Determine the optimal price, Microeconomics

The largest public utility company in New South Wales (NSW) is the sole provider of electricity across all regions in the state. The monthly demand for electricity in NSW is given by the inverse demand function P = 1,000 - 5Q. The electricity company has set up two electric generating facilities: Q1 kilowatts are produced at facility 1 and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are given by C1(Q1) = 10,050 + Q12 and C2(Q2) = 5,000 + 2Q22, respectively.

a. Determine the profit-maximising amounts of electricity to produce at the two facilities.

b. Determine the optimal price.

c. Determine the utility company's profits.

Posted Date: 2/21/2013 1:21:06 AM | Location : United States

Related Discussions:- Determine the optimal price, Assignment Help, Ask Question on Determine the optimal price, Get Answer, Expert's Help, Determine the optimal price Discussions

Write discussion on Determine the optimal price
Your posts are moderated
Related Questions
An ole firm can use its own data of past years regarding its sales in past years. These data are known as time series of sales. A firm can predict sales of its product by fitting t

Economic Development The word development is from the Latin root ‘Voloper’ which meant wrap up, envelop. The English used this word along with ‘des’ meaning ‘undo’. The word

Because of your reputation as an expert in economic analysis, you have been hired as vice president of a business consulting firm named Economists R Us.  This firm provides consult

FOREIGN TRADE: Interdependence between the economies of the world has increased multifold. External sector in the economy has gained primeimportance. Both exports and imports

define and explain theory of production?

Comparison with Our Needs: We can further test our performance by juxtaposing it with our requirements. Admittedly, it is very difficult to determine 'needed' rate of growth w

what are the benefits of natural resources and industryquestion..

leat cost factor combination

The demand for soft drinks has been estimated asQx 20PX 0.25PY0.45M 2 Determine the own, cross and income price elasticities of demand. Interpret your results.

using the indifference curve approach explain why the demand curve slope downwards from left to right...... is there any exceptions?