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Q. AMS recently instituted an in-house recycling program. Profits of this program include not only profits to environment of recycling however also goodwill generated by AMS's leadership in this area. Costs of recycling include all of energy, labour and space required to do recycling. Assume se profits and costs are given by TR (Q)=100Q - 2Q2 and TC(Q) = 2Q (Note that MR = 100 - 4Q and MC= 2 ).
a. Illustrate what level of Q maximizes profit of recycling?
b. Illustrate what is marginal profit (income) at this level of Q?
c. Illustrate what is marginal cost at this level of Q?
d. Illustrate what level of Q minimizes total costs of recycling?
e. Illustrate what level of recycling is optimal? Why?
Elucidate how much profit will it earn at that output rate. If the marketplace price dropped to $10, illustrate what should the firm do.
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If you advertise and your rival does not, you will make $ 10 million and your rival will make $ 3 million. If your rival advertises and you do not, you will make $1 million and your rival will make $ 3 million.
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China's entry into the World Trade Organization (WTO) is likely to create more competition between local also foreign firms also provide China greater access to the marketplace for export.
Estimate the strength of your bargaining position for each option. Which of these would be the most advantageous.
The advent of personal computers also word processing software which eliminated the market for electric typewriters would be an example
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