User Account

All Pages

Find the inverse demand curve

Assignment Help Macroeconomics
Reference no: EM131263763

Suppose that a price setting firm has the following direct demand function:

Qd = 100-20P

  • Find the inverse demand curve. What is it's slope and its intercept?
  • Find the equation for Total Revenue.
  • Find the equation for Marginal Revenue.
  • What is the quantity where Total Revenue is maximized? How is this related to Marginal Revenue?
  • Calculate the own price elasticity of demand at the quantity where Total Revenue is maximized.
  • A decrease in price below $2.00 will do what to Total Revenue? To Marginal Revenue? Why? Hint: Drawing the two graphs (the one with D and MR drawn against Q and the second with TR drawn against Q might help.
  • Suppose now that the firm is a profit maximizing firm, and that MC = 2.5 + .025Q. Find the profit maximizing output and price. Calculate the own price elasticity of demand at the profit maximizing price and output.
  • Given your results, is there a difference between maximizing Revenue (part d) and maximizing profits (part g). Why?

Reference no: EM131263763

Questions Cloud

Encounter between natural environment and human civilization : Write a research paper about an encounter between the natural environment and human civilization sometime between the outbreak of the Bubonic Plague in the 14th century CE and the Chernobyl Nuclear Reactor Disaster in 1986.
Explain why modems are needed at each end of the line : Indicate whether a conference-call connection is better or may be worse than a single-party call if a digital switch is used (at the CO) instead of an analog switch. Explain your answer.
Change in consumer surplus due to the tax : Suppose that a market is initially in equilibrium. The initial demand curve is P = 90 - Qd.The initial supply curve is P = 2Qs. Suppose the government imposes a $3 tax on this market. What is the change in consumer surplus due to the tax?
Calculate percentage bandwidth that is used for guardbands : A satellite with twelve 36-MHz bandwidth transponders operates in the 6/4-GHz bands with 500 MHz bandwidth and 4-MHz guardbands on the 4-GHz downlink, as shown in Fig. 8-10. Calculate the percentage bandwidth that is used for the guardbands.
Find the inverse demand curve : Find the inverse demand curve. What is it's slope and its intercept? Find the equation for Total Revenue. Find the equation for Marginal Revenue.
Identify desired engagement levels of key stakeholders : Identify desired and current engagement levels of key stakeholders. Identify interrelationships and potential overlap between stakeholders. Identify at least 5 strategies you can use to engage your stakeholders.
What was the industrial revolution : Compare and contrast the Western Church and the Orthodox Church. Consider language, relations with secular rulers, the population served, the head of the Church, lives of the priests, etc.
Identify the point in the reading when you realized : Clearly state in your own words the "surprise ending" in the reading you selected. Clearly identify the point in the reading when you realized that there were elements in the reading that surprised you. Not all of the surprises come at the end.
What is a ponzi scheme : What is a Ponzi scheme? How was Madoff able to operate this for so long without detection - Provide some background on Madoff in terms of who he was and why he decided to engage in a Ponzi scheme. How could Madoff's Ponzi scheme been detected earli..

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