Sole producer-output level-selling price and total profits

Assignment Help Business Economics

Reference no: EM13818211

Zar Island Gas Company is the sole producer of natural gas in the remote island country of Zar. The company's operations are regulated by the State Energy Commission. The demand function for gas in Zar has been estimated as:

P = 1,000 - 0.2Q

where Q is output (measured in units) and P is price (measured in dollars per unit). Zar Island's cost function is:

TC = 300,000 + 10Q

In the absence of any government price regulation, determine Zar Island's optimal (a) output level, (b) selling price, and (c) total profits.

Reference no: EM13818211

Questions Cloud

Federal reserve easy money policy : Which of the following results should be included where the question mark appears in the illustration? Which of the following is correct regarding the structure of the Federal Reserve? Which of the following results should be included where the quest..

Discuss the benefits that loyal repeat customers offers : Create a report that describes and critically analyzes at least 5 contemporary best practices to improve customer loyalty in a health care organization. Be sure to discuss the (multiple) benefits that loyal, repeat customers offer to health care orga..

Specify the marginal revenue function : The Lumins Lamp Company, a producer of old-style oil lamps, estimated the following demand function for its product: Specify the marginal revenue function. Write an equation for the total cost (TC) function in terms of Q. Specify the marginal cost fu..

Summarize development of business ethics over past decades : Summarize the development of business ethics over the past several decades, including the rise of social issues in business.

Sole producer-output level-selling price and total profits : Zar Island Gas Company is the sole producer of natural gas in the remote island country of Zar. The company's operations are regulated by the State Energy Commission. The demand function for gas in Zar has been estimated as: In the absence of any gov..

Define practical implication and possible criticisms : Write a 1000-word reflection hat summaries your personal understanding, practical implication and possible criticisms raised by the discussion and questions.

The u.s. counterintelligence mission : the U.S. counterintelligence mission

Explain how legislation is intend to reform corporate abuse : Explain how legislation is intended to reform corporate abuse. Explain the events that led to each of these regulatory measures.

Promotion for the new product launch : From the scenario, analyze the goals, product, price, and promotion for the new product launch in each stage of the product life cycle. Recommend two (2) marketing tactics and strategies that the marketing intern should consider in order to increa..

User Account

All Pages