How many units should each plant produce to maximize profit

Assignment Help Macroeconomics
Reference no: EM13338247

[Requires Calculus] A perfectly competitive firm faces a market price of $10 for its output X. It own two plants, A and B whose total costs are

TC sub A = 10 + 2X + (.25X)2

TC sub B = 15 + .4X + (.1X)2

How many units should each plant produce to maximize profit at that price? (Show Work)

Reference no: EM13338247

Questions Cloud

Use a hypothetical example to illustrate whether you agree : Use a hypothetical example to illustrate whether you agree or disagree with the following statement, "Unemployment will go up more if the demand for labor is elastic, because the demand for labor will decrease more when you have elastic demand than i..
Can we conclude that the market demand for x slopes upward : Following are observations on the market price and the quantity of good X produced and consumed in three different years: $10 and 100 units, $4 and 57 units, and $8 and 88 units. Can we conclude that the market demand for X slopes upward?
Discourage long run growth through their policies : Analyze the roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita, and how governments can contribute, or discourage long run growth through their policies a..
Should current decisions be based on accounting cost : Suppose a firm produces bicycles. Will the firm's accounting statement reflecte the opportunity cost of the bicycles ? Why or why not? What cost would an accounting statement revela? Should current decisions be based on accounting cost? Explain.
How many units should each plant produce to maximize profit : A perfectly competitive firm faces a market price of $10 for its output X. It own two plants, A and B whose total costs are
Is this consumer maximizing his utility : A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts is 30...
What total surplus will result from a transaction between : Consider a seller who values a car at $9,500 and a buyer who values the same care at $10,000. What total surplus will result from a transaction between the two when the seller is faced with the follow sales tax rates: 0%, 2%, 4%, 6%, and 8%?
How many popsicles will be sold each day in the short run if : At a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit-elastic (Es = 1.0). So how many popsicles will be sold each day i..
Explain the relationship between gross national product : A Define each of the following: 1 Gross Domestic Product at Market Prices. 2 Gross National Product at Market Prices. 3 Gross National Product at Factor Cost. 4 National Income.

Reviews

Write a Review

Macroeconomics Questions & Answers

  What will happen in the market for personal computers

If the price of processor chips used in manufacturing personal computers decrease, what will happen in the market for personal computers How will the equilibrium price and equilibrium quantity of personal computers change

  What is autonomous consumption

We cut down trees and sell the timber for $8000. The timber is sawn up into lumber that sells for $18,000. The lumber is used to build furniture that sells to consumers for $30,000.Which of the following unemployed workers would be an example of ..

  How to use linear regression to predict the price

The average price/gallon of gass in July over the past 4 years was $2.74, $3.65, $3.45, and $3.63. Use linear regression to predict the price of gas the following year? How would I set up this problem? Do I use years as my x variable?

  Suppose that the money market is initially in equilibrium

Suppose that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to.

  Impact of tax on profit maximizing output and pricing

Assume that your firm above is the N.Y. Yankees and the league owners impose a lump sum tax of $4 million dollars on your firm.

  Discuss key factors that will influence the recommendations

You work for a compensation-consulting firm. You are designing a compensation scheme for the CEO of a major corporation. The board has asked you to choose the parameters a, b, and c, in the following incentive contract.

  Assume a merger of company would simultaneously lessen

Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.

  Analyse the conventional and unconventional tools

Analyse both the conventional and unconventional tools used by central banks and type of unemployment is responsible for this reduction in the unemployment rate? Explain your answer.

  Which socioeconomic group is likely to benefit the most

Explain the positive benefits and negative aspects, respectively, of HMO managed care from the provider's point of view-a physician and a healthcare facility-and from a patient's point of view. Which socioeconomic group is likely to benefit the mos..

  Effect of imposition of fixed fee on firms

What takes palce to output, the optimal scale of a firm, and price if there is a free entry into the market.

  How about a down-and-out call option

Devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy for you. How about a down-and-out call option

  What is the maximum value of the hhi

AT&T: 38.3% Verizon: 31.3% Sprint: 15.9% T-Mobile: 12.2% Other: 2.3% What is the maximum value of the HHI (a) Before the AT&T/T-Mobile deal? (b) If AT&T buys T-Mobile?

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