Plot the appropriate short run and revenue curves, Econometrics

Assignment Help:

Plot the appropriate short run and revenue curves ( you may need more than one diagram, and tables) to determine at which price and output levels "Draw Ltd", would achieve:

  • maximum profit (or minimum loss)
  • break even
  • output maximum
  • total revenue maximum

 

Available Output, Cost and Revenue Data

Econometric evidence on the level of company productivity suggests that the most efficient short run method to produce Q output of pencils is with full time workers L=0.0202 x Q.

The accountant has found that the cost of a worker in the short run is W=21972.133, the rent of the buildings is 245, whilst other capital costs are 128.

Statistical analysis by the sales/marketing team also finds that the inverse demand curve for the firm is given by:  P= 1778.76- 24.705Q,

where Q is the quantity demanded and P is the price of pencils set by the firm. Note for the time period of that analysis all other market conditions were fairly constant.


Related Discussions:- Plot the appropriate short run and revenue curves

Identify the parameters of this model, Consider a Simple Linear Regression ...

Consider a Simple Linear Regression Model (SLRM) of the form y= a1+a2X+e where e ~  N(0,σ 2 )(Use the assumptions outlined in our class and available for review in the lecture note

Determine the demand functions, The town of Dusty View, Saskatchewan has on...

The town of Dusty View, Saskatchewan has only two residents - Justin and Sarah - and has a water supply shortage in the summer. The municipal water utility charges a break even pri

Macro econometrics.., (b) Suppose that the initial conditions are as follow...

(b) Suppose that the initial conditions are as follows: y0 = 0 and et = 0 for t= 0. Impose the initial conditions in order to find the general solution.

Production, Factor that affect the volume of production

Factor that affect the volume of production

Calculate the sample mean-variance-skewness , The tab-delimited text file c...

The tab-delimited text file contains daily stock prices for the Brazilian petroleum company Petrobras from 31 December 2008 to 31 December 2009. The data were obtained from yahoo f

What is the npv of the project, You are considering a new line of consumer ...

You are considering a new line of consumer products. You expect revenues of $14 million in each of the next ten years, while expenses are half of revenues (all cash flows are assum

Ec, economic system

economic system

Surpluses at the equilibrium position, The inverse demand and supply functi...

The inverse demand and supply functions for a product are given as:  where P  is  price, Q  is  quantity  and  the  subscripts  d  and  show demand and supply, respectiv

Primal and dual lp problems, As in the model solved initially, the followin...

As in the model solved initially, the following is the LP model Maximize Z = $42.13*(x 11 + x 12 + x 13 + x 14 ) + $38.47*(x 21 + x 22 + x 23 + x 24 ) + $27.87*(x 31 + x

Measurement error, what are the causes,consequences and remedy of measureme...

what are the causes,consequences and remedy of measurement error?

Write Your Message!

Captcha
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