Find the inverse demand function for the firms product

Assignment Help Econometrics
Reference no: EM13222768

You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 20 - 2P and C(Q) = 104 - 14Q + Q^2.

a. Find the inverse demand function for your firm's product.
b. Determine the profit-maximizing price and level of production.
c. Calculate your firm's maximum profits.
d. What long-run adjustments should you expect? Explain.

Reference no: EM13222768

Previous Q& A

  Explain what mass of sucrose should be combined

What mass of sucrose should be combined with 474 g of water to make a solution with an osmotic pressure of 8.20 atm at 310K ?

  How much time on social media is reasonable at work

How much time on social media is reasonable at work before it becomes time wasting or a theft of the employer's time? Does your answer depend on whether the employee has met his or her goals? Does it depend on how many hours he or she has worked?

  Satisfy your motivational needs within your organization

How do you attempt to satisfy your motivational needs within your organization and what opportunities does your organization provide to satisfy your needs and the needs of your coworkers?

  Which of the following is developed

If a decision is made to pursue organizing, which of the following is developed?

  Explain what radial position is the velocity

what radial position is the velocity of an individual fluid element equal to the average velocity of the fluid? (r= r subscript c and 0

  What does a unionization model suggest

What does a unionization model suggest?

  What influences kaminis optimal bundle of tacos and burritos

Kamini consumes tacos and burritos. Suppose her marginal utility for tacos and her marginal utility for burritos are constant @ 4. Also, the price of a taco = $1.00, price of burrito = $2.00 Kamini's income (budget) = $20.00

  Explain the absorption wavelength should increase

As conjugated dyes get longer, two effects compete. The Equation, ?= 8mcL^2/h(2ni+1) indicates that as ni increases, the absorption wavelength should decrease, but as L increases, the absorption wavelength should increase. Which one wins and why?

  What strongly facilitates employment

In some occupations, what strongly facilitates employment?

  Which of the following generally applies the same criteria

Which of the following generally applies the same criteria to acceleration as to initial unit determination?

Reviews

Write a Review

 

Similar Q& A

  What is the smallest the price can be for the firm

Suppose you are the manager of a watchmaking rm operating in a competitive market. Your cost of production is given by C = 200+2q2, where q is the level of output and C is total cost. (The marginal cost of production is 4q; the xed cost is $200.)

  How much will she be able to spend on health insurance

As far as the tax code is concerned, HeadBook will increase its expenses by $5000 in either case. If it pays for the policy, it incurs a $5000 health care expense. If it raises Vanessa's salary by $5000, it incurs $5000 of salary expense.

  What would be the opportunity cost of growing

Each acre can support 10 banana trees. However the 3 acres differ in their ability to support mango trees. She can grow 30 mango trees on the best land, 20 mango trees on the good land, and 10 mango trees on the bad land.

  How two firms control the entire market for gasoline

Two firms control the entire market for gasoline. They both have identical marginal costs of $1/gallon. The inverse demand for a gallon of gasoline is given by P(G)=10-1.5G. If they decide to collude and split the profits equally, what will each firm..

  How much of each good will the firm produce

Suppose that a monopolist is selling in two distinct markets each sheltered from the other, and the marginal revenue of each product is given below and the marginal cost of each is the same as indicated. How much of each good will the firm produce..

  What price should he charge for the firms product

Alex is the manager of a division of a paper firm that produces copier paper and sells it on the wholesale market. His firm's output represents about 1.5% of total copier paper sales. The wholesale price of copier paper is $3.95 per standard packa..

  What is the probability of tossing a dice

When a pair of dice are tossed, the results may be any whole number from 2 through 12. In the game of craps one can win by tossing either a 7 or 11 on the first roll. What is the probability of doing this.

  Determine the average life of supplier bs tires

A purchasing agent for a trucking company is shopping for replacement tires for their trucks from two suppliers. The suppliers' prices are the same. However, Supplier A's tires have an average life of 60,000 miles with a standard deviation of 10,0..

  Which is the alternate hypothesis

The mean gross annual incomes of certified welders are normally distributed with the mean of $23,577 and a standard deviation of $2,358. The ship building association wishes to find out whether their welders earn more or less than $23,577 annually..

  Define the inventory level vs time for a reasonable number

A company has an annual requirement for 150,000 parts, which cost $125 each. The parts require processing having a $4,000 setup cost. Each part occupies 0.5 sqft of floor space in the factory. Floor space has a total cost of $12.50 per square foot..

  Defin effects of the increase in demand on a typical firm

A perfectly competitive market is in long-run equilibrium. At present there are 100 identical firms each producing 5,000 units of output. The prevailing market price is $20. Assume that each firm faces increasing marginal cost.

  Calculate the after-tax cash flows using macrs-gds

A loan of $200,000 at 7% interest will help fund the purchase. The loan is to be repaid in seven equal annual installments including interest. The firm's marginal income tax rate is 39%. The equipment qualifies for MACRS 5-year property.

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