Qajax inc is a monopolist the estimated demand function for

Assignment Help Business Economics

Reference no: EM13353780

Q. Ajax, Inc. is a monopolist. The estimated demand function for its product is

Qd = 120 - 0.8P + 12Y + 4A

Where P represents price, Qd represents quantity demanded, Y represents personal income (in thousands of dollars), and A represents advertising expenditures in hundreds of dollars.

Ajax's marginal cost function is as follows:

MC = 21 + 4Q

Assume Y = 3 and A = 3 and fixed costs = $1000

a. What is the inverse demand function? Consider the equation demand equation in the form P = a - bQd)?

b. What is the profit maximizing price and quantity of output for Ajax, suppose it is an unregulated monopoly? Illustrate its profits?

c. If fixed costs increase to $1200, what will happen to equilibrium price and quantity?

Reference no: EM13353780

Questions Cloud

Qthe economic analysis division of mapco enterprises has : q.the economic analysis division of mapco enterprises has estimated the demand function for its line of weed trimmers

Q1 monochromatic light from a distant source is incident on : q1. monochromatic light from a distant source is incident on a slit 0.750 rm mm wide. on a screen 2.00 rm m away the

Q1 frank gunter owns an apple orchard he employs 57 apple : q1. frank gunter owns an apple orchard. he employs 57 apple pickers and pays them 15 per hour to pick apples which he

Q1 a ship sets out to sail to a point 128 km due north an : q1. a ship sets out to sail to a point 128 km due north. an unexpected storm blows the ship to a point 148 km due east

Qajax inc is a monopolist the estimated demand function for : q.ajax inc. is a monopolist. the estimated demand function for its product isqd 120 - 0.8p 12y 4awhere p represents

1at what age do babies learn to crawl does it take longer : 1.at what age do babies learn to crawl? does it take longer to learn in the winter when babies are often bundled in

Q1 a shell fired from a cannon has a muzzle speed the speed : q1. a shell fired from a cannon has a muzzle speed the speed as it leaves the barrel of 800 fts. the barrel makes an

Q1 a consumer has 400 to spend on goods x and y the market : q1. a consumer has 400 to spend on goods x and y. the market prices of these two goods are px 10 and py 40. what is

Q1 a battery having an emf of 1110 v delivers 102 ma when : q1. a battery having an emf of 11.10 v delivers 102 ma when connected to a 61.0 load. find out the internal resistance

User Account

All Pages