Evaluate the price elasticity of demand in each submarket

Assignment Help Econometrics

Reference no: EM13201216

An energy supply firm has the following deman curves for both domestic(m) and commercial(c) consumers of its product: Qm=40-5Pm, Qc=60-10Pc. The total cost function for the firm (C) is described by the following equation: C(Q)=120+0.025Q^2, Where Q=Qm+Qc

(a) Dertermine the profit maximizing level of output to be produced and sold in each submarket.

(b) What price should the firm charge in each submarket?

(c) Evaluate the price elasticity of deman in each submarket and briefly comment on their relevance in the determination of the relative pirces in both markets.

Reference no: EM13201216

Questions Cloud

Explain solving systems of linear equations : Write a paragraph or two comparing and contrasting all methods of solving systems of linear equations with two variables. Explain which method you prefer and why.

Define determination of the relative pirces in the markets : An energy supply firm has the following deman curves for both domestic(m) and commercial(c) consumers of its product: Qm=40-5Pm, Qc=60-10Pc. The total cost function for the firm (C) is described by the following equation: C(Q)=120+0.025Q^2, Where ..

Compute the standard deviation of percentages : Based on this histogram, estimate the standard deviation of the sample of percentages. Carry your intermediate computations to at least four decimal places

Explain the types of economics systems : Explain how do the types of economics systems capitalism , socialism, and communism fall under : market , tradition, and command.

Evaluate the price elasticity of demand in each submarket : Dertermine the profit maximizing level of output to be produced and sold in each submarket. What price should the firm charge in each submarket. Evaluate the price elasticity of deman in each submarket.

State find the amount of work in foot-pounds : Find the amount of work in foot-pounds required to empty the trough by pumping the water over the top. Note: The weight of water is pounds per cubic foot.

A nuclear cooling tower is in the shape of a hyperboloid : A nuclear cooling tower is in the shape of a hyperboloid (that is, a hyperbola rotated around its conjugate axis). The equation of the hyperbola is (x^2/3600)- (y^2/6400)=1.

State how much higher is the red ball two seconds : Find a polynomial D(t) that represents the difference in the heights of the two balls. b) How much higher is the red ball 2 seconds after the balls are tossed?

What factors should the worker to take in consideration : the worker doing the mathematical operation by hand in 32 seconds, and with the computer application, the operation is doing in 16 seconds with a 50 % of improvement. (theoretic - experimental)/theoretical *100% is the used formula for the 50%

User Account

All Pages