Reference no: EM13283281
Question 6. The demand function is Q= 100 - .5P. The cost function is TC = C = 100 + 60(Q) + (Q)2
a. Find MR and MC
b. Demonstrate that profit is maximized at the quantity where MR = MC.
c. Derive the relationship between marginal revenue and the price elasticity of demand, and show that the profit-maximizing price and quantity will never be the unit-elastic point on the demand curve.
d. Using the information in (b), demonstrate that the profit-maximizing price and quantity will never be in the inelastic portion of the demand curve.
Question 7. Explain the competitive process when a firm earns a positive economic profit.
Question 8. Explain what is different between firms in monopolistic competition and firms in oligopoly. What does this difference mean for prices and quantities and for economic profit?
Question 9. A firm has estimated the following demand function for its product:
Q = 8 - 2P+ 0.10I+ A
Where Qis quantity demanded per month in thousands, Pis product price, I is an index of consumer income, and A is advertising expenditures per month in thousands. Assume that P+ $10, I = 100, and A = 20.
Based on this information, calculate values for: quantity demanded; price elasticity of demand; income elasticity of demand; and advertising elasticity. (Use the point formulas to complete the required elasticity calculations).
Question 12. The market supply and demand functions for a product traded on a perfectly competitive market are given below:
QD = 40 - P
QS = -5 + 4P
Based on this information, calculate the equilibrium price and quantity in this market.
Question 13. Now, suppose the competitive market in Exercise 12 is monopolized. Calculate the price and quantity for the monopolist.
References
Boyes, W. (2012). Managerial economics: Markets and the firm (2nd Ed.). Mason, Ohio: South-Western Cengage Learning.
|
What is ceo toback’s most pressing concern
: What is CEO Toback’s most pressing concern and how could he go about addressing this concern? Do you agree or disagree with the assessment of the concern and the plan to address this concern? Why or why not?
|
|
Integrated marketing communication problem
: Evaluate overall how politicians engaged in the 2008 or 2012 Presidential campaign have integrated their marketing message. Then, evaluate one specific candidate of your choice.
|
|
Purposes and goals of inmate reentry programs
: Research the purposes and goals of inmate reentry programs. Define and discuss the purposes and goals of inmate reentry as they relate to the ethical obligations prison administrators and government officials have to society.
|
|
Evaluate how ethical concerns in real estate appraising
: Evaluate how ethical concerns in real estate appraising may have contributed to the magnitude of the recent recession and how these concerns have changed the industry since 2009.
|
|
Firms in monopolistic competition and firms in oligopoly
: Explain what is different between firms in monopolistic competition and firms in oligopoly. What does this difference mean for prices and quantities and for economic profit?
|
|
Describe the features and benefits-target customer
: Take on the role of a product development manager. Develop a new toothbrush. Describe the features and benefits. What is the price? Who will be the target customer? Where will you sell the "new" toothbrush? Have fun and be creative with this assignm..
|
|
Select a product or service
: Select a product or service. Then select three different organizations that provide your selected product or service and compare the prices associated with your selected product or service. What is the difference between the prices among the differen..
|
|
A manufacturing plant instead of an apartment building
: Assuming the building was a manufacturing plant instead of an apartment building.
|
|
Killearn applies the equity method for its investment
: Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income , earned evenly throughout each year, was $598,000 in 2013, $639,000 in 2014, and $692,400 in 2015.
|