Compute the profit maximization level of price and output

Assignment Help Econometrics
Reference no: EM13219128

the industry demand function for bulk plastics is represented by the following equation p = 800 - 20Q where Q represents millions in pounds of plastic the total cost function for the industry, exclusive of a required return on invested capital is tc= 300+500Q+10Q2. A- if the industry acts like a monopolist in the dtermination of price and output, compute the profit maximization level of price and output. B. assume that this industry is composed of many (500) small firms, such that the demand function facing any individual firm is p=$620 compute the profit maximization level of price and output under these conditions (the industry's total cost function remains unchanged).

Reference no: EM13219128

Questions Cloud

Relationship between human service organizations : How does the unique relationship between human service organizations and the populations they serve impact ethical decisions? What are some ethical dilemmas that occur in human service organizations?
What precentage of sound energy is reflected : If the accoustic impedance of water is 1.49 and for steel is 42.1, what precentage of sound energy is reflected at a water-to-steel interface? 12.5%,86.8%,43.9% or 43.59%.
Numerator of the formula for the correlation coefficient : What is the logic behind using the sum of the products of deviation scores as the numerator of the formula for the correlation coefficient? Is this logic sound? Explain why or why not.
Eligibility-payment and billing procedures : Describe a factor that determines patient benefits eligibility. What are the appropriate steps to take when insurance does not cover a planned service? Relate these steps to the eligibility factor you identified and provide two examples of patient ch..
Compute the profit maximization level of price and output : the industry demand function for bulk plastics is represented by the following equation p = 800 - 20Q where Q represents millions in pounds of plastic the total cost function for the industry, exclusive of a required return on invested capital is ..
How would you as auctioneer-seller design an auction : If some auction participants for crude oil field leases have estimates that the oil in the ground is worth $1.2 million, $1.3 million, or $1.5 million with certainty; and other auction participants have estimates that the same oil field lease is w..
Civil war was an unprecedented mass conflict : The civil war was an unprecedented mass conflict in which victory went to the side that could develop a winning strategy that was consistent with its overall political objectives in fighting the war
What is difference between multiplexing and multiple access : What is the difference between multiplexing and multiple access?
Advantages of passing legislation quickly : Is it easy or difficult to pass a bill? What are some of the advantages of passing legislation quickly? What are some of the disadvantages?

Reviews

Write a Review

Econometrics Questions & Answers

  Compute the probability that earns more in a year

A corporation has 15,000 employees. Sixty-two percent of the employees are male. Twenty-three percent of the employees earn more than $30,000 a year. Eighteen percent of the employees are male and earn more than $30,000 a year.

  Do fields have large enough quantities of oil and gas

what are the highest and lowest payments from the writer that the beekeeper- farmer team will accept for the sixth day. Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept.

  What does iterated elimination of dominated strategies

Consider the "Odd Couple" game. Felix and Oscar share an apartment, the state of cleanliness of which is a public good. It takes 12 hours of work per week to make the apartment spotlessly clean, 9 hours to be livable, and anything less leaves the ..

  By what percentage would rise in the price reduce quantity

How do you calculate price elasticity of demand  If 50 Units of a good are demanded at a price of $1 per unit. A reduction in price to $0.20 results in an increase in quantity demand to 70 Units. Show that these data yield a price elastity of $0.2..

  Calculate vipsanas average fixed cost per day

Vipsana's Gyro House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a rent of $20 per day. Answer questions 17-10 accordingly.

  What open market policy would recommend to increase income

Say that investment increases by 100 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 3. If the money multiplier is 5, and each 5-unit change in the money supply changes the interest rate by 1 percent, what op..

  What is maxs most profitable course of action

Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with..

  What is the rate of economic growth

Now calculate the GDP deflator for 2011 and 2012 (assuming that 2011 is the base year). d) What is the rate of economic growth between the two years as defined byt he percent change real GDP. e) What is the rate of inflation between the two years?

  What is the marginal abatement cost

Plant B was constructed 2 months ago; it has a pollution abatement cost of 10c2. Assume that neither plant is initially engaging in pollution abatement. The per unit benefit to a unit of pollution abatement is constant at $1500. Unless told otherw..

  What will be industry price and the deviating firms profit

Suppose that two firms compete in quantities (Cournot) in a market in which demand is described by P = 260 - 2Q. Each firm incurs no fixed costs but has a constant marginal cost of 20. Suppose that after the cartel is established.

  Describe maximization of income

If the price of blue toy cars is $5 and the price of pink toy cars is $2, then which of the following consumers will make the same choices if their income is the same (assuming maximization of income) Gloria, utility is U(b,p) = b^2 * p

  What percentage of all bottles produced contains less

"DRUGS R US" is a large manufacturer of various kinds of liquid vitamins. The quality control department has noted that the bottles of vitamins marked 6 ounces vary in content with a standard deviation of 0.3 ounces. Assume the contents of the bot..

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