What is marginal revenue from selling another kitten

Assignment Help Business Economics
Reference no: EM131097371

Josie’s Pussycats sells ceramic kittens. The marginal cost of producing a particular kitten depends on how many kittens Josie produces, and is given by the formula MC = 0.8q. Assume that the ceramic kitten industry is perfectly competitive, and Josie can sell as many kittens as she likes at the market price of $16. (a) What is Josie’s marginal revenue from selling another kitten? (b) Determine how many kittens Josie should produce if she wants to maximize profit. How much profit will she make at this output level? Assume fixed costs are zero. (Hint: To find the total cost, take the average of the first and last unit of production, and multiply by the total quantity produced.) (c) Suppose Josie is forced to pay a $100 license to produce her ceramic kittens. What is her value of producer surplus after paying the license?

Reference no: EM131097371

Questions Cloud

What is the concert hall producer surplus : Suppose that a concert hall faces the following demand curve for its evening shows: QE =40−.8P and the following demand for its afternoon shows: QA =24−.8P where Q is the number of tickets in thousands and P is the price of a ticket in dollars. What ..
Preferred choice wayne center for nursing : Enter the 10468 zip code in the box asking for a location or zipcode and select one of the Bronx nursing homes that will be listed.  Review all aspect (staffing, survey, quality measures) and write a paragraph to summarize what you learned from vi..
What will be its profit-maximizing price-producer surplus : Suppose Netflix’s representative customer’s demand curve in the market for DVD rentals is Q = 20 − 10P, where Q is the number of DVDs rented per month and P is in dollars per DVD. If Netflix charges a single price per DVD regardless of how many DVDs ..
Find the long-run equilibrium price in the market : Assume a perfectly competitive industry. Each firm in the industry faces a long-run total cost such that LTC=14000q−80q2+q3 and LMC=14000−160q+3q2. Find the long-run quantity produced by each firm. Find the long-run equilibrium price in the market.
What is marginal revenue from selling another kitten : Josie’s Pussycats sells ceramic kittens. The marginal cost of producing a particular kitten depends on how many kittens Josie produces, and is given by the formula MC = 0.8q. Assume that the ceramic kitten industry is perfectly competitive, and Josie..
Find the real interest rate that clears the goods market : Find the real interest rate that clears the goods market. Please show your work. Find the price level needed to clear the money market. Please show your work.
Calculate the optimal level of spending for both agents : European Commission’s preference for a common competition policy is given by the following function: P=1−X, where P denotes price, and X denotes the level of spending allocated to such policy. Draw a diagram in which you illustrate the preferences of..
Leader in business-politics : Research (a Web search will do) a leader, past or present. This might be a leader in business, politics, or society (see below for examples of leaders).
Determine if any part of the chicken will freeze during this : determine thecenter and the surface temperatures of the chicken in 2 h and 30 min. Also, determine if any part of the chicken will freeze during this process.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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