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?

Reviews

Write a Review

Econometrics Questions & Answers

  Why did one measure increase while other measure decrease

Real GDP was $4,179 billion in year 1 and $4,848 billion in year 2. IN contrast, real GDP per capita in Year 1 was $19,261, but in year two it was only $19,162. Why did one measure increase while the other measure decreased

  Find some arguments pro and con self-regulation

Why is self-regulation by the audit profession in the US no longer in place?

  What is the equilibrium price of lattes

Suppose that, on and near the U.C. Sunnydale campus, the weekly supply curve for lattes is given by the equation Q = max(1000 P - 2000, 0) : nobody makes any lattes unless the price is above $2/latte, and for each $1 the price is above $2 an extra..

  What is that price and how many tickets will be sold

a. If the theater uses third degree price discrimination, what price will it charge for daytime tickets How many will be sold b. If the theater uses third degree price discrimination, what price will it charge for nighttime ticket How many will be ..

  Will john take a dangerous job if he is offered per week

Suppose that John's preferences for wages and risk (a bad) are given by the utility function: U = W x e-Rwhere e represents the exponential function, W is the weekly wage, and R represents the type of job.

  Explain why output can diverge

To what extent do these models complement or contradict each other? Discuss.

  Consume nondurables out of permanent income

What would be the value of the multiplier derived from a naïve regression of consumption on income, and what would be the true value?

  Why the actual ex-post real interest rate is different

Suppose that David has $1000. In the beginning of a year he decided to put his money in a saving account with 5% interest rate per year. The CPI was 150 in the beginning of that year. He expected that the CPI would be 153 in the beginning of the n..

  What advice did intel ignore when they adopted this practice

What incentive conflict was being controlled by these loyalty payments? What advice did Intel ignore when they adopted this practice?

  Derive evrens short-run cost function with k

Evren wants to go into the donut business. For $500 per month he can rent a bakery complete with all the equipment he needs to make a dozen different kinds of donuts (K = 1; r = 500). He must pay unionized donut bakers a monthly salary of $400 eac..

  For the consumer price index cpi values shown calculate the

for the consumer price index cpi values shown calculate the rate of inflation in each year from 1930 to 1933.year 1929

  What is the short-run market supply function

A perfectly competeitive, constant-cost industry has a markey demand curve P=100-(1/5)Y where Y is the aggregate output in the market. Each firm has a U-shaped long-run average cost function with a minimum of $10. The efficient scale of production..

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!

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