Determine the residual demand function that roach motors

Assignment Help Microeconomics
Reference no: EM132500156

Roach Motors is the dominant used-car dealer in a small Midwestern city. After paying $50,000 for overhead, Roach Motors' cost per car is $500. There are 4 other small used-car lots in this town, but since they are not large enough to purchase cars through the same discount sources as Roach, each firm faces the cost function c(q) = 5000 + 700q +5q2. The demand for used cars is q = 300 -p/10.

a. Determine the residual demand function that Roach Motors is facing in this market.

b. At which level of output will Roach Motors' maximize its profits?

c. How many cars will each of the follower firms supply?

Reference no: EM132500156

Questions Cloud

Why strategy would be effective for english language learner : Choose one strategy from your required reading that you would utilize to teach vocabulary. Explain why this strategy would be effective for an English language.
Surgical mask for the corona viruus : At type of good is PPE Surgical mask for the corona viruus. Is it a Normal or inferior good Why?
Explain the microeconomic principals that have an impact : Explain the Microeconomic principals that have an impact on the management of a firm. In your answer, explain the importance of the assumptions
Research about the topic divorce : Intimate Relationships include Levinger's Barrier Model ; Karney and Bradbury's Vulnerability- Stress- Adaptation Model ; Results from the PAIR Project
Determine the residual demand function that roach motors : Determine the residual demand function that Roach Motors is facing in this market. At which level of output will Roach Motors' maximize its profits?
Define specific ideas for project-based learning activities : Create a 10- to 12-slide presentation with specific ideas for project-based learning activities to create learning environments that support individual.
Consider an exchange economy with two goods : Consider an exchange economy with two goods (x and y) and two agents (a and b). Agent a has preferences represented by ua(xa, ya)
Why one of these amounts is higher than the other : What is the technical term for this amount? Give economic intuition for why one of these amounts is higher than the other.
What would you define as the unit for analysis : In analyzing the recordings, what would you define as the unit for analysis? Why? How many data units (in rough estimates) are you likely to get based on this.

Reviews

Write a Review

Microeconomics Questions & Answers

  How the new services will impact revenue

You are a staff member in finance department at Nouveau Health, whose sole responsibility is to advance success of the organization through assisting in planning, finance management. How the new services will impact revenue?

  Why socrates claims that he knows that death is not an evil

Why Socrates claims that he knows that death is not an evil? Socrates would agree most with which of the following claims about wisdom?

  Is there a unusually small number of cases among asian women

Suppose the expected number of breast cancer cases among a large number of 45- to 49-year-old women in this study who were followed for 7 years is 149, while the observed number of cases is 107. Is there an unusually small number of cases among As..

  What are some of the issues that factor into the fluctuation

What are some of the issues that factor into the fluctuation of markets, both on a domestic and global level? How does this affect us on a daily basis?

  Explain refusing credit to a good moral risk

Discuss the difference between refusing credit to a good moral risk with bad finances in a poor economic environment and refusing credit to a bad moral risk.

  Analysis the number of buyers and their relative sized

Analysis the number of buyers and their relative sized.

  When will company revenue increase

Management attributes the increase in revenues to a 137 percent increase in shipments, despite a 17 percent drop in the average blended selling price of its line of phones. Given this information, is it surprising that the company's revenue increa..

  Write a paragraph about profit in detail

The assignment is to find a news article that is about a microeconomic topic that we have covered during this class. The article can be from the internet.

  What happened to monetary targeting

What does 3i (Investors in Industry) provide? What are Eurobonds? What happened to monetary targeting in the mid-1980s?

  What price katrina candies should charge in order forcompany

Algebraically, determine what price Katrina's Candies should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.

  Why was clerk willing to offer a buy one get one free deal

The clerk answered, "I can't do that." When the customer started to leave the store, the clerk hastily offered, "However, I am authorized to give you a 40 percent discount on any pair in the store.

  What is the equilibrium outcome in the game?

What is the equilibrium outcome in this game?

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