How many tires should it produce in order to maximize profit

Assignment Help Managerial Economics

Reference no: EM13921602

Assume DurableTires Corp. faces the following demand curve, P = 250 - 0.1Q. If Durable- Tires' marginal cost is constant at $35, how many tires should it produce in order to maximize its profits? What's DurableTires' profit in this case? Should the elasticity of demand be greater, equal, or less than 1 at the profit-maximizing price and quantity? Explain

Reference no: EM13921602

Questions Cloud

General categories of juvenile justice statistical data : Data types are general categories of juvenile justice statistical data. The three primary sources for juvenile justice statistics or data types are official reports, self-report surveys, and victimization surveys.

Affected the choices and priorities on which alex focused : A number of years have passed since the writing of The Goal. Since then, developments in both technology and operations-management theory have changed the toolset that is available to a plant manager like Alex Rogo (e.g., lean, six sigma, the inte..

Draw an rea diagram : Draw an REA diagram, complete with cardinalities, for Joe's revenue cycle. Also, prepare an integrated REA for Joe's Ice Cream, prepare a table listing including table names, primary keys, foreign keys and non-key attributes

Essay that synthesizes different views on language presented : For this assignment, you are to write an essay that synthesizes the different views on language presented by the authors we've read thus far. What this means is that you are to (1) show the meaningful connections among them, (2) explain why those..

How many tires should it produce in order to maximize profit : How many tires should it produce in order to maximize its profits? What's DurableTires' profit in this case? Should the elasticity of demand be greater, equal, or less than 1 at the profit-maximizing price and quantity? Explain

Alliance supermarket and point-of-sale : Alliance Supermarkets has been using a point-of-sale (POS) system for some time to track its inventory. The system uses a laser scanner to read the universal product code (UPC) on each item at the checkout container. The UPC is a number that uniqu..

Derive and graph firmsshort-run and long-run supply curves : There is only one possible plant size for this operation; thus SRMC = LRMC = 4Q in this problem. Derive and graph the firm's short-run and long-run supply curves (on separate graphs).

Realizing my dreams and aspirations : It can impel me to steer my own course in realizing my dreams and aspirations without having to rely on others to make that determination for me.

Find the profit-maximizing output and price : Find the profit-maximizing output and price. Display this choice graphically. Is this outcome on the elastic, inelastic, or unitary elastic part of the demand curve? What are your profits?

User Account

All Pages