Determine what is the firms monthly output

Assignment Help Econometrics
Reference no: EM13221884

The Kentucky Pride Distillers make and distribute a premium-grade whiskey in two distinct markets, one in the Midwest and one in the South. Estimated demand functions in the two markets are Q1 = 150 - P1 Q2 = 200 - 2P2 while unit cost is ATC = 30 + 0.2Q where ATC is the firm's average total cost per six-bottle case (in dollars); Q is the firm's monthly output4 Q1 and Q2 - quantities demanded, in six-bottle cases; P1 and P2 - price per case.

 Assume that third-degree price discrimination is possible. Then find:

o The profit-maximizing sales level and price for each market.

o The maximum profit for the firm. o The price elasticity of demand for each market at optimum sales level.

 What is the firm's monthly output?

Reference no: EM13221884

Questions Cloud

Calculate the necessary parameter : Calculate the necessary parameter(s) for Best Buy's inventory policy of this high selling DVD? player.
State hydrogen atoms are in each molecule of the compound : An organic compound has a molar mass of 150.5 g/mol and contains 11.30% hydrogen atoms by mass. How many hydrogen atoms are in each molecule of this compound?
Identify the risk threshold zones and discuss : Identify the risk threshold zones and discuss what actions each requires in managing risk.
What is the role of inventory management : What is the Role of Inventory Management in Ford Motor Company's Production Line. Discuss with examples pertaining to Operations Management and Operations Management perspectives. (1500 -2000 words)
Determine what is the firms monthly output : The Kentucky Pride Distillers make and distribute a premium-grade whiskey in two distinct markets, one in the Midwest and one in the South. Estimated demand functions in the two markets are Q1 = 150 - P1 Q2 = 200 - 2P2 while unit cost is ATC = 30 ..
Discuss the ethical violations concerning cvs pharmacy : Discuss the ethical violations concerning CVS Pharmacy banning tabacco products in their stores. Does this make sense from a "market system" perspective? Will other major corporations follow suit? What propted them to make this decision? (750-900 ..
Explain the mol fraction of propane in the air : the minimum concentration of the gas, in air, below which there is too little fuel to support combustion; For propane, the LFL is 2.1 mol-%; What is the mol fraction of propane in the air at the stoichiometric concentration?
Identify the entities : Consider a real-world organization such as Walmart orKroger. (You should feel free toengage in additional research to gather relevant information to supplement this case description.)
Find if there dominant and dominated strategies : Firm 1 and firm 2 are movie producers. Each has the option of producing a blockbuster romance or a blockbuster suspense film. The payoff matrix displaying the payoffs for each of the four possible strategy combinations.

Reviews

Write a Review

Econometrics Questions & Answers

  What rate of return would investment produce for purchaser

A mine is for sale for $240,000. It is believed the mine will produce a profit of $65000 the first year, but the profit will decline $5000 a year after that, eventually reaching zero, whereupon the mine will be worthless.

  What term do economists use to describe second outcome

If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation What term do economists use to describe this..

  What is the equivalent annual worth of the costs

If the costs are expected to increase by $250 each year for the next 4 years (i .e., through year 5), what is the equivalent annual worth of the costs (years 1 through 5) at an interest rate of 18% per year? Please use P=A(P/A, i, n) or whatever y..

  Find tr and mr

Quantity.Price .Total Revenue. Marginal Revenue 0 55 10   50    20   45   30   40   40   35   50   30 Please find TR and MR

  Question based on joint probability distribution

If a random variable X is distributed chi square with n degrees of freedom then the expected value of X is n. Show that this is true.

  Which schemes would alter the deadweight loss from monopoly

Based on the market research, a recording company obtains the following information about the demand and production costs of its new CD: Price= 1,000-10Q Total Revenue=1,000Q-10Q squared Marginal revenue= 1,000-20Q Marginal Cost= 100+10Q

  How should manager of largo publishing house adjust input

The Largo Publishing House uses 400 printers (workers) and 200 printing presses to produce books. A printer's wage rate is $20 per hour and the price per hour of a printing press is $5,000. The last printer hired added 20 books (per hour) to total..

  What is dealers annual rate of return on loan transactions

Assume that you are going to buy a car work $25,000. You will be able to make a down payment of $3,000. The remaining 22,000 will be financed by the dealer. The dealer computes your monthly payment to be $547.47 for 28 months of financing.

  Why the government imposes a tax on domestic producers

Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. If the government imposes a tax of $3 per unit on domestic producers.

  Is this tax strategy successful in reducing smoking

Suppose the government places a $15 per carton excise tax on cigarettes in an effort to reduce smoking. Cigarette producers are required to pay this tax out of their revenues. Draw the supply and demand graph based on the original supply and deman..

  Calculate the rate of return represented by the cash flow

A $40,000 investment you made yields annual payments of $22,000, $14,000, $17,000, $25,000, and $38,000 at the end of the next 5 years respectively. Calculate the rate of return represented by this cash flow to three significant figures.

  Which program has the least damaging effect on gdp

Two policy programs are proposed: (1) eliminate the deficit by cutting government spending and (2) eliminate the deficit but raising taxes. Which program has the least damaging effect on GDP

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