What will be the maximum total revenue the firm can obtain

Assignment Help Econometrics
Reference no: EM13236763

A firm's estimated demand curve is given by the following equation: Q = 2840 -20P

a.) Based on the estimated demand curve, write the equations for:
i. Total Revenue
ii. Average revenue
iii. Marginal revenue

b.) Calculate point price elasticity of demand when Q=1600. Is the demand elastic or inelastic at this quantity? How do you know?

c.) What will be the maximum total revenue the firm can obtain?

Reference no: EM13236763

Questions Cloud

Explain the electrostatic force of magnitude : A system consists of two positive point charges, q1 and q2>q1. The total charge of the system is +62.0 x 10^-6 C, Find q1 and q2
Explain integrated rate equations and half-life equations : The decay of radioactive elements follows first-order kinetics. Therefore, the rate of decay can be described by the same integrated rate equations and half-life equations that are used to describe the rate of first-order chemical reactions.
Find q1 and q2 : A system consists of two positive point charges, q1 and q2>q1. The total charge of the system is +62.0 x 10^-6 C, Find q1 and q2
Finite population correction factor : The width of the interval without the finite population correction factor is wider than the confidence interval with the finite population correction factor.
What will be the maximum total revenue the firm can obtain : b.) Calculate point price elasticity of demand when Q=1600. Is the demand elastic or inelastic at this quantity How do you know c.) What will be the maximum total revenue the firm can obtain
How much would the firm have to increase its advertising : A travel company has hired a management consulting company to analyze demand in 26 regional markets for one of its major products: a guided tour to a particular country. The equation for the quantity demanded is
What are the options to deal with china on trade deficits : The U.S. has long been suffered from trade deficits (especially with China). Explain the effect of trade deficits on economic growth in the U.S. What are the options to deal with China on trade deficits
State ammonia can be made by reacting calcium cyanamide : Ammonia can be made by reacting calcium cyanamide (CaCN2) with water as shown: CaCN2 + 3 H2O => CaCO3 + 2 NH3.
Determine what is the restaurants current profit : At its current level of production, a pizza restaurant receives $20 for each pizza sold. The short-run average total cost is $10. At the price of $20, the restaurant's marginal cost curve crosses the marginal revenue curve at an output level of 10..

Reviews

Write a Review

 

Econometrics Questions & Answers

  Determine the minimum attractive rate of return

A pallet recycler has offered to purchase pallets, which are of certain sizes and in good condition. The pallets that are in these sizes and in acceptable condition amount to half the scrapped pallets. The pallet recycler is offering to pay $1.00 ..

  Calculate the nominal interest rate

For each of the expected inflation rates of 0, 2, 4, 6, and 8 percent, calculate the nominal interest rate and the after-tax expected real interest rate if the tax rate is 30 percent. Suppose that the Fisher hypothesis holds for an economy.

  What issues would arise with hiring best manager

Corporate profitability decline by 20 percent from 2008 to 2009. What performance percentage would you use to trigger executive bonuses for that year Why What issues would arise with hiring and retaining the best manager

  Calculate the price elasticity of demand for each group

Suppose that the eye doctor offers senior residents a discounted price for an eye exam. The demand function for senior residents is Qs = 50 - Ps, and the demand function for the general public is Qg = 60 - Pg. The marginal cost for an eye exam is ..

  What quantity of output will a typical firm produce

Market demand is given as QD = 200 - 3P. Market supply is given as QS = 2P + 100. Each identical firm has MC = 0.5Q andATC = 0.25Q. 1.) What quantity of output will a typical firm produce 2.) What is a firm's average total cost 3.) What is each firm..

  Define the marginal benefit function

A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B ..

  Determine the firms production function for gouda

The manager of a cheese-packing plant can use either people (labor) or cheese knivess (capital) to prepare packages of gouda. Based on estimates provided by an efficiency expert, the firm's production function for gouda is given by Q = 2K + L (MPK..

  Compute the price elasticity of demand for paint

Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following: 1.Compute the price elasticity of demand ..

  Predict formula for predicting proportion of housework done

A researcher sureys a group of working married women and reports the following results for the first four surveyed: Person % of contribution to household income % contribution to housework x Zx Y Zy C1 601.34 70-1.15 F3 30 -1.34 100 1.61

  Determine the mean square error

A random sample of 40 companies with assets over $10 million was selected and asked for their annual computer technology expense and industry. The ANOVA comparing the average computer technology expense among three industries rejected the null hyp..

  Which propositions should be rejected by the manager

A firm uses labor and capital as factors for a technology with constant returns to scale and strictly convex production function. A new manager, looking through past data, observed that: when factor prices were: wl = 20 and wk = 5; the firm hired l..

  What is the opportunity cost of one unit of wheat in arboc

Below is the production possibility information of small nations Arboc and Arbez, which can produce two goods, wheat, and coffee. The maximum quantity of each good is shown in the table below. Assume the two nations trade in a world containing man..

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