User Account

All Pages

Determine the resulting profit for clear vision

Assignment Help Macroeconomics
Reference no: EM131045997

In Box City, Clear Vision, Inc. has a monopoly as the only cable television carrier in the city. (Assume for purposes of this question that Clear Vision is not regulated.) Suppose that demand for cable service is given by P = 28 - 0.0008Q , where Q is total market quantity of units of service and P is price per unit of service. Assume that Clear Vision's short-run total cost function is given by TC = 120,000 + 0.0006Q2, and that Clear Vision's corresponding marginal cost function is given by MC = 0.0012Q .

(a) Find Clear Vision's profit-maximizing output and price. Determine the resulting profit for Clear Vision.

(b) Suppose that Box City imposes a (specific) tax of t = $1 per unit of service. Find Clear Vision's new profit-maximizing output, price, and profit. (Recall that in class we went over how a tax of this sort alters the total cost function and marginal cost function.)

Reference no: EM131045997

Questions Cloud

An automated teller machine : Jason, who has extremely poor vision, went to an automated teller machine (ATM) to withdraw $200 on February 1. Joshua saw that Jason was having great difficulty reading the computer screen and offered to help.
Demographic trends-samsung gear : This is where in your paper where you discuss the demographic changes that are going in the United States society. How might this impact your brand?
Estimate the probability of a loop forming if a broadcasts : Estimate the probability of a loop forming if A broadcasts an updated report within 1 second of discovering the A-E failure, and B broadcasts every 60 seconds uniformly.
Certification on the check-negotiated the check to griffin : Jones drew a check for $1,000 on The First Bank and mailed it to the payee, Thrift, Inc. Caldwell stole the check from Thrift, Inc., chemically erased the name of the payee, and inserted the name of Henderson as payee.
Determine the resulting profit for clear vision : (a) Find Clear Vision's profit-maximizing output and price. Determine the resulting profit for Clear Vision. (b) Suppose that Box City imposes a (specific) tax of t = $1 per unit of service. Find Clear Vision's new profit-maximizing output, price, ..
What the router does with a packet addressed : Suppose a router has built up the routing table shown in Table 4.14. The router can deliver packets directly over interfaces 0 and 1, or it can forward packets to routers R2, R3, or R4. Describe what the router does with a packet addressed to each..
Zebra bank inadvertently paid the amount : On April 1, Moore gave Pipkin a check properly drawn by Moore on Zebra Bank for $5,000 in payment of a painting to be framed and delivered the next day. Pipkin immediately indorsed the check and gave it to Yeager Bank as payment in full of his ind..
Give a diagram of the smallest network consistent with table : Suppose we have the forwarding tables shown in Table 4.12 for nodes A and F, in a network where all links have cost 1. Give a diagram of the smallest network consistent with these tables.
What messages would you incorporate into your campaign : How would you deliver your message(s) to most effectively reach the intended audience(s)? Consider the pros and cons of all forms of information dissemination. These include the Internet (websites, blogs, social media sites), print ads, TV and rad..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd