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QopyQatt specializes in printing business cards and résumé's, using the latest laser technology. After analysis of the business, the manager has determined that weekly demand can be approximated by Q = 25,000 - 1000P. The firm's cost function is C = 25,000 + 13Q + .002Q2, where Q is output per week.
a. Determine the profit maximizing price and output.
b. A former employee decides to sue QopyQatt, alleging employment discrimination. Although management claims innocence, they agree to settle out of court. The settlement requires QopyQatt to pay the employee $10,000 per month for the next year. Determine the optimal price and output for the shop under these new conditions
A firm with costs C(Q) = 1; 000 + 60Q + 0:1Q2 is able to price-discriminate between two groups of customers, with demands Q1 = 3; 000-2p, and Q2 = 350-0:5p respectively. How much does it sell to each group, and at what price
if you were to retire today, you would need a monthly income of $1600 in addition to the company pension, Canada Pension Plan, and Old Age Security payments you expect to receive. Today is your 22nd birthday and you plan to retire on your 65th bir..
A thousand dollars is invested for 7 months at an interest rate of 1% per month. What is the nominal interest rate What is the effective interest rate
When the price of squiggles is $700, 2200 units are demaded. When the price per unit of squiggles is $300, 4200 units of squiggles are demanded. 1) Use these two points and calculate the estimated demand function.
Suppose a supply increase causes the equilibrium to shift from the one above so that the equilibrium quantity changes from that in the diagram to an equilibrium quantity of 200. What is the elasticity of demand along the above demand curve
State what is its distribution under the null and why and explain the conditions under which you would reject H0
Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit. What is the excess burden of the tax
Suppose that P = 400 - 20Q and that there are 3 firms, each with a marginal cost of 30. Suppose that firms 2 and 3 merge. The merger allows the combined firm to lower its marginal cost to 20. Does the merger lead to a higher or a lower cournot equ..
A pallet recycler has offered to purchase pallets, which are of certain sizes and in good condition. The pallets that are in these sizes and in acceptable condition amount to half the scrapped pallets. The pallet recycler is offering to pay $1.00 ..
The eq'm wage is currently $7/hour, eq'm Q of labor is 35 hours. Using generic QLS and QLD labels (if necessary), show what is going on in this economy after the minimum wage goes into effect. How much unemployment results
Suppose that an automobile race track is built several miles from a small town. After the construction is completed it is discovered that the heavy roar from the cars regularly disturbs the 2,500 local residents between the hours of 10:00 PM and 1..
You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..
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