Calculate the lerner index at the profit-maximizing

Reference no: EM13193963

Suppose that Neptune Music has the copyright to the latest CD of the heavy Iron Band. The market demand curve for the CD is Q=800-100p, where Q represents quantity demanded in thousands and p represents the price in dollars. Production requires a fixed cost of $100,000 and a constant marginal cost of $2 per unit.

a. What price will maximize profits?
b. At that price, what will be the sales?
c. What is the Maximum Profit?
d. Calulate the Lerner Index at the profit-maximizing scale of production.
e. Supppose the fixed cost rises to $200,000. How would this affect the profit maximizing price?

Reference no: EM13193963

Questions Cloud

State the equilibrium constant for the titration reaction : In an acid-base titration experiment, a 0.2 M solution of HCl was titrated at 25°C with a 0.05 M solution o KOH. Here the equilibrium constant for the titration reaction had this value:

State vessel was pressurized with hydrogen gas and heated : After the vessel was pressurized with hydrogen gas and heated to 80 degrees C, the monometer showed the initial pressure inside the "bomb" to be 77.2 atm. Assuming 100% yield, calculate the pressure that should be inside the "bomb" when the reacti..

State enough solid kht be added to the kcl-nacl solution : enough solid KHT be added to the kcl-nacl solution to ensure that some solid remain undissolved after 20 minutes stirring?

How fast is a rider rising : A ferris wheel with a radius of 10 m is rotating at a rate of one revolution every 2 minutes. How fast is a rider rising when the rider is 16 m above ground level?

Calculate the lerner index at the profit-maximizing : Suppose that Neptune Music has the copyright to the latest CD of the heavy Iron Band.Production requires a fixed cost of $100,000 and a constant marginal cost of $2 per unit.

State derive the irreducible representations : derive the irreducible representations for the normal vibrations of XeF4 and determine which are IR active, which are Raman active

Determine if people on earth are religious : Discuss the criteria you will employ to determine if people on earth are religious - in other words, what does religion look like and Describe three examples of behaviors or beliefs you observe that meet the criteria you established above.

Write an expression for the volume v : Let z denote the length of the side of the square being cut out. Let x denote the length of the base. Let y denote the width of the base. Write an expression for the volume V.

Which graph models golf ball production costs : The cost of producing golf balls is $6.00 plus $3.00 per golf ball. Which graph models golf ball production costs for up to six golf balls?

User Account

All Pages