Find the profit maximizing output and price

Reference no: EM13221366

Suppose Gatorhaus is a monopoly on all SFSU monogrammed items. The inversedemand curve the store faces is given by P=270-Q and its cost function is C(Q)=4Q2+100.

a) Write down the revenue function for Gatorhaus and find the Marginal Revenue.

b) Find its marginal cost.

c) Find the profit maximizing output and price.

d) Suppose the store's loading dock faces the entrance of a campus building and the discarded boxes and paper (till they are cleaned out at a particular time of the day) generates a negative externality on the students. The marginal cost due to externality is MCE= 2Q. Find the socially optimal output.

e) Suggest a policy/strategy that could induce the store to produce the socially efficient output.

Reference no: EM13221366

Questions Cloud

Remit the state sales tax amount to indiana : A. The buffalo wildcats, a minor league football team, received $3000 from a fan on June 1 for 2013 season tickets. The wildcats play 10 home games. on December, 2013, the end of the fiscal year, the wildcats had played 6 home games. make the origina..

What is the learning rate : what can you say about the profitability of the first and second contracts, and hence the bidding process in general?

Compute the mole fraction of methane : The stack gas contains C02 at a partial pressure of 80 mm Hg and no CO,O2, methane or ethane. Calculate the mole fraction of methane in the fuel and the dew point temperature of the stack gas.

How supply management play a role in competitive success : How can supply management play a role in the competitive success of an organization and also meet the needs of its internal customers?

Find the profit maximizing output and price : Suppose the store's loading dock faces the entrance of a campus building and the discarded boxes and paper (till they are cleaned out at a particular time of the day) generates a negative externality on the students. The marginal cost due to exter..

Explain the fermentation of surgars by the action of yeasy : A fuel with the potential to supplement if not replace gasoline, formed from the fermentation of surgars by the action of yeasy is called

Explain the barriers to effective implementation of training : Explain the barriers to effective implementation of training. How can these barriers be alleviated?

Difference between line personnel and staff personnel : What is the difference between line personnel and staff personnel? Why are the two groups so often in conflict? Do you think this would also be true in a virtual organization? How would you minimize the conflict problem?

What is the current share price : The required return on this stock is 12 percent, what is the current share price?

User Account

All Pages