What price-quantity combination maximizes the profits

Assignment Help Econometrics
Reference no: EM13190161

Monopoly manager has the demand and cost functiones as P=200-2Q and C(q)=2000+3Q2
1- calculate the maximum profits?
2- what price-quantity combination maximizes the profits?
3- at the profit-maximizing price-quantity combination, what is the demand elasticity?
4- what price-quantity combination maximizes revenue?
5-calculate the maximum revenues?
6- at the revenue-maximizing price-quantity combination, what is the demand elasticity is it elastic, inelastic or unit elastic?

Reference no: EM13190161

Questions Cloud

Depict the structure of the geometric isomer : Draw the structure of the geometric isomer of 2-pentene that has the lower melting point.
How could the price elasticity of demand for health care : The text argues that the greater the importance of an item in consumer budgets, the greater its elasticity. Health-care costs account for a relatively large share of household budgets. How could the price elasticity of demand for health care be suc..
Current ethical-moral issues facing business environment : Suppose you had to write a research paper on current ethical issues and social responsibility in today's business environment. Conduct a University Library or Internet search on the following two topics:
Compute the mass of sodium hydroxide : Calculate the mass of sodium hydroxide that must be added to 1.00 L of 1.00 M HC2H3O2 to double the pH of the solution (assume that the added NaOH does not change the volume of the solution)
What price-quantity combination maximizes the profits : Monopoly manager has the demand and cost functiones as P=200-2Q and C(q)=2000+3Q2 1- calculate the maximum profits 2- what price-quantity combination maximizes the profits 3- at the profit-maximizing price-quantity combination, what is the demand ela..
Define what is an alternative analytical procedure : What is an alternative analytical procedure for determining the quanity of water in a non-aqueous sample?
What is the pay off matrix for the game : a selfless person approaches Jones and Smith with a $100 bill and offers to sell it to the highest bidder, but both the winning and the losing bidders must pay her their bids. so if jones bids $2 and smith bids $1 they pay a total of $3, but jones..
What do you consider to be the source of ethics : What are business ethics and how are they developed? What do you consider to be the source of ethics?
State boyd dixon used radiocarbon dating on charcoal found : In order to understand the prehistory of the Hawaiian island of Lana'i better, anthropologists Maria Sweeney, Melinda Allen, and Boyd Dixon used radiocarbon dating on charcoal found in an ancient dwelling site, the Kaunolu Village National Histor..

Reviews

Write a Review

Econometrics Questions & Answers

  What is the effective interest rate

Barry, a Texas Crude Company engineer who did not take Engineering Economy while studying at Tech, recommended that Texas Crude purchase a special tool to reduce the cost of pumping oil out of the bayous of St. Martin Parish. As a result of Barry'..

  Define negative relationshp between gross domestic product

Compute the discount factor 1/(1+r)^t for r=1, 5, or 10 perent interest rates and t=30 and 50 years. remember that 1 percent is .01. based on your computation, is teh choice of discount factor important for deciding whether to do somehtinga bout..

  Determine the annual equivalent cash flows

The Solar Energy Company is producing electricity from a solar source by using a large array of solar cells and selling the power to the local utility company. Because these cells degrade over time, thereby resulting in lower conversion efficiency..

  Explain what happens to the coefficient on coll

Explain what happens to the coefficient on coll in terms of its magnitude and its statistical significance when points , rebounds , and assists are added to the regression. Why do you think this happened?

  Determine wilburs demand function for good

Assume Wilbur's utility function is U=(x1)*(x2)*(x3). Further assume that the law dictates that Wilbur consume two units of X1 for every unit of X2. Determine Wilbur's demand function for good 1. Explain, in words, all the steps in your deriv..

  Calculate the elasticity of demand

Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.Price of crackers   Quantity Demanded (per month)$3                        80 $2.5                    120

  If the company is maximimzing profit should it build bridge

A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge.If the company were to build t..

  Estimate of cross-price elasticity of demand for gasoline

Provide an estimate of the cross-price elasticity of demand for gasoline, both with respect to new cars and with respect to used cars. Are these estimates statistically significant? Do they align with economic theory? Give an interpretation of y..

  What is the sample standard deviation of weights

What is the sample standard deviation of weights and calculate the change in weight

  How should marginal cost vary its original output and price

Modifying a product to increase its "value added" benefits customers and can enhance supplier profits. For example, suppose an improved version of a product increases customer value added by $25 per unit. (In effect, the demand curve undergoes a p..

  What level of safety stock should be maintained

The purchasing manager for a firm is trying to determine what the safety stock should be for a particular product. She has developed the following table, which gives the distribution of demand during the lead-time and the probabilities.The carryin..

  What is the equilibrium interest rate

What is the equilibrium interest rate? d. What happens to the interest rate if the money supply increases from 20 to 30? Illustrate your answer graphically. What happens to the interest rate if nominal income increases by 10%?

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