Qthe xerxes company is composed of a marketing division and

Assignment Help Business Economics

Reference no: EM13354776

Q. The Xerxes Company is composed of a marketing division and a creation division. Marketing division packages and distributes a plastic item made by the production division. The demand curve for the finished product sold by the marketing division is
P0=200-3Q0

Where P0 is the price sold (in dollars per pound) of the finished product and Q0 is the quantity sold in thousands of pounds. Exclusive of production cost of the basic plastic item, the marketing division's total cost function is

TC0=100+15Q0

Where TC0 is the marketing division's total cost (in thousands of dollars). The productions division's total cost function is
TC1 =5+3Q1+0.4Q1^2

Where TC1 is total production cost (in thousands of dollars) and Q1 is the total quantity produced of the basic plastic item (in thousands of pounds). There is a perfectly competitive market for the basic plastic item, the price being $20 per pound.

a. What is the optimal output for the production division?

b. What is the optimal output for the marketing division?

c. What is the optimal transfer price for the basic plastic item?

d. At what price should the marketing division sell its product?

Reference no: EM13354776

Questions Cloud

Qconsider an employee who does not receive employer-based : q.consider an employee who does not receive employer-based health insurance and must divide her 700 per week in

Q1 the average 15- year- old purchases 12 cds and 15 cheese : q1. the average 15- year- old purchases 12 cds and 15 cheese pizzas in a typical year. if cheese pizzas are poorer

Qapex corporation has an equity cost of capital of 144 and : q.apex corporation has an equity cost of capital of 14.4 and a debt of 6 and the firm maintains a debt equity ratio of

Cooper toys sells a portable baby stroller called the tot n : cooper toys sells a portable baby stroller called the tot n trot. the past two years of demand for tot ntrots are shown

Qthe xerxes company is composed of a marketing division and : q.the xerxes company is composed of a marketing division and a creation division. marketing division packages and

Qthe wilson companys marketing manager has determined that : q.the wilson companys marketing manager has determined that the price elasticity of demand for its products equals

Q1 suppose that all the necessary conditions exist for the : q1. suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor

Q1 two 53 rm g blocks are held 30 rm cm above a table one : q1. two 53 rm g blocks are held 30 rm cm above a table. one of them is just touching a 50-long spring. the blocks are

Q1 use a hypothetical example to illustrate whether you : q1. use a hypothetical example to illustrate whether you agree or disagree with the following statement unemployment

User Account

All Pages