Reference no: EM13896624
Q(P)=50-P/10
C(Q)=Q^3-20Q^2+125Q
Q is greater or equal to 0.
(a) Calculate the firm's inverse demand function
(B) Calculate the firm's marginal and average cost function.
(c) Over what range of Q does the firm have economies to scale? Over what range of Q does it have diseconomies to scale? What is the firm's lowest possible average cost of production?
(d) Does the firm's profit maximization problem satisfy the global SOC?
(e) Find all values of Q that satisfy the first order condition for the firm's problem.
(f) Calculate the firm's profit maximizazing price and quantity. '
(g) Calculate the firm's maximized profit and revenue and cost that produce that profit
(H) Calculate the elasticity of demand at the profit maximizing point
(i) What is the firm's markup at the profit maximizing point? Confirm that this markup has the expected relationship to the elasticity of demand calculated in part (h)
(K) Let change the demand function by assuming demand is half of what it was before, in this new situation calculate the firm's inverse demand function, profit maximizing point and maximized profit.
|
Private practice needs van to carry crew and equipment
: A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3581 per year, paid at the beginning of each year, in which case maintenance is provide. What is the most she should pay f..
|
|
Calculate the elasticity of demand as a function
: Calculate the elasticity of demand as a function of Q. Does firm's profit maximization problem satisfy the global SOC? Using your answer 1,2 question, what is firm's profit maximizing markup?
|
|
Income elasticity of demand is expected
: Income elasticity of demand is expected to be _____.
|
|
What was the projects present worth and annual worth
: Katie's project has a five-year term, a first cost, no salvage value, and annual savings of $20 000 per year. After doing present worth and annual worth calculations with a 15% interest rate, Katie notices that the calculated annual worth for the pro..
|
|
Calculate the firms inverse demand function
: Calculate the firm's inverse demand function. Calculate the firm's marginal and average cost function. Find all values of Q that satisfy the first order condition for the firm's problem. Calculate the firm's profit maximizazing price and quantity.
|
|
Peanut butter and jelly
: Peanut butter and jelly are:
|
|
Suppose the mpc in an economy
: Suppose the mpc in an economy is .85 the apc is .09 and disposable income if 5 billion. What is the new consumption level when disposable income increases to 12 billion?
|
|
Demand for money depends positively on real income
: If the demand for money depends positively on real income and depends inversely on the nominal interest rate, what will happen to the price level today, if the central bank announces (and people believe) that it will decrease the money growth rate in..
|
|
Savings account at beginning of the year price level
: Assume you have 4000 in a savings account at the beginning of the year price level is 100 the account pays 7% interest annually. if the price level is equal to 115 at the end of the year, the real value of your saving is?
|