Determining the concept of a demand curve

Assignment Help Macroeconomics
Reference no: EM131284472

1. Demand estimation - Explain briefly the concept of a demand curve and how the market experiment allows it to be known. Explain the procedure in estimating it. State your estimated demand curve. Discuss how well regressions fit the data and give a warning on when your estimates should or should not be used.

2. Cost estimation - Explain how you estimate costs. Show total costs as function of output quantity, and comment on how closely it fits the data. Discuss what marginal costs you estimate and why they might differ from the wholesale cost of inputs. Discuss what might render your estimates obsolete.

3. First price recommendation - Present your recommendations for a profit-maximizing price under the assumption the market conditions and production technology remain stable. Forecast revenue and profits at that price.

4. Second price recommendation - Present your recommendations for a profit-maximizing price assuming costs change so that the fixed cost becomes $3,100,000 with constant marginal cost of $6 per unit of output. Give revenue and profit targets.

Reference no: EM131284472

Questions Cloud

Are you for or against free trade : Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource differe..
Describe effective methods you used in identifying : Describe effective methods you used in identifying and narrowing down to just one of the two topics to further research for your final essay.Explain three ways you can critically analyze sources to determine if they are scholarly and credible.
Describe ways the team overcame barriers to creativity : Describe ways the team overcame barriers to creativity to identify solutions. Discuss how critical thinking was applied to come up with potential solutions and to motivate change.
Write an email requesting a recommendation : Imagine that you're interviewing for your ideal job. You're doing well in the process, and the HR manager has asked you for a letter of recommendation from one of your instructors. Write an email to the instructor who knows you best. You may inven..
Determining the concept of a demand curve : 1. Demand estimation - Explain briefly the concept of a demand curve and how the market experiment allows it to be known. Explain the procedure in estimating it. State your estimated demand curve. Discuss how well regressions fit the data and give..
Write an email to suggest an idea : Choose something simple enough to convey in a short message. Using the direct plan, put your main point up front, and be sure to use a clear, specific subject line to capture attention.
What stages were most challenging and why : Discuss the influence the decision-making process had on the outcome. Evaluate the effectiveness of the process. What stages were most challenging and why?
Determining the firm level of advertising : Assuming the information is correct, should you increase or decrease your firm's level of advertising? Explain. Show all calculations and provide the reasoning as clearly and concisely as possible.
Write a fundraising letter to older alumni : Now rewrite the letter you wrote for Exercise 11. Adapt it for a new audience: people who graduated between 30 and 40 years ago. What will you change to persuade this cohort to donate to your school?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Illustrate some advantages of a unionized organization

Illustrate what are some advantages of a unionized organization. What are some disadvantages.

  Explain the rule for optimum input allocation

State the rule for optimum input allocation to produce a given level of output at the lowest possible cost -when two inputs are variable.

  What does affect a firms efforts to maximize profits

In spite of the fact that firms do not make payments on resources they own, these resources still have an opportunity cost. How is this possible, and how does this affect a firm's efforts to maximize profits

  Illustrate what is the price elasticity of supply

Illustrate what is the price elasticity of supply for your chosen industry.

  Explain how can the abolition of cash fight inflation

Explain how can the abolition of cash fight inflation and reduce unemployment.

  Pushing yields down for the sixth session in seven

Treasury bond prices rose on Monday, pushing yields down for the sixth session in seven, as the lack of major data and low trading volumes gave traders little fodder. Yields on 10-year bonds, which move inversely to prices, fell 4 basis points to 1.6..

  Rise in the price of tv sets in japan also depreciation

Rise in the price of TV sets in Japan also depreciation of the dollar lead to a total increase of 9 percent in the dollar price of imported.

  5 page essay comparing theories from two economists

Assignment: 5 page essay comparing theories from two economists.  "The Age of Turbulence" by Alan Greenberg was assigned reading and one other economist of my choice who has credible and thorough knowledge of any topic of my choosing that has..

  Explain the budget identity and fixed budgetary commitments

Explain the budget identity and fixed budgetary commitments, with specific reference to the South African 2009/2010 budget, as constraints on the pursuit of discretionary fiscal policy

  What are the components of the monetary base

How independent is the Federal Reserve? Based on the experiences of the Fed in the U.S., as well as other central banks, do you believe that the Fed should be independent? Provide both pros and cons in your argument.

  Draw a sketch of your redesign

Name two ways you could update the above interface to support the principles ofdirect manipulation. Draw a sketch of your redesign.

  What level should cd rate fall for the loan to be approved

If the loan rate cannot be raised, to what level should the CD rate fall for the loan to be approved? Suppose the bank is willing to accept coverage of 95%. Calculate the RAROC value. Should the bank approve the loan? Suppose all the other assumpt..

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