Reference no: EM13199306
A firm has two factories for which costs are given by:
The firm faces the following demand curve:
P = 700 - 5Q
where Q is total output - i.e., Q = Q1 + Q2.
a. On a diagram, draw the marginal cost curves for the two factories, the average and marginal revenue curves, and the total marginal cost curve (i.e., the marginal cost of producing Q = Q1 + Q2). Indicate the profit-maximizing output for each factory, total output, and price.
b. Calculate the values of Q1, Q2, Q, and P that maximize profit.
c. Suppose that labor costs increase in Factory 1 but not in Factory 2. How should the firm adjust (i.e., raise, lower, or leave unchanged) the following: Output in Factory 1? Output in Factory 2? Total output? Price?
Find the dimensions of the box with minimum surface area
: the volume of an open rectangular box with a square base is 32 cubic inches. find the dimensions of the box with minimum surface area.
|
What is the predicted change in ticket sales
: The elasticity of ticket sales with respect to the size of the local population is estimated to be about 0.7. Briefly explain what this number means. If the local population increases from 60,000 to 61,500,
|
How might a factor affect the operators pricing policy
: A golf course operator must decide the green fees (prices) to set on rounds of golf. Daily demand during the week is Pd=36-Qd/10, where Qd is the number of 18-hole rounds and Pd is the price per round.
|
Define the historical origins of mental health services
: Discuss the historical origins of mental health services in the United States. Have students discuss how mental health services have changed in recent years.
|
Indicate the profit-maximizing output for each factory
: On a diagram, draw the marginal cost curves for the two factories, the average and marginal revenue curves, and the total marginal cost curve (i.e., the marginal cost of producing Q = Q1 + Q2). Indicate the profit-maximizing output for each factor..
|
The spirit of equating marginal cost
: The spirit of equating marginal cost with marginal revenue is not held by perfectly competitive firms oligopolistic firms or else.
|
State moral imperatives and social conventions
: What experiences help preschoolers distinguish between moral imperatives, social conventions, and matters of personal choice?
|
Identify two specific actions the federal reserve could take
: Assume that the federal reserve engages in contractionary monetary policy at the time when commercial banks are holding no excess reserves. identify two specific actions the federal reserve could take to accomplish their contractionary goal.
|
Explain lmx theory and attribution theory
: Students have an opportunity to use LMX theory and attribution theory to analyze the reasons why the manager has not been able to develop an effective relationship with some subordinates.
|