Profit maximizing or cost minimizing

Assignment Help Macroeconomics
Reference no: EM1311074

Two monopolistically competitive firms face the same demand and total revenue functions but face different total cost functions. These demand, total revenue, and cost functions are given below.

            P = 25 - 0.25Q

TR = 25Q - 0.25Q2

Total cost function of firm 1: TC1 = 4,000 + 5Q

Total cost function of firm 2: TC2 = 3,000 + 7Q 

  1. Find the optimal (profit maximizing or cost minimizing) output of each firm,.
  2. Find the price that each firm charges at the when producing the optimal output.
  3. Find the total profit or loss of each firm at the optimal output.

Reference no: EM1311074

Previous Q& A

  Make a segmented income statement

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show dollar amounts.

  Evaluate the division''s margin

Evaluate the division's margin, evaluate the division's turnover and  What is the division's return on investment (ROI)?

  Calculate the variance and standard deviation

Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.

  Find the differential cost between the two alternatives

Which costs are relevant and which are not relevant in the choice between these two alternatives and find the differential cost between the two alternatives?

  Evaluate the nominal annual cost of trade

Nominal annual cost of trade credit - Evaluate the nominal annual cost of trade credit be if you pay 100 days after the purchase?

  Computation of number of shares to be used for requirement

Computation of number of shares to be used for required amount of requirement and How much will McDougal Entertainment receive from this stock offering

  Experience of most recent recession

When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.

  Show free trade credit firm receive during the year

Net purchases amount to $500,000 per year. On average, how much "free" trade credit does the firm receive during the year?

  External and internal motivation

External and internal motivation is two types of motivation that can help you reach your goals.

  Variables which are based on experience of us economy

Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.

Reviews

Write a Review

 

Similar Q& A

  Socio-economic

The socio-economic shortcomings that China experienced

  Causes of the stagflation

What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  What is bill''s opportunity cost of producing one hat

What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.

  Market clearing price and quantity

Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?

  Describe the effects of monetary policies

Describe the effects of monetary policies on the economy's production and employment.

  Explain international monetary system

Explain International Monetary System

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  Open-economy macroeconomics

Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.

  Explain the economic situation in the uae

Explain the economic situation in the UAE based on the article. Summarize the articles with your own words

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

  Calculate the variance and standard deviation

Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.

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