User Account

All Pages

Calculate algebraically for equilibrium

Assignment Help Accounting Basics
Reference no: EM13768570

Robert's New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for the product is expressed as Q = 5000 - 25P where Q is the number of vacuum cleaners per year and P is in dollars. Cost estimation processes have determined that the firm's cost function is represented by TC = 1500 + 20Q + 0.02Q2.

Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary.

  1. What are the profit-maximizing price and output levels? Explain them and calculate algebraically for equilibrium P (price) and Q (output). Then, plot the MC (marginal cost), D (demand), and MR (marginal revenue) curves graphically and illustrate the equilibrium point.
  2. How much economic profit do you expect that Robert's company will make in the first year?
  3. Do you expect this economic profit level to continue in subsequent years? Why or why not?

Verified Expert

The first question required to use profit maximization in amonopolistic economy to find equilibrium price and output and theprofit made.

Reference no: EM13768570

Questions Cloud

Resources to use in researching a bankruptcy issue : What is the standard for a consumer debtor to obtain discharge of a student loan on the grounds of "undue hardship"? Describe the resources to use in researching a bankruptcy issue
Aggregate demand curve is negatively sloped : Aggregate demand curve is negatively sloped in part because of the impact of interest rates and the economy is in short-run equilibrium.
Issues in the automotive technology department : After introducing yourself to the secretary you share with a half dozen other, more senior, people, you decide to focus on hazardous material and hazardous waste issues since you just completed a great college course on those topics. You tour the ..
Financial markets impact businesses : Briefly describe one (1) way the U.S. financial markets impact the economy, one (1) way the U.S. financial markets impact businesses, and one (1) way the U.S. financial markets impact individuals.
Calculate algebraically for equilibrium : What are the profit-maximizing price and output levels? Explain them and calculate algebraically for equilibrium P (price) and Q (output). Then, plot the MC (marginal cost), D (demand), and MR (marginal revenue) curves graphically and illustrate t..
Analysis of the external environment : As part of the Strategic Business Plan, you have been asked to:
What is your position on development of robotics : What is your position on development of robotics. Some people believe that the use of robotics is advancing our society. Others contend that such developments are changing society negatively.
State marginal tax rate : Right after you sent the memo to your boss, you were given the news that your client has just moved to California and now is subject to a state marginal tax rate of 9.55%. Write a brief e-mail to your boss that explains:
Define the key terms related to the osi model : Define the key terms related to the OSI Model. Describe the functions of any hardware connectivity devices and tools listed.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Maintain the desired minimum monthly balance

How much cash, if any , must be borrowed to maintain the desired minimum monthly balance - Martian Company management wants to maintain a minimum monthly cash balance of $15,000.

  In 2004 roland who is single purchased a personal residence

in 2004 roland who is single purchased a personal residence for 340000 and took out a mortgage of 200000 on the

  Three different plans for financing a 5400000 corporation

three different plans for financing a 5400000 corporation are under consideration by its organizers. under each of the

  Morningside nursing homea not-for profit corporationis

morningside nursing homea not-for profit corporationis estimating its corporate cost of capital.its tax-exempt debt

  Computing income from the investee under equity method

Lindy Corporation owns a 40% interest in Belair Company, acquired several years ago at a cost equal to book value and fair value. Belair sells merchandise to Lindy for the first time in 2003. In computing income from the investee for 2003 under th..

  In the current year david and debbie wayland both

in the current year david and debbie wayland both successful physicians made a cash investment for a limited

  Partnership and corporate tax returns

Use the partnership and corporate tax returns for the practice sets titled, "Pet Kingdom" and "ROCK the Ages, LLC" that you prepared in Weeks 3 and 5 in order to complete this assignment.

  Contrast managerial and financial accounting

Objective: Compare and contrast managerial and financial accounting

  Fixed cost are 800000 and the verable cost are 75 of unit

fixed cost are 800000 and the verable cost are 75 of unit selling price what is the break even point.minium required

  Governmental activities in the statement of activities

Assuming no other changes, the effect, when moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement..

  Prepare a statement of revenues expenditures and changes in

the city of buffalo river had the following transactions related to the construction of a new courthouse. a 1107 20

  Prepare the adjusting entry to record bad debts expense

Sales revenues are $800,000 for 2012, sales returns and allowances are $45,000, and the allowance for doubtful accounts has a credit balance of $9,000. Prepare the adjusting entry to record bad debts expense in 2012.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd