Reference no: EM13133823
Mos Eisley Cantina is the only tavern in a small remote planet. Demand at Mos's is QD = 880 - 200P while the daily total cost is TC(Q)=0.005Q2+2Q+50 where q is the number of clients served each day and total cost is measured in Wupi Upis per customer.
a) In a diagram, illustrate the Cantina's Average Total Cost, Average Variable Cost and Marginal Cost curves.
b) Find the Cantina's minimum efficient scale and its average cost when operating at minimum efficient scale.
c) Find the Cantina's marginal revenue function.
d) In the same diagram, illustrate the Cantina's demand curve and marginal revenue curve.
e) Find the Cantina's profit maximizing output (Q*) and price (P*).
f) If Mos knew his clients really well, he could charge each of them their reservation price. In this case, how many clients would Mos serve each day?
Mos is notable to perfectly price discriminate, however he knows that humans and wookies have a demand of QDHW = 400 - 100P while the other customers have demand of QDO = 480 - 100P.
g) If Mos charges all clients the same price, how many humans or Wookies does he serve each day? How many clients of other species does he serve each day?
h) If Mos charges all clients the same price, what is the price elasticity of demand of humans and Wookies? What is the price elasticity of demand of clients of other species?
i) Would Mos' profit increase if he charged one price to humans and Wookies and a different price to clients of other species? What type of client would pay a higher price?
|
Geometry-pythogorean theorem
: A right triangle is a triangle with one angle measuring 90? In a right triangle, the sides are related by Pythagorean Theorem, , where c is the hypotenuse (the side opposite the 90?angle).
|
|
What is the budgeted cost of goods manufactured
: work in progress inventory on December 31, 2010, is expected to be 197,600. What is the budgeted cost of goods manufactured?
|
|
Ohn, lionel, and evelyn harrymore
: ohn, Lionel, and Evelyn Harrymore, siblings and actors, decide to retire after years on the road. They remember a town in Illinois they were familiar with from their travels.
|
|
Deducting payment for the option premium
: Determine the amount of dollars to be received, after deducting payment for the option premium.
|
|
Find the cantinas marginal revenue function
: Find the Cantina's minimum efficient scale and its average cost when operating at minimum efficient scale and find the Cantina's marginal revenue function.
|
|
What is the flexible budget variance for total expenses
: Western Outfilters Mountain Sports projected 2008 sales of 75000 units at a unit sale price of $12.00. Actual 2008 sales were 72000 units at $14.00 per unit. Actual variable costs, budgeted at $ 4.00 per unit, totaled $4.75 per unit. budgeted fixe..
|
|
Word problem involving tangent function
: A patient is being treated with laser therapy to remove a tumour that is located behind a vital organ. The tumor is 5.7 cm below the skin. To avoid the organ, the entry point of the laser must be 12.4 cm above the tumour along the skin.
|
|
What was the company turnover rounded to the nearest tenth
: Last year the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's turnover rounded to the nearest tenth?
|
|
Creditors petition the court to order the company sold
: When the company has filed under chapter 11, can the creditors petition the court to order the company sold pursuant to a offer? What elements should the court take into consideration?
|