A recording company obtains the following information

Assignment Help Business Economics

Reference no: EM138140

Q. "Based on market research, a recording company obtains the following information about the demand and production costs of its new CD:
Price=1000-10Q
Total Revenue=1000Q-10Q^2
Marginal Revenue=1000-20Q
Marginal Cost=100+10Q
(P is the price in cents)

a. Find the price P and quantity Q that maximizes the company's profit
b. Find P and Q that would maximize social welfare
c. Calculate the deadweight loss from monopoly
d. Suppose, in addition to above costs, musician on the album has to be rewarded. Company is considering 4 options.

Reference no: EM138140

Questions Cloud

Congresswoman gaga represents a state : Congresswoman Gaga represents a state in which several firms fabricate furniture. She needs to impose tariffs on all imported furniture.

Cash demand does not depend on the expected rate : How do your previous answers change in the special case where cash demand does not depend on the expected rate of inflation

The wilcoxon signed rank statistic : The Wilcoxon signed rank statistic, The mean for the Wilcoxon signed rank test and The P-value for the Wilcoxon signed rank test

The determinants of supply : Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease.

A recording company obtains the following information : A recording company obtains the following information about the demand and production costs of its new.

Computers have an elastic demand : Pharmaceutical drugs have an inelastic demand, as well as computers have an elastic demand.

Evaluate the sum of the ranks for additive : One characteristic of billiard balls is their elasticity - the bounce they get when striking one another. A manufacturer of billiard balls is testing three additives to the basic plastic.

Marginal product of capital : The Marginal Product of Labor and the Marginal Product of Capital are given.

What would happen to the amount of economic investment : What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.

User Account

All Pages