User Account

All Pages

Graph jerry demand function

Assignment Help Microeconomics
Reference no: EM132473364

Jerry is a self-employed message therapist working from home. All of his costs are fixed, which means that to maximize his profit, all he needs to do is maximize revenue. Suppose that Jerry faces the following yearly demand function for an hour session: Q = 2,500 - 10P.

a. Graph Jerry's demand function

b. What is the profit-maximizing price Jerry should charge for his services? How many sessions will he do at this price? Show this point on the graph and shade the region that corresponds to Jerry's revenue.

c. What is the elasticity of demand at Jerry's optimal price and quantity?

d. For a generic revenue function, R(Q) = P(Q)*Q, the first derivative with respect to quantity (aka marginal revenue)

Reference no: EM132473364

Questions Cloud

Compute the Grinding Department cost of units transferred : Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May
Calculate the price elasticity coefficient for price level : Using the midpoints formula presented in the textbook, calculate the price elasticity coefficient for each price level, starting with the coefficient
What is the cash balance at the end of december : What is the cash balance at the end of December? Does the drop in cash during December mean that DER is heading for insolvency in the near future
What is the inventory cost of part at May : Using the FIFO method, what is the inventory cost of part 54169 at May 31, 2020? Using the weighted average cost formula, what is the inventory cost
Graph jerry demand function : What is the profit-maximizing price Jerry should charge for his services? How many sessions will he do at this price? Show this point on the graph and shade
What would be the appropriate revaluation entries : If the asset is assessed as having a fair value of S280 000, what would be the appropriate revaluation entries? Assume an entity has an item of plant
Transactions using the expenditure approach : Calculate the contributions to Exegol's GDP of current year transactions using the expenditure approach. Detail which components of GDP are affected
Determine the amount of the ending inventory : Concord Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory. Determine the amount of the ending inventory
Prepare sales budget and cash receipt budget : Universal Electric Company is a small, rapidly growing wholesaler of consumer, Prepare sales budget and cash receipt budget.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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