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
factors influencing the conditions of demand for a given product

#question.explain three neccessary condition to achieve pareto efficiency.

Consider the following linear program in primal form and develop the dual formulation in a detailed manner. Use matrix notation in developing the dual. Clearly express all the dual

reason for kinked demand curve

Mikes' preferences for consumption and leisure may be represented by the Utility function: u(C, L) =  ( C-200)*(L-80) . His marginal utilities of leisure and consumption are (C-200

What is the purpose of the IMF and why might the IMF be called the “lender of last resort”? Discuss how three of the tools they use for establishing economic stability in a country


Real and nominal GDP, GNP, and Intrest rates, Stock & flow variables, Disinflation, Inflation rates, unemployement rates, labor force, participation rate, output per person, GDP d

Q. Describe pay-as-you-go pension plan? Pay-As-You-Go Pension: A pay-as-you-go pension plan sponsor basically just pays for pension benefits to retired plan members out of its

explain the various marginal uses and limitations of break even poin?