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Dyna-Rubber, man manufactures a high-performance tire called Sport 70. Fixed development cost for the current year is $600,000. Marginal costs for manufacturing and distribution are $63 per tire. Based on recent sales experience, the estimated demand curve and marginal revenue relations for Sports 70 are:P = $130 - $0.000125QMR = $130 - 0.00025Q
A. Calculate output, price, total revenue, and total profit at the revenue maximizing activity level (present your answer with relevant diagrams too)
B. Calculate output, price, total revenue, and total profit at profit maximizing activity level (again also with diagrams).
C. Compare and discuss our answers in part A and B.
What will be the hours of work in the hospital and in the clinic to maximize income? What will be the income earned by the physician per day? Show your work.
Wednesday the price changed to 1.8275. Compute your profit-loss in USD on Tuesday and Wednesday.
Plot both together on a supply-demand graph. Calculate the equilibrium P and Q, and show them on your graph as well. Also calculate CS (consumer surplus) at the equilibrium.
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Additionally, several other configurations were also estimated. The results are shown on the following pages. Based on this data, answer the following questions. Comment on the significance of time trend and seasonality.
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The percentage changes in quantity demanded divided by the percentage change in price.
Mention four key points from the reading assignments that were emphasized in the simulation. Find out how price elasticity of demand affects the decision making of the consumer and of the organization.
the grocery store next door provide an offers to double coupon night for Senior Citizens.
Physical capital, Natural resources, Human Capital and Technical Knowledge, should it be Government policy to subsidize the production or acquisition of all or these?
Assume that the market demand for broccoli is given by Q=1000-5P and the market supply of broccoli is given by Q=4P-80 where Q is quantity per year measured in hundreds of bushels an P is price in dollars per hundred bushels.
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