Graph the inverse demand curve for memory chips

Assignment Help Microeconomics
Reference no: EM132786880

Intek Corporation produces memory chips. Using product sale data, the company's economist estimates the inverse demand function for the memory chips to be P = 200 - (1/4)Q. Intek is currently charging $140 per memory chip and the marginal cost is estimated to be $80 per unit.

-Graph the inverse demand curve for memory chips. Find the company's total revenue and profit given the current price level.

-Calculate the price elasticity of demand at the current price and quantity level. Interpret your results.

-Do you expect the total revenue to increase or decrease if price were to decrease to $130? Mark on the graph and calculate the price and quantity effect.

-Has the firm priced the memory chips correctly at P=$140 or do you recommend a different price? Explain

Reference no: EM132786880

Questions Cloud

Maximize profit in the short run versus in the long run : How is it possible for perfectly competitive firms to maximize profit in the short run versus in the long run? Provide an example from your own work experience.
What amount is debited to mac capital account : The remaining income or loss to be divided equally. If net loss for the current year is Php44,000, what amount is debited to Mac's capital account?
How did the growth of tobacco impact the land and culture : How did the growth of tobacco impact the land, culture, economy, politics, and social relations both in North America and throughout the Atlantic?
What are some stocks that are thriving during the pandemic : What are some stocks that are thriving during the pandemic?
Graph the inverse demand curve for memory chips : Intek Corporation produces memory chips. Using product sale data, the company's economist estimates the inverse demand function for the memory chips to be P = 2
What is the balance of miles capital account at the end : What is the balance of Miles' Capital account at the end of the year after net income has been distributed? What is Pine's share of the P180,000 net income?
CIS006 Concepts and Technologies of Artificial Intelligence : CIS006 Concepts and Technologies of Artificial Intelligence Assignment Help and Solution, University of Bedfordshire - Assessment Writing Service
Why someone might claim rock is dead in 2019 : Research this issue using reliable internet sources and/or resources through the library's website. Explain at least two reasons why someone might claim rock.
Calculate income elasticity for rice and chicken : If incomes rise from 500.00 dollars to 800.00 dollars, the quantity demand for rice has decreased from 20 kilo to 10 kilo and the quantity demand

Reviews

Write a Review

Microeconomics Questions & Answers

  How each of the factor contributed to the elasticity of good

Describe how each of the 4 factors contributed to the elasticity of the good. Is the product considered elastic, inelastic, or unitary elastic?

  Most suffers the costs of minimum wage laws

Which of the following groups most suffers the costs of minimum wage laws?

  Why is this a sensible proxy variable for poverty

The variable lnchprg is the percentage of students eligible for the federally funded school lunch program. Why is this a sensible proxy variable for poverty?

  What is the profit maximizing condition

The government wishes to reduce pollution against the maximum pollution extent of Z-bar. The firm produces pollution Z(q) for each q units of output.

  Ralph opened a small shop selling bags of trail mix

In the long run, will the price of trail mix rise or fall? How do you know? What will the price of trail mix be in the long run?

  What alternative measures are there to address the issue

Explain how the number of "discouraged workers" (unemployed workers leaving the labor force) affects the official unemployment rate.

  Discuss the following statements

The Phillips curve implies that when unemployment is high, inflation is low, and vice versa. Therefore, we may ex- perience either high inflation or high unemployment, but we will never experience both together.

  Define inflation rate and fiscal policy

Define the following terms in your words- Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, Fiscal Policy and Monetary Policy

  What is a market economy

How is socialism different from capitalism? Define the terms opportunity cost, scarcity, and resources. Please describe in detail an example of how each of these concepts have affected or currently affect your life.

  You have been hired in the finance department at a large

you have been hired in the finance department at a large metropolitan for-profit hospital. your duties are very

  Increasing a variety for commercial release

You are increasing a variety for commercial release. You are growing a seed block of 20 acres in Pullman

  A rich benefactor calls a meeting with two deans

A rich benefactor calls a meeting with two Deans. The benefactor wishes to make a $100 donation to the two schools, but requires the deans to engage in the following bargaining game to divide the money. First the Dean L offers the Dean R a porti..

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