What price-quantity combination maximizes firms profit

Assignment Help Econometrics
Reference no: EM13223767

You are the manager of a monopoly, and your demand and cost functions are given by P = 200 - 2Q and C(Q) = 2000 + 3Qsquared, respectively.

a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits.
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenues.
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?

Reference no: EM13223767

Questions Cloud

Quantify the objectives of the various projects : Quantify the objectives of the various projects, the objectives of the SBU and the objectives of the parent company and present the KPIs of the industry
Explain mechanism for the reaction of salicylic acid : Write a detailed mechanism for the reaction of salicylic acid with acetic anhydride, showing clearly the function of the catalyst, sulfuric acid.
Do you concur with the dispute settlement decisions : Do you concur with the dispute settlement decisions in the World Trade Organization in this case? The panel report? The appellate decision? The arbitration ruling?
What communication processes : What communication processes were adopted in each case (there may be more than one)? What message/information was the sender trying to send out? How successful was that person/body in communicating that message? What barriers to successful communicat..
What price-quantity combination maximizes firms profit : You are the manager of a monopoly, and your demand and cost functions are given by P = 200 - 2Q and C(Q) = 2000 + 3Qsquared, respectively. a. What price-quantity combination maximizes your firm's profits
Explain what is the gas composition on a wet basis : The composition of a gas on a dry basis is 71.0 mole% N2, 12.0% O2, 12.0% CO2, and 5.0% CO. If the mole fraction of water is 0.160, what is the gas composition on a wet basis?
Discuss the sequence of construction for this project : Briefly discuss the sequence of construction for this project, including the rolling sequence for the hot-mixed asphalt pavement portion of the project. Explain why cold-mixed pavement construction might have been considered unsuitable for this pr..
Determine the purchase of 10 better trash collection trucks : Acme Landfill Company is considering the purchase of 10 better trash collection trucks. Each truck costs $50,000 and will last 7 years. the firm estimates that the entire purchase will increase its annual total annual revenues by $100,000 per year..
Describe why most of the difference in omega-3 : Explain why most of the difference in omega-3 PUFAs in Alaskan salmon are seen in the phospholipid component of the fish rather than in the triglyceride component of the fish

Reviews

Write a Review

Econometrics Questions & Answers

  Determine what will be the outcome of the game

Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game

  Cost of holding inventory

To ensure that correct size of heart valve is available for heart surgery, Heart Plus, maker of valves employs salespeople to place and maintain inventories at hospitals in its market.

  Estimate market shares for the cellular phone manufacturing

Estimated market shares for the cellular phone manufacturing market are given in the table below. If Samsung were to merge with Sanyo, the four-firm concentration ratio would be Firm Market Share Nokia 36% Fujitsu 3% Kyocera 3%

  What is the dead weight loss given profit maximized output

Joe sells vacuums. Given the demand for vacuums at P= 15 - .001Q. Joe faces constant cost of $3 per vacuum and $5,000 fixed cost. What is the dead weight loss given profit maximized out put is 6,000 units and rpice 9$

  What would be the firms cost disadvantage

Suppose that a firm comtemplating entering the market for breakfast cereal would need to invest $100 million in a production plant (or about $10 million annually on an amortized basis). Such a plant could produce about 100 million pounds of cereal..

  Determine what was the total amount of financing

Nucor Corp manufactures generator coolers for nuclear and gass turbine power plants. The company completed a plant expansion through financing that had a debt/equity mix of 40-60. If %15 million came from mortgages and bond sales, what was the to..

  What would drive interest rates in such an environment

what would an LM curve look like in a Quantity Theory world where velocity is fixed and is not impacted by interest rates (that is, M=kPY) what do you think would drive interest rates in such an environment

  Determine the preferred alternative

The Ajax Manufacturing Company wishes to choose one of the following machines. Machine 1 Machine 2 Machine 3Initial cost $12,000 $15,000 $21,000 Planning horizon 5 years 5 years 5 years Salvage value $1200 $2,000 $3,000Revenue years 1,..,k $3,000 +50..

  What is the average tax rate relative to the gross income

Next, assume you paid $700 in interest on your student loans last year, put $2,000 into a health savings account (HSA), and deposited $5,000 into an individual retirement account (IRA). These expenditures are all tax exempt.

  What should steven do to achieve optimal consumption bundle

Both are normal goods for him; each DVD costs $10 and each cup of iced tea costs $2. For each of the following situations, decide whether this is Steven's optimal consumption bundle. If not, what should Steven do to achieve his optimal consumption..

  Was the higher price caused by a change in demand

In the last month, the price of gasoline increased by 20%. Your job is to determine what caused the increase in price: a change in demand or change in supply. Ms. Info has all the numbers associated with the gasoline market and she can answer a si..

  What is the socially optimum level of practice for the band

Gina was in a garage band when she was in high school, and the only time they could find to practice was on Saturday morning (much to the dismay of her neighbors.) Suppose the band received $49 in internal benefit (i.e., happiness) from practicing..

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