What is profit maximizing price

Assignment Help Econometrics
Reference no: EM13183720

Market research at Apple Corporation has shown that the demand function for its new iPhone is as follows: QA = 3 - 0.02PA + 0.0002I + 0.01PS where QA is the quantity demanded (in thousands) of iPhones, PA is the price of an iPhone, I is consumer income, and PS is the price of a Samsung phone, a close competitor. Apple estimates that I equals $40,000 and PS equals $400. The marginal cost of producing iPhones is estimated to be constant at a value of $250.

To maximize sales revenue, what is Q, P, and revenue?

To maximize profit, will it if P=600? What is profit maximizing price?

Graphs of - Firm demand, Costs, MR and TR?

Reference no: EM13183720

Questions Cloud

State what is the mass of a square piece of aluminum foil : What is the mass of a square piece of aluminum foil 100 micrometers thick and 10 cm wide? (Aluminum=2.7 g/cm^3)
State a two-component mixture is analyzed by gas : A two-component mixture is analyzed by gas chromatography with flame ionization detection. compound x has a retention time of tr= 11.53 min with N= 16,520 theoretical plates
What after tax rate of return can he expect to receive : Alfred chan decided to buy an old duplex as an investment. After looking for several months, he found a desirable duplex that could be bought for $300,000 cash. He decided that he would rent bought sides of the duplex, and determined that the tota..
Find out the concentration of bro3 : The solution is connected to a SCE referece cell (Esce = 0.241V) and a potential of Ecell= 1.169 V is measured. determine the concentration of BrO3 (aq) in the solution
What is profit maximizing price : Market research at Apple Corporation has shown that the demand function for its new iPhone is as follows: QA = 3 - 0.02PA + 0.0002I + 0.01PS where QA is the quantity demanded (in thousands) of iPhones, PA is the price of an iPhone, I is consumer i..
Explain how sp3 hybridization occurs in each atom : describe how sp3 hybridization occurs in each atom. a) carbon b) nitrogen c) oxygen. If these elements use sp3 hybrid orbitals to form bonds, how many lone pairs of electrons would be found on each?
Explain what is the molar concentration of the protein : The molecular weight of the protein is 3.4e4 grams per mole. What is the molar concentration of the protein?
Compute the change in energy deltae : Calculate the change in energy deltaE that occurs when 0.5L of liquid water is vaporized
Determine under what circumstance design a will be preferred : Consider the following two alternative designs. Design A has an initial cost of $300,000 and net annual revenues of $55,000; Design B had an initial investment of $450,000 and net annual revenues of $80,000. A 10% MARR was used over the 10-year pl..

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

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

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

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