the long-run unemployment rate. Explain your..

  Define market imperfections

Using your own words, define market imperfections. To support your definition, include at least two examples. Do not include the examples from the book create your own examples.

  Total sales revenue will increase total tax revenue

Discuss whether each statement below is true, false or uncertain. Be sure to completely explain why, making use of appropriate equations, diagrams and so on.(a) A fall in the marginal cost of production of a monopolized good on which is levied ..

  Importance to computer science

Explain the concepts of data structure and algorithms and their importance to computer science.

  Which trial closing is ryan likely to use to ensure a sale

Ryan Witz sells vacuum cleaners door-to-door. After showing Mrs. Davis several models and demonstrations, Ryan can tell she is hesitant but interested. Which trial closing is Ryan likely to use to ensure a sale

  What is the annual money growth rate

Discuss the short-run effect on output, unemployment, general price level and interest rate with a substantial increase In the factor cost of production.

  Discuss the security of this approach

Suppose that you have a message consisting of 1024 bits. Design a method that will extend the key that is 64 bits long into a string (PAD) of 1024 bits to perform one-time pad encryption. Discuss the security of this approach

  What are the potential consequences of a country

What are the potential consequences of a country having a large overall debt?

  Define total profit as difference in total revenue and cost

Define Q to be level of output produced and sold, and suppose that the firm's cost function is given by the relationship;

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