How many pairs should produce to maximize profit

Assignment Help Econometrics

Reference no: EM13237810

1. Suppose you are the manager of Sunglass Hut operating in a competitive market. Your cost of production is given by TC = 100 + Q*Q, where Q is the level of output and TC is the total cost. The marginal cost of production is 2Q. The fixed cost of production is $100.

(a). If the price of sunglasses is $60 per pair, how many pairs should you produce to maximize profit?
(b). What will the profit level be?
(c). At what minimum price will you produce a positive output?

2.Suppose that Densa Inc. falls 10 percent short of producing the profit maximizing output. Would a higher product price lead to greater output? Would an increase in input prices lead to a reduction in output?

Reference no: EM13237810

Questions Cloud

Explain the final volume of the solution : 15.0 grams of an unknown sugar was dissolved in water and the final volume of the solution was brought up to 1.00 L. The osmotic pressure of this solution was determined to be 2.44 atm at 25°C. Which of the sugars below was most likely the unknown..

Find speed of electron when it strikes second plate : A uniform electric field exists in the region between two oppositely charged plane parallel plates, find speed of electron when it strikes second plate

Explain what mass of solid sucrose : What mass (in grams) of solid sucrose (C12H22O11) would need to be added to 2000 grams of water to make an ideal solution with a boiling point of 102.9°C? (Kb for water is 0.512°C/m)

What is the net electric field at 50 cm : The nonconducting spherical shell is replaced with a thin metal spherical shell of diameter 8 cm and a charge of 1.00, What is the net electric field at 50 cm on the positive x axis

How many pairs should produce to maximize profit : Suppose you are the manager of Sunglass Hut operating in a competitive market. Your cost of production is given by TC = 100 + Q*Q, where Q is the level of output and TC is the total cost. The marginal cost of production is 2Q.

The ideal aqueous solutions have the highest vapor pressure : Which of the following ideal aqueous solutions would be predicted to have the highest vapor pressure

Calculate the time at which package fell off the back ramp : A cargo plane in flight lost a package because somebody forgot to close the rear cargo doors. You are on the team of safety experts trying to analyze what happened, Calculate the time at which the package fell off the back ramp

What do you feel are the benefits and pitfalls of recursion : What do you feel are the benefits and pitfalls of recursion? Share examples, experiences, and recommendations.

Compare the stock market boom : Compare the stock market boom of the 1990’s with that of the 1920’s. What fueled the markets in each decade? Who participated in the market in each decade? Why did each market’s proverbial “bubble burst”?

User Account

All Pages