Deduce first-order condition for firms profit maximization

Assignment Help Microeconomics
Reference no: EM13391962

Consider a broking firm that supplies consulting services. The corresponding demand relation and cost functions are and , respectively.

(a) Derive the first-order condition for the firms profit maximization. Determine the profit maximizing level of Q.

(b) Verify that, at the point of maximum profit that the second-order sufficient condition holds.

(c) Check that marginal revenue is equal to marginal cost at the profit-maximizing level of output determined in (b).

Reference no: EM13391962

Questions Cloud

Submit a 1000 - 1250 word paper that identifies and : submit a 1000 - 1250 word paper that identifies and discusses the legal ethical and technological concerns of the
Explain the innovation adoption process for selco systems : discussion questions1. explain the innovation adoption process for selco systems in terms of the six factors that
As new stock has a higher cost than retained earnings : bankston corporation forecasts that if all of its existing financial policies are followed its proposed capital budget
Write down a 750- to 1050-word paper in apa format : write down a 750- to 1050-word paper in apa format comprising citations and references summarizing your ideas about
Deduce first-order condition for firms profit maximization : consider a broking firm that supplies consulting services. the corresponding demand relation and cost functions are and
Scanlon incs cfo hired you as a consultant to help her : scanlon inc.s cfo hired you as a consultant to help her estimate the cost of capital. you have been provided with the
The yield on the firms bonds is 875 and your firms : a butcher timber company hired your consulting firm to help them estimate the cost of equity. the yield on the firms
How would you insure that the control function is related : 1.how would you insure that the control function is related properly with the other functions of management?2.are there
Deduce the inverse demand curve for monopolist find out : assume the market demand curve faced by a monopolist is and its short-run total cost function isa derive the inverse

Reviews

Write a Review

Microeconomics Questions & Answers

  Evaluate the mu in the utility functions

Evaluate the MU in the utility functions

  To increase its return a bank that expects interest rates

to increase its return a bank that expects interest rates to fall willawant the duration of its assets to be greater

  1 suppose that in the market for us meat packers two

1. suppose that in the market for us meat packers two things happen simultaneously 1. due to growth in less developed

  Problem 1 use okuns law to answer the questions

problem 1. use okuns law to answer the questions belowutnbsp- ut-1nbsp -0.4gytnbsp- 3 assuming ut-1nbsp 7a. compute the

  Question about micro economics

Question about micro economics- Sam Smith owns an internet radio company that has subscribers in Houston and Dallas

  Terms of business stealing and product variety externalities

A hotel owner, having heard that new hotels consider to open in area, says, We have too many hotels in this town already. Statistics show that vacancy rates average 20% on any given night.

  Consider a market characterized by the following demand and

consider a market characterized by the following demand and supply conditions px 15 - 2qx and px 3 2qx. the

  Write a report addressing a quantitative analysis project

Write a report addressing a quantitative analysis (QA) project. Select a business of interest and develop QA best practices that can be developed and implemented to increase revenues and/or to decrease costs. Please provide at least three mathe..

  Determine optimal output, price, profit and revenue

Suppose that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.

  Why might a country with a fixed exchange rate contemplate

Suppose that you are a government official in charge of your country's fiscal policy. The country maintains a flexible exchange rate system. You are asked by your country's citizens to use fiscal policy alone to expand the country's..

  Describemonopoly-price cap regulation and the hhi

Which of the following is an example of a two-part tariff? Which of the following industries is most likely closest to achieving perfect price discrimination?

  On the graph demonstrate the area which represents net loss

assume the graph below represents the market demand for a patented prescription drug together with the long run

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