The external demand and marginal cost functions of the

Assignment Help Econometrics
Reference no: EM13378080

The external demand and marginal cost functions of the marketing divisions of the firm are, respectively:

Qm = 160-10Pm or Pm=16-0.1Qm and MR=16-0.2Qm

The marginal cost functions of the production and marketing divisions of the firm are, respectively:
MCp'=2-0.1Qp and MCm=1+0.1Q

A perfectly competitive market exists for the intermediate product at P=$6.

Determine algebraically the profit-maximizing outputs for the production and marketing divisions of the firm and the optimal transfer price for the intermediate product and the price of the final product.

Reference no: EM13378080

Questions Cloud

In 1984 walt disney brought in michael eisner a paramount : in 1984 walt disney brought in michael eisner a paramount executive as ceo. the firms board of directors agreed to pay
1 liquidity ratios edison stagg and thornton have the : 1. liquidity ratios. edison stagg and thornton have the following financial information at the close of business on
Suppose you are studying the market for shoes two events : suppose you are studying the market for shoes. two events take place simultaneously. first price of leather decreases
Why is this you would think that at lower prices a consumer : why is this? you would think that at lower prices a consumer would want to sell more of a product to make up in the
The external demand and marginal cost functions of the : the external demand and marginal cost functions of the marketing divisions of the firm are respectivelyqm 160-10pm or
In 2006 congress estimated that the cost of the iraq war : in 2006 congress estimated that the cost of the iraq war was approximately 100 billion a year. since the us govt was
Case questions1are the dfds in pe figures 7-1 and 7-2 : case questions1.are the dfds in pe figures 7-1 and 7-2 balanced? show that they are or are not. if they are not
1 according to the economic way of thinking why does : 1. according to the economic way of thinking why does cheaper used textbooks raise enrollment at csulb?a. cheaper used
Advanced analysis given the following diagrams q1 12 bags : advanced analysis given the following diagrams q1 12 bags. q2 7 bags. q3 19 bags. the market equilibrium price point

Reviews

Write a Review

Econometrics Questions & Answers

  Determine profit-maximizing price and level of production

You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 - 4P and C(Q) = 124 - 16Q + Q2. a. Find the inverse demand function for your firm's product. P = - Q b. Determine the profit-maxi..

  What was the rate of return on the 216 dollar million paid

Water damage from flooding related to hurricane Sandy in two northeastern Cities resulted in damages estimated at $216 million. As a result of the claimant payouts, insurance companies raised homeowners' insurance rates by an average of $118 per y..

  Calculate the amount of labor and the number of machines

A firm uses labor and machines to produce output according to the production function f(L,M)=4L raise to 1/2 M raise to1/2 where L is the number of units labor used and M is the number of machines. The cost of labor is Php.

  Find the long-run values of r-c-i-p and v

assume that the government decides toreduce spending and taxes and so G = T = 274.16. What value mustthe central bank set for M in order to keep the price levelconstant following the government downsizing

  Explain how would the individual demand curves shift

Suppose the quantity of good X demanded by individual 1 is given by X1 = 10 2PX + 0:01I1 + 0:4PY and the quantity of X demanded by individual 2 is X2 = 5  PX + 0:02I2 + 0:2PY a) What is the market demand function for total X (= X1+X2) as a function o..

  Calculate the equilibrium price and quantity of good x

a) Calculate the equilibrium price and quantity, and show them on a diagram. b) Assuming a price higher than the equilibrium price, anddetermine the excess supply.

  What is present worth of planned expenditures at an interest

a company expects to replace office machines and computer equipment at various times over the 6-year planning period. Specifically. The company expects to spend $21000 two years from now. $24000 three years from now. $10000 five years from now.

  Find the man-optimal stable matching

Find the man-optimal stable matching and Önd the woman-optimal stable matching. Are these matchings identical. 2. Consider a two-sided matching model with two men and two women. Their preferences are expressed by the table: P (m1) = w1 w2 P (w1) = m2

  Determine what is the equilibrium level of income

Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate, the interest rate that the Fed controls.

  What rate of interest is bank earning from loan transaction

A restaurant borrows $35,000 It will pay back over 5 year period with the following payment terms: 15%, 20%, 25%, 30%, 35% of the initial loan at the end of the first period, and so forth. a) What rate of interest is the bank earning from this loan..

  How many permits will each firm buy and sell

There are three industrial firms in Happy Valley. FIRM INITIAL COST OF REDUCING POLLUTION LEVEL POLLUTION BY 1 UNIT A 70 units $20 B 80 25 C 50 10 The government wants to reduce pollution to 120 units, so it gives each firm 40 tradable pollution p..

  What are the opportunity costs and the mc

Suppose you currently earn $23,000 a year. You are considering a job that will increase your lifetime earnings by $230,000 but that requires an MBA. The job will mean also attending business school for two years at an annual cost of $28,000.

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