Paper dragon limited partnership makes two products

Assignment Help Business Economics
Reference no: EM131164496

The Paper Dragon Limited Partnership makes two products, paper and cardboard. The relationship between π, the firm’s annual profit (in thousands of dollars), and its output of each good is:

π = -50 + 40X + 30Y – 5X^2 – 4Y^2 – 3XY

where X is the firm’s annual output of paper (in tons) and Y is the firm’s annual output of cardboard (in tons).

a. find the output of each good that Paper Dragon LP should produce if it wants to maximize profit.

b. if the community in which the firm is located imposed a flat tax of $5,000 per year on the firm, will this alter the answer to part a? If so, how will the answer change?

Reference no: EM131164496

Questions Cloud

The price elasticity of demand for a product : If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
Using group in developing descriptive statistics : Provide the steps in creating a Group in EViews. What are Descriptive statistics? Provide the steps in using a Group in developing Descriptive Statistics. What is a Scatter Diagram and what information does it convey?
Not affect the elasticity of demand for product : Which of the following would increase the supply of corn? If the quantity of Harley-Davidson motorcycles demanded decreases by 10% when the price increases by 20%, the price elasticity of demand for Harley-Davidson motorcycles is: Which of the follow..
Globalization has no effect on terrorism : Many foreign policy and terrorism analysts view U.S. foreign policies in the Middle East as being conducive to terrorism. The killing of Osama bin Laden in 2011 by U.S. Special Forces effectively ended global terrorism. Poverty is not considered to b..
Paper dragon limited partnership makes two products : The Paper Dragon Limited Partnership makes two products, paper and cardboard. The relationship between π, the firm’s annual profit (in thousands of dollars), and its output of each good is: find the output of each good that Paper Dragon LP should pro..
Terrorism is essentially form of psychological warfare : Terrorism is essentially a form of psychological warfare. One of the costs of terrorism is the cost to democracy, with governments justifying violations of individuals’ rights on the grounds of national security. Conditions in Pakistan provide an env..
Supply of and the demand for good are highly elastic : If both the supply of and the demand for a good are highly elastic, a shift of either curve will always result in. If the supply of rental housing increases causing the price to fall and apartment dwellers move into bigger apartments that cost the sa..
Calculate the equilibrium federal funds rate-reserves : Suppose that the demand for reserves when the federal funds rate exceeds the interest rate on reserves is given by D=40-(2*i); where I is the federal funds rate in percent and D is expressed in billions of dollars. Calculate the equilibrium federal f..
Buggy whip manufacturer : Suppose it is 1905 and you are a buggy whip manufacturer. You hear a commotion outside and learn that a gas operated machine (car) had frightened a horse drawn carriage. You then look at your inventory of leather buggy whips and say to yourself (expl..

Reviews

Write a Review

Business Economics Questions & Answers

  Characteristic of command system

Which of the follow is a characteristic of a command system?

  Unstable export markets-worsening terms of trade

Unstable export markets, worsening terms of trade, and limited access to the markets in advanced countries are just a few of the problems that have plagued nations in Africa, Asia, Latin America, and Middle East. For example, developing countries hav..

  Despite the absence of patent protection

Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade polyglutamate. Despite the absence of patent protection, Semi-Salt has averaged accounting profits of 5.5 percent on inve..

  The annualized percentage forward discount for the yen

A forward premium for a given currency (say the nominal bilateral exchange rate value of the dollar where S = 80 yen/1 dollar = 80) occurs when the value of the currency as given by the forward spot rate appreciates such as S = 85 yen/1 dollar = 85. ..

  What are coral reefs status of coral reefs threats to coral

What are coral reefs Status of coral reefs Threats to coral reefs Uses of coral reefs what is a Coral Reef. Fleshy sac topped with ring of tentacles around central mouth opening what is a Coral Reef.

  Alternative recommendation from the selected strategies

Write at least one primary and one alternative recommendation from the selected strategies in response to each identified planning need. More than one recommendation may be needed to address all of the planning needs. It is suggested that each recomm..

  Consider low wage labor market

Consider a low wage labor market. Workers in this market are not presently covered by the minimum wage, but the government is considering implementing such legislation. If implemented, this law would require employers in the market to pay workers a $..

  State utility commissions typically regulate local phone

the rival long-distance carriers have complained that the local phone company repair persons have put peanut butter on rival long distance carriers's phone lines to encourage rats to eat through the lines.

  Explain how do open market operations work

Explain how do open market operations work through the fractional reserve banking system to impact the money supply and interest rates.

  Describe pressures that currency would face

Describe pressures that currency would face due to increasing oil prices. Will this response by central bank increase or decrease foreign reserves.

  New fixed assets is required to support this growth in sales

Thorpe Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity. Current sales are $320,000. Suppose fixed assets are $250,000 and sales are projected to grow to $357,000. How much (in dollars) in new fixed assets is required to ..

  Which quantity would the two companies have equal profits

Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and sale of a new type of kryptonite-powered lawnmowers. Lawnman has a somewhat older plant and requires a variable cost of $150 per lawnmower; its fixed costs are $200,000 p..

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