Zar island''s cost function

Reference no: EM13801827

Zar Island Gas Company is the sole producer of natural gas in the remote island country of Zar. The company's operations are regulated by the State Energy commission. The demand function for gas in Zar has been estimated as: P=1,000 - .2Q where Q is output (measured in units) and P is price (measured in dollars per unit). Zar Island's cost function is: TC = 300,000 +10Q . (a) in the absence of any government price regulation, determine ZAR Island's optimal (i) output level, (ii) selling price, (iii) total profits,

Reference no: EM13801827

Questions Cloud

Mission statement of the corporation : Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns. Assess how the vision statement and mission statement of the corporation influence its overall success.

What is applied behavioral science : What is Applied Behavioral Science

A proposal in the government budget set : A proposal in the government budget set forth in 2013 placed a limit on the total amount of savings that can be accumulated in tax-preferred retirement accounts to about $ 3 million (U.S. News and World Report, April 10, 2013). The White House has ar..

What additional awareness does a promotion budget of : In a seller's market even pathetic products are snapped up by desperate buyers because... a. first shift capacity is just sufficient to meet demand b. first shift capacity plus second shift capacity are greater than demand c. first shift capacity plu..

Zar island''s cost function : Zar Island Gas Company is the sole producer of natural gas in the remote island country of Zar. The company's operations are regulated by the State Energy commission. The demand function for gas in Zar has been estimated as: P=1,000 - .2Q where Q is ..

Calculate the herfindahl-hirschman index : Calculate the Herfindahl-Hirschman index (HHI) for each of the following industries. Which industry is the most concentrated? a. An industry with five firms that have the following market shares: 50 percent, 30 percent, 10 percent, 5 percent, and 5 p..

Assignment on macro social systems : Macro Social Systems

Why do producers have more interest in government regulation : Why do producers have more interest in government regulation than consumers do? a. Compare and contrast the public-interest and special-interest theories of economic regulation. What is the capture theory of regulation? b. Which theory of regulation ..

Evaluate us v japanese business negotiation culture : Evaluate US v Japanese business negotiation culture.

User Account

All Pages