Firm profit-maximizing price-quantity-level of advertising

Assignment Help Business Economics
Reference no: EM131104329

The demand a monopoly faces is p =100-Q+A^.5, where Q is its quantity, p is its price, and A is its level of advertising. Its marginal cost of production is 10, and its cost of a unit of advertising is 1. What is the firm's profit equation? Solve for the firm's profit-maximizing price, quantity, and level of advertising.

Reference no: EM131104329

Questions Cloud

Fees banks can charge for non customer transactions : From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $10 million in withdrawals from other banks’ ATM machines. Based on this infor..
Explanation for why labor supply curve is upward sloping : Plotting the supply of labor In Denver, 140 people are willing to work an hour as hostesses if the wage is $10 per hour. For each additional $5 that the wage rises above $10, an additional 35 people are willing to work an hour. What is one explanatio..
Determine the pre-tax economic profit of this firm : Suppose you are considering starting your own consulting firm. You estimate if that if you did not start the firm, your starting salary at a job would be $40,000/yr. The revenues from this firm are expected to be $1,500,000. Determine the pre-tax acc..
Statistically significant in explaining variations in costs : A study of several grocery stores in the midwest yielded the following. Where q is the output of the store, measured in thousands of dollars of sales, and M is 1 if there is a regional warehouse located within 100 miles and 0 otherwise. The numbers b..
Firm profit-maximizing price-quantity-level of advertising : The demand a monopoly faces is p =100-Q+A^.5, where Q is its quantity, p is its price, and A is its level of advertising. Its marginal cost of production is 10, and its cost of a unit of advertising is 1. What is the firm's profit equation? Solve for..
The balance in prepaid insurance is a one year premium paid : (Adjusting Entries) Greco Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Other data:
What is the price elasticity of demand for each consumer : Let’s consider two smokers A and B who, following a 10% increase in the price of cigarettes, cut their smoking by 2% and 20% respectively. a) What is the price elasticity of demand for each consumer? Show all the steps of your calculation to get full..
Positive economic profit is to sell differentiated products : In perfect competition, economic profit is driven to zero as more firms join the market bidding prices down. One way for firms to maintain positive economic profit is to sell differentiated products. What sort of characteristics might a company empha..
Terms of promoting a strong and stable economy : There have been different economic philosophies promoted by the US government to deal with economic downturns. We've seen pump priming (Keynesian economics) during the New Deal and now supply side or trickle down economics during the Reagan era. Whic..

Reviews

Write a Review

Business Economics Questions & Answers

  Marketplace for engagement rings is in equilibrium

Assume that the marketplace for engagement rings is in equilibrium.

  Efficient levels of information in an organization

Propose how it can conclude the efficient levels of information in an organization to justify taking risk over uncertainty.

  Why might the elasticity depend on the time horizon

Suppose the price elasticity of demand for heating oil is .2 in the short run and .7 in the long run. Use mid-point methods in A and B and show your work. A) If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quanti..

  Given the short-run cost curve-perfectly competitive market

Given the short-run (SR) cost curve in the chart above for a firm in a perfectly competitive market, find the firm’s best output level and total profits when the market price is: a) $18, b) $13 c) $5 d) $3.

  Some individuals die without making adequate plans

Suppose that Congress and the President are concerned that some individuals die without making adequate plans to financially provide for their families after their death. What are the likely effects on employee well-being of this mandate?

  Paradox through implementation of the imperative

Identify two examples of a paradox in health care and pair each with an imperative for change from the Summary of the IOM Report, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America. Discuss a possible policy solution to..

  What will be its new level of real gdp

Suppose that a certain country has an MPC of 0.9 and a real GDP of $500 billion. If its investment spending decreases by $12 billion, what will be its new level of real GDP?

  Measured by value added approach and expenditure approach

Suppose a company produces $5M worth of output and has sales of $2M each to domestic and foreign customers. It imports $1 M worth of raw material, pays its workers $3M in wages, pays its creditors $2M in interest, and has minus $1M in profits for its..

  Events may decrease market labor demand

Which of the following events may decrease market labor demand? Choose all that apply.

  Q1 if an increase in the budget deficit reduces national

q1. if an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration

  What are the major causes of currency crises

What are the major causes of currency crises, and how can countries prevent these types of crises? What should be done if a crisis occurs? Use the interest rate parity model of exchange rate determination to explain what policies should be followed d..

  How many workers the firm should hire for different values

Elucidate how many workers the firm should hire for different values of the wage rate in order to maximize profit.

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