Compute the profit-maximizing output price and profits

Assignment Help Microeconomics

Reference no: EM13394315

A van conversion company has fixed capital and labor expenses of $1.2 million per year, and variable expenses averaging $2,000 per van conversion. Recent experience suggests the following annual demand for their products:

Q = 1000 - .1P

Where Q is the number of van conversions (output) and P is price.

Calculate the profit-maximizing output, price, and profits.

Assuming a parts shortage limits their output to 300 conversions per year, use the Lagrangian multiplier method to calculate the profit-maximizing output, price, and profits.

Calculate and interpret the Lagrangian multiplier.

Reference no: EM13394315

Questions Cloud

What supply chain management refers to and how it might : 500 words-all new content 2- referencesthe ceo asked you to have lunch with him and explain exactly how you in your

Write down effects of international trade to gdp domestic : assume that you have been appointed as the speaker of the house. you must deliver a speech about the current state of

Analyse the choices mnes have for handling international : analyse the choices mnes have for handling international trade payments. what are the main issues that affect their

Explain how do organizations attempt to improve their : michael porter was a business researcher who made popular the concept of a value chain that is common to most business

Compute the profit-maximizing output price and profits : a van conversion company has fixed capital and labor expenses of 1.2 million per year and variable expenses averaging

Research and apply the course theories to a real : human resource hr professionals face the challenge of demonstrating that the role that hr plays is critical to the

Explain how might leaders require to change leadership : using course theories and current multinational organizations that have locations in several countries convey your own

Calculate elasticities for each of variables explain : a manufacturer of computer workstations has estimated the following demand for its productr2 0.68see 786f 21.25the

Using regression analysis estimate consumption as the : data on electric power consumption in a midwestern town in billions of kilowatt hoursnbspincome in millions of

User Account

All Pages