What price and output will bruno choose to maximize profits

Assignment Help Microeconomics
Reference no: EM131774803

Question: Bruno owns an Italian gelato shop. The demand for gelato is q = 1500 - 250p, and his costs are TC(q) = q + 0.006q2. q is the number of scoops of gelato sold per week, TC(q) is Bruno's weekly total cost, and p is the price of a gelato.

(a) What price and output will Bruno choose to maximize profits?

(b) Bruno returns to college and asks hir cousin Marco to manage his gelato business. Marco faces the same demand and cost conditions as Bruno, but he decides to maximize revenue. What price and output should he choose?

Reference no: EM131774803

Questions Cloud

Calculate the required amortization for 2017 : Calculate the required amortization for 2017
List the cost estimation methods : List the cost estimation methods from the least precise to the most precise, with the least precise on top.
How many tours must rainbow sell every month : Rainbow Tours gives walking tours of Springfield. ow many tours must Rainbow sell every month to break even
Curtis corporation makes skis in two departments : Department A makes the frame and Department B adds the bindings and paints the skis. Monthly capacities and production levels are as follows:
What price and output will bruno choose to maximize profits : Bruno owns an Italian gelato shop. The demand for gelato is q = 1500 - 250p, and his costs are TC(q) = q + 0.006q2. q is the number of scoops of gelato.
Explain why adjusting entries are necessary : Explain why adjusting entries are necessary. Describe the 4 types of adjusting entries and provide a manufacturing industry example of each
Cost data for a relevant range extending : Flash Manufacturing Co. manufactures 1 GB flash drives (jump drives). Price and cost data for a relevant range extending to 600,000 units per month.
What is the amount of gabriel and ediths amt adjustment : What is the amount of Gabriel and Edith's AMT adjustment for itemized deductions in 2013
Calculate the profit maximizing output : Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs of beer for off-premises consumption.

Reviews

Write a Review

Microeconomics Questions & Answers

  Draw a set of indifference curves relating two bads

1)Draw a set of indifference curves relating two “bads” such as smog and garbage. What characteristics do these curves have?

  Determine the optimal size of the shopping center

Determine the optimal size of the shopping center (to the nearest 100 square meters) based on existing estimates of the demand for retail space.

  What would be effect of each of the given on the supply of

what would be the effect of each of the following on the supply of salsa in the united states? in each case identify

  What difference between a production function and isoquant

Faced with constantly changing conditions, why would a firm ever keep any factors fixed? What criteria determine whether a factor is fixed or variable?

  Calculate the elasticity of demand for university courses

As a policy analyst you have been asked to calculate the elasticity of demand for university courses. What is the price elasticity of demand for courses at the universities that increases their fees by 30%? Is demand for these courses elastic or i..

  Define economic incentives

Many less-developed countries suffer at times from "capital flight," as individuals with sufficient income, banks, and large companies convert their domestic.

  Explain the risk importer exporter lms and how to overcome

discuss the risk importer exporter lms and how to overcome it in each of the following economic conditions fluctuations

  Calculate the variable cost and average fixed cost

Calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC).

  Is this a one-tailed or two-tailed test

The following MINITAB output presents the results of a hypothesis test for the difference p1 - p2 between two population proportions. Is this a one-tailed or two-tailed test? What is the null hypothesis?

  How can individuals increase the flow of circular activity

Analyzing Visuals Look at Figure. How can individuals increase the flow of circular activity? What effect would this increase have on the other parts.

  Fundamentals of demand and supply

A. In 1996, many cows in Great Britain came down with "mad cow disease". As a result, the nations of European union banned the import of British beef.

  Decrease in the value added tax on restaurants

The French government decreased VAT (value added tax) on restaurants in November 2008 from 19.6 percent to 5.5 percent. However, an estimate shows that consumer prices have only decreased by 1.9 per cent.

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