Calculate the profit-maximizing price and output

Assignment Help Econometrics

Reference no: EM131175992

1. The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. And its demand equation is Q = 4100 - 25P. The company is currently producing 1,000 pairs of shoes weekly and is considering expanding its output to 1,200 pairs of shoes weekly. To do this, it will have to lease another shoe-making machine ($2,000 per week fixed payment until the lease period ends).

2. What are the profit-maximizing price and output levels for Paradise Shoes? Describe and calculate the profit-maximizing price and output.

Reference no: EM131175992

Questions Cloud

Business process re engineering in the 1990s : How does the article suggest that business thinking and practice has evolved since the exhortations for business process re-engineering.

How time orientation affects marketing of sporting events : What communication messages about Australia as a tourist destination are most likely to appeal to middle class consumers from Canada?

How the monopolist might react : Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?

Paper that explains human resource functions : Write a 175- to 350-word short paper that explains how Human Resource functions relate to organizational development

Calculate the profit-maximizing price and output : 1. What are the profit-maximizing price and output levels for Paradise Shoes? Describe and calculate the profit-maximizing price and output.

Would you recommend the flat fee or the fee per bag : Would this have been the result of a change in demand or a change in the quantity demanded? Would you recommend the flat fee or the fee per bag? Why?

Define the concepts of servant leadership : Define the concepts of servant leadership, stewardship, and the servant leader. How would you say they are similar and interrelated

Group rewards over individual rewards : Why should a project manager emphasize group rewards over individual rewards?

What cultural differences do you share with this family : What cultural differences and similarities do you share with this family, and what might you need to learn more about to gain an understanding of the family's situation so you can appropriately assist its members?

User Account

All Pages