Firm profit-maximizing price-quantity-level of advertising

Assignment Help Business Economics
Reference no: EM131104329

The demand a monopoly faces is p =100-Q+A^.5, where Q is its quantity, p is its price, and A is its level of advertising. Its marginal cost of production is 10, and its cost of a unit of advertising is 1. What is the firm's profit equation? Solve for the firm's profit-maximizing price, quantity, and level of advertising.

Reference no: EM131104329

Questions Cloud

Fees banks can charge for non customer transactions : From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $10 million in withdrawals from other banks’ ATM machines. Based on this infor..
Explanation for why labor supply curve is upward sloping : Plotting the supply of labor In Denver, 140 people are willing to work an hour as hostesses if the wage is $10 per hour. For each additional $5 that the wage rises above $10, an additional 35 people are willing to work an hour. What is one explanatio..
Determine the pre-tax economic profit of this firm : Suppose you are considering starting your own consulting firm. You estimate if that if you did not start the firm, your starting salary at a job would be $40,000/yr. The revenues from this firm are expected to be $1,500,000. Determine the pre-tax acc..
Statistically significant in explaining variations in costs : A study of several grocery stores in the midwest yielded the following. Where q is the output of the store, measured in thousands of dollars of sales, and M is 1 if there is a regional warehouse located within 100 miles and 0 otherwise. The numbers b..
Firm profit-maximizing price-quantity-level of advertising : The demand a monopoly faces is p =100-Q+A^.5, where Q is its quantity, p is its price, and A is its level of advertising. Its marginal cost of production is 10, and its cost of a unit of advertising is 1. What is the firm's profit equation? Solve for..
The balance in prepaid insurance is a one year premium paid : (Adjusting Entries) Greco Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Other data:
What is the price elasticity of demand for each consumer : Let’s consider two smokers A and B who, following a 10% increase in the price of cigarettes, cut their smoking by 2% and 20% respectively. a) What is the price elasticity of demand for each consumer? Show all the steps of your calculation to get full..
Positive economic profit is to sell differentiated products : In perfect competition, economic profit is driven to zero as more firms join the market bidding prices down. One way for firms to maintain positive economic profit is to sell differentiated products. What sort of characteristics might a company empha..
Terms of promoting a strong and stable economy : There have been different economic philosophies promoted by the US government to deal with economic downturns. We've seen pump priming (Keynesian economics) during the New Deal and now supply side or trickle down economics during the Reagan era. Whic..

Reviews

Write a Review

Business Economics Questions & Answers

  Make for economy to sustain economic growth

What recommendations, i.e. future strategic direction, would you make for the economy (country) to sustain economic growth? Word limit 1000 words.  Learning Outcome: 4 & 5

  How the impact of this additional change in exchange rate

Use the green line (triangle symbols) to show the impact of this additional change in the exchange rate on the economy.

  Pareto preferred to the initial allocation

Illustrate diagrammatically the set of allocations that are Pareto preferred to the initial allocation.

  Identify an industry and market

Identify an industry/market that in your own understanding, can be described as a “monopolistically competitive” industry (market). Discuss/explain your choice.

  Illustrate what is included in determining any of measures

Illustrate what is included in determining any of measures of money supply. If spending increase is 80% and it increases by $40 billion, Explain how does that change GDP.

  Determine the value of total profit at maximum output level

Given the following total profit function: π = 144X - 3X^2 - XY -2Y^2 + 120Y -35 1. Determine the level of output of each commodity at which the firm maximizes its total profit 2. Determine the value of total profit at the maximum output level

  Most economists and politicians believed

Question 2.2. Before Keynes, most economists and politicians believed in a cyclically balanced budget.

  Illustrate what are the concepts gender planning

Illustrate what are the concepts gender planning, gender budgeting and gender mainstreaming mean.

  Figure out the cheapest way to produce toys

A company is trying to figure out the cheapest way to produce 36 toys. The company†TM s technology is given by:

  When measuring capital flows into and out of country

According to David Waring, when measuring capital flows into and out of a country those capital flows include only

  About international strategies-diversification strategies

Are international strategies always just a special case of diversification strategies that a firm might pursue? What, if anything, is different about international strategies and diversification strategies?

  Function of share and demand elasticities

Consider the model of Gaynor & Town (2012) in which hospitals choose quality with a fixed price. Recall that the model begins with a demand specification, qj = sj (zj , z\j ) × D(¯p, zj , z\j ), where the hospital’s market share sj is a function of i..

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