Calculate the companys optimal profit and return on sales

Assignment Help Business Economics
Reference no: EM13987374

Lone Star Industries offers online automobile Insurance to preferred risk drivers in the state of Texas. The company is the low cost provider of insurance in the market with fixed costs of $18 million per year, plus variable costs of $750 for each driver insured on an annual basis. Price and marginal revenue functions for the company are as follows P = $1,500 - $.005Q MR = $1,500 - $.01Q 1. Calculate the company’s MC function, 2. Calculate the profit maximizing activity level 3. Calculate the company’s optimal profit and return on sales.

Reference no: EM13987374

Questions Cloud

Research activity over instructional and student life active : According to the Resource Importance principle of the relational/resource dependence perspective, who is likely to have power over whom based on the above observation, the relationship between the University and undergraduates, and why?
Calculate the net present value of each alternative : Saddie Hawkins, a management analyst with Mobile Telephone Services, Inc., has collected the following information about three proposed investment projects. Each investment proposal will require a $100,000 investment to modify equipment at its Colora..
Identify and discuss technology influence on society : Research, identify and discuss technology's influence on society, as well as at least three ways it has changed the way companies do business
Calculate the companys optimal profit and return on sales : Lone Star Industries offers online automobile Insurance to preferred risk drivers in the state of Texas. The company is the low cost provider of insurance in the market with fixed costs of $18 million per year, plus variable costs of $750 for each dr..
What are the different themes that carla : What are the different themes that Carla E. Stokes found with regard to young, African American girls' websites in Representing' in Cyberspace. This is a sociology of human sexuality course.
Thesis statement main body and conclusion : Topic Paper: In your opinion, is the current monetary policy that the Federal Reserve System pursuing helping or hurting our economy?
Total profit at the revenue maximizing activity level. : Dyna Rubber Inc. manufactures a high performance tire called the Sport 70. Fixed development costs for the current year are $600,000 per year. Marginal costs for manufacturing and distribution are $63 per tire. Calculate the output, price total reven..
How should the court rule on the objection : Kramerica objects to the introduction of this evidence, citing the Idaho statute prohibiting such evidence. How should the court rule on the objection

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate the income elasticity of demand first

Calculate the Income elasticity of Demand first and then give your explanations for both questions

  Illustrate what does this imply for the exchange value

If the dollar is devalued against gold and the pegged rate is changed to $40 per ounce, illustrate what does this imply for the exchange value of the pound. Explain your answer.

  Natural rate of unemployment

Where does the national unemployment rate stand relative to the Natural Rate of Unemployment

  Exports and imports are substracted from u.s. gdp

U.S. exports and imports each affect domestic production because: A. imports are added to U.S. GDP and exports are subtracted B. exports and imports and added to U.S. GDP C. imports are substracted from U.S. GDP and exports are added. D. exports ..

  How do you guess the interviewed will answer

Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer? Does the difference in response matters? I

  Qdue to rising food costs our vending contractor royalle

q.due to rising food costs our vending contractor royalle vending will implement a slight price increase on all

  Determination about whether an individual

Determination about whether an individual is an Indian is made by:

  Questions concerning data dictionary entries

What are the problems created by going directly to the manager with questions concerning data dictionary entries? Use a paragraph to list the problems you can see with your team member's approach.

  Theory of the pure rate of interest in free market

In the Austrian theory of the "pure" rate of interest in a free market, interest rates are a function of

  Mustard and mayonnaise are substitutes mustard and relish

mustard and mayonnaise are substitutes. mustard and relish are complements. mustard is a normal good. during the summer

  Suppose that the cost of eradicating polio from a society

Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in the society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social ..

  Define a utility function

The water is identical in the two sizes and John gets no utility from the containers themselves, only from the water.

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