Profit-maximizing price and quantity

Assignment Help Business Economics
Reference no: EM137163

Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:

Demand: P=1000-10Q
Total Revenue: TR=1000Q-10QZ
Marginal Revenue: MR=1000-20Q
Marginal Cost: MC=100+10Q
Where Q indicates the number or copies sold and P is the price in Ectenian dollars.

a. Discover the value along with quantity that maximizes the company's profit.

b. Discover the value along with quantity that would maximize social welfare.

c. Compute the dead-weight failure from monopoly

d. Suppose, in additional to the costs above, the director of the film has to be paid. Company is considering 4 options:

i). A flat fee of 2,000 Ectenian dollars

ii). 50% of the profits.

iii). 150 Ectenian dollars per unit sold

iv). 50% of the revenue

for each option calculates the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain.

Reference no: EM137163

Questions Cloud

Lean burgers drive : Lean Burger's drive through receives 20 customers in every ten minutes of business time.
Which colour would indicate acid-fast : If the sample were heated with Methylene Blue stain and counterstained with Carbofushin will you still be able to determine which bacterium were acid fast? If so, which colour would indicate acid-fast.
Steady-state natural rate of unemployment : If there were 2 million unemployed Thailand had a job-finding rate of 15% per month, how many people would lose jobs each month.
Which is the best molecule for storage : In metabolic processes of cell respiration and photosynthesis, prosthetic groups as in heme and iron-sulfur complexes are encountered. What do they do.
Profit-maximizing price and quantity : For each option calculates the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly.
Why water is known as polar solvent : Why water is known as polar solvent? How is hydrogen bonding involved in cohesive attraction of water molecules? Water molecules also attract other sorts of molecules, particulary ions.Why is this.
Explain and perform a chi-square test : Across between short-tailed mouse and a long-tailed mouse yields all short-tailed mice. Crosses among the F1 yield an F2 of 48 short-tailed and 22 long-tailed. Suggest the model to explain and perform a chi-square test of your results.
What type of dispersion pattern is the fungus exhibiting : Explain the general pattern of alternation of generation in plants. Explore why the gametophyte has been reduced to a part (or parasite) of the sporophyte as plants have evolved. Present and defend your finding. Please list sources used. Write in Tim..
If animals in a chamber were engaged in physical activity : If the experimental animals in a chamber were engaged in physical activity, how would this change the results of metabolism experiment.

Reviews

Write a Review

Business Economics Questions & Answers

  Sildavia a market for basket of goods and services

In the country of Sildavia, a market basket of goods and services cost $ 130 in 2003, $ 140 in 2004, and $160 in 2005. Based on this information and considering 2003 as the base year, inflation from 2003 to 2005.

  Break-even level of income

What would be the new equilibrium in this economy if Investment increased by $12.

  Aggregate demand induced recession

Compare the effects of an aggregate-demand-induced recession with an aggregate-supply-induced recession.

  Breakeven price for the toy truck

At present, the original manufacturer is deciding either they should continue production of toy truck.

  Natural employment deficit in terms

Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.

  Business of manufacturing dolls

The trade or business of manufacturing dolls and accessories

  Intra industry trade and inter industry trade

An increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.

  Think of any financial innovation in the past ten years

Think of any financial innovation in the past ten years

  Two identical firms in the economy

There are two identical firms in this economy with constant marginal costs equal to 1 and no fixed costs. Assume that firms set prices and follow a Bertrand model to do so.

  Technological improvement modify

Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.

  Von neumann morgenstern axioms

The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.

  No-trade equilibrium in foreign

The no-trade equilibrium in Foreign. How do the relative no trade prices of computers compare in Home and Foreign.

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