User Account

All Pages

New owner of drespie corn products and refineries

Assignment Help Macroeconomics
Reference no: EM131071210

Scenario

You are the new owner of Drespie Corn Products and Refineries. You are interested in your company's cost and revenue relationships as well as its future pricing strategies. Accordingly, you have developed the following relationships, which you believe to be accurate on the basis of historical data:

P = $50 - $0.005Q
TC = $73,500 + $6Q + $0.0006Q2
MR = $50 - $0.01Q
MC = $6 - $0.0012Q
where P is the price, Q the quantity, TC the total cost, MC the marginal cost, and MR the marginal revenue.

Tasks:

MR = $50 - $0.01Q = 0

Using the Microsoft Excel Template given below, complete all the data in the template.

Use the following formula to calculate the profit-maximizing point: MR - MC = 0. Explain your answer.

Using the equation for MR (given below), calculate the revenue-maximizing level of output. Explain your answer.

What is the difference between the output level where the total profit is maximized and the output level where the total revenue (TR) is maximized? What is the significance of these two values in the decision-making process?

Using Microsoft Excel, graph the data in the completed Template given below. Using the graph, identify the point where the total profit is maximized and the point where the TR is maximized. Explain your answers

Reference no: EM131071210

Questions Cloud

Will eating yogurt everyday reduce gum disease : Does the fear of being attacked by predators have a negative impact on reproduction in nesting birds? Will eating yogurt everyday reduce gum disease?
Discuss components of a research study : Create a research question related to your problem statement and then conduct a Literature review. Conduct background reading of your topic. Select at least 5 research articles related to your problem statement.
Discuss the forces that have promoted job decentralization : Discuss the forces that have promoted job decentralization in U.S. metropolitan areas. Explain the negative externalities associated with job decentralization. Assuming, as suggested in class, that the private gains and negative externalities/public ..
How chromosomes determine sex : Human body consists of 23 pairs of chromosome, the first 22 pairs of them are autosomes, and these are non sex chromosomes and 1 pair of sex chromosomes. How chromosomes determine sex.
New owner of drespie corn products and refineries : You are the new owner of Drespie Corn Products and Refineries. You are interested in your company's cost and revenue relationships as well as its future pricing strategies. Accordingly, you have developed the following relationships, which you bel..
Calculate the revenue for the year : Using the accural basis revenue on the income statement was$124,320. Accounts receivable were $3,320 on January 1 and $3,600on December 31. Unearned revenue was $1,040 on January 1 and $1,690 on December 31.
Do you think starbucks has grown rapidly : Do you think Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment customers want
Demand and total cost functions : A firm faces the following demand and total cost functions:
Why is age of menarche lowering : Puberty begins at ages 8 to 10 for most girls in the United States and Europe, but significantly later in many countries (Saladin K. 2015). Puberty In Girls-Principal Signs,3 Stages, Why Is Age Of Menarche Lowering?

Reviews

Write a Review

Macroeconomics Questions & Answers

  What is the major problem in achieving an efficient use

what is the major problem in achieving an efficient use of the worlds water if there were a global market in water, like there is in oil, how do u think the market would work would a free world market in water achieve an efficient use.

  Determine the effects of the tax

Assume that gasoline retailing industry is perfectly competitive, constant expenses, and in long run equilibrium. If the government unexpectedly levies a 5-cent tax on every gallon sold by gasoline retailers,

  1 suppose a country that is initially at a steady-state

1. suppose a country that is initially at a steady-state level of capital per-worker introduces a successful

  Net advantage to leasing the industry will lease equipment

If there is a positive Net Advantage to Leasing the industry will lease the equipment. Otherwise, it will buy it. What is the NAL.

  Because government subsidies are paid with tax dollars and

Because government subsidies are paid with tax dollars and tax dollars are often used to purchase any surplus milk, consumers effectively pay more than the retail price per gallon of milk when considering the amount they contribute to dairy farmers t..

  Marshallia and hicksian demand functions

Use the utility function to answer the questions, below: (x1, x2) = exp (√(x 1 ) + √(x 2 )-Derive the Marshallian (ordinary) demand function for good1 and 2, x i *(p,l), i =1,2 . Then derive the indirect utility function (p,l).

  Elucidate effect would you expect an increase property tax

Elucidate effect would you expect an increase in the property tax rate to have on residential rents. Would you expect the effect to be different in the long run from what it is in the short run.

  What is the relationship between duration and the amount of

Maximum Pension Fund is attempting to balance one of the bond portfolios under its management. The fund has identified three bonds that have five year maturities and trade at a yield to maturity of 9 percent

  Describe the production function for campaign votes

A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters (mail outs) to potential voters in an election campaign. Describe the "production function" for campaign votes.

  1 suppose a country enacts a tax policy that discourages

1. suppose a country enacts a tax policy that discourages investment suppose the policy reduces the investment rate

  Discuss ways feds objective function can be use with economy

Discuss ways the Fed's objective function can be used with an economic model to evaluate alternative monetary policies. Discuss ways that economists could use the Phillip's curve to create better economic policy than we currently have.

  Consumption and savings function

Suppose the slope of the consumption function is 0.75 and there was an increase in income of $100. Calculate the increase in consumption.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd