What is the marginal revenue function

Assignment Help Other Subject

Reference no: EM131482644

Q1. Harley-Davidson motorcycle company, which had a copyright on the word "hog," applied for exclusive rights to its engine sound. Why would a company want copy rights on two such mundane things?

Q2. Dr. Leona Williams, a well-known plastic surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr. Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to be Q = 480 - 0.2P

where Q is the number of nose operations performed monthly and P is the price of a nose operation.

a. What is the inverse demand function for Dr. Williams's services?

b. What is the marginal revenue function?

The average variable cost function for reconstructive nose surgery is estimated to be

AVC = 2Q² - 15Q + 400

where AVC is average variable cost (measured in dollars), and Q is the number of operations per month. The doctor's fixed costs each month are $8,000.

c. If the doctor wishes to maximize her profit, how many nose operations should she perform each month?

d. What price should Dr. Williams charge to perform a nose operation?

e. How much profit does she earn each month?

Q3. You own a theater with 200 seats. The demand for seats is Q = 300 - 100P. You are charging $1.25 per ticket and selling tickets to 175 people. Your costs are fixed and do not depend on the number of people attending. Should you cut your price to fill the theater? Explain. What other pricing policies might you use to increase your profits?

Reference no: EM131482644

Questions Cloud

Define the economic policies : Economic policies are sometimes complex. The following events took place in the same year.

How should the policy affect the tax revenues : President Reagans tax-cut package reduced tax rates for most people. How should this policy affect.

Calculate monthly discrete returns : Compute descriptive statistics for monthly Apple Inc - What is the probability of the S&P 500 index returns - Is the distribution of monthly APPL returns Normal distribution?

State the law of diminishing marginal returns : State the law of diminishing marginal returns. Explain why the marginal cost of production must increase if the marginal product of a variable resource.

What is the marginal revenue function : Dr. Leona Williams, a well-known plastic surgeon, What is the inverse demand function for Dr. Williams's services? What is the marginal revenue function

Levels of skill development in public service management : What are the levels of skill development in public service management?

What is the project npw as of december : A project has a net present worth of -$140 as of January 1, 2000. If a 10% interest rate is used, what is the project NPW as of December 31, 1997?

Inequality for woman reduces economic growth : List three reasons that inequality for woman reduces economic growth.

Would a big tax cut improve economic conditions : Where do you stand on the tax-cut debate? Would a big tax cut improve economic conditions? Which of the four taxes discussed in this chapter should be cut?

Reviews

len1482644

5/3/2017 5:32:25 AM

Please show all work & list references if used. Applied problem 7 Chapter 12 pg.504 Applied problem Chapter 12 AP 11 pg 504-505 a, b, c, d, e. Your costs are fixed and do not depend on the number of people attending. Should you cut your price to fill the theater? Explain. What other pricing policies might you use to increase your profits?

Write a Review

Required(*) Message

User Account

All Pages