Decide the optimal price and quantity for the firm

Reference no: EM13686981

Veronica Martz has determined that demand for her Derby lunches is given by Q= 150-0.4P and a cost equation given by C= 80+5Q.

1) Decide the optimal price and quantity for the firm. (Price should be calculated to nearest cent. Example: $ 5.43 must not be rounded to $ 5.00.)

2) Presume that costs change to C= 50+10Q. Decide the new optimal price and quantity. Describe why the results differ from those in part a.

Reference no: EM13686981

Questions Cloud

How much current must run through the wire : A student attempts to "levitate" a piece of current-carrying wire using the Earth's magnetic field (55 T). How much current must run through the wire so that the magnetic force balances the weight of the wire

Calculate how much current is required to make the field : Calculate how much current is required to make the field at the center of a current loop comparable to the magnetic field near one of the poles of a permanent magnet

Are they homogeneous in income and prices : Presume David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x;y) = lnx + 2lny (MUx = 1=x;MUy = 2=y).

Evaluate what is the net force on the roof : If wind blows at 44 m/s over a house, what is the net force on the roof if its area is 190 m2 and is flat

Decide the optimal price and quantity for the firm : Veronica Martz has determined that demand for her Derby lunches is given by Q= 150-0.4P and a cost equation given by C= 80+5Q. Decide the optimal price and quantity for the firm. (Price should be calculated to nearest cent. Example: $ 5.43 must not b..

Can she rely on the business judgment rule in this situation : She arranges with the company's bank to transfer an amount of $65,000 from the company account into a personal bank account held by her in her own name. She uses the funds to finalise some outstanding personal debts.

What is the resistance of this new cable : A metal wire of resistance R is cut into five equal pieces that are then placed together side by side to form a new cable with a length equal to one-fifth the original length. What is the resistance of this new cable

Price of the good itself is a change in quantity supplied : If there is an alteration in the price of an input utilized to produce a good, why is that a change in supply when an alteration in the price of the good itself is a change in the quantity supplied?

Draw a supply and demand diagram of a commodity : Draw a supply and demand diagram of a commodity you buy every day for your own consumption or a hypothetical commodity, say X, and show the equilibrium price and quantity demanded and supplied in the diagram.

User Account

All Pages