Determine the optimal price, Microeconomics

Assignment Help:

The largest public utility company in New South Wales (NSW) is the sole provider of electricity across all regions in the state. The monthly demand for electricity in NSW is given by the inverse demand function P = 1,000 - 5Q. The electricity company has set up two electric generating facilities: Q1 kilowatts are produced at facility 1 and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are given by C1(Q1) = 10,050 + Q12 and C2(Q2) = 5,000 + 2Q22, respectively.

a. Determine the profit-maximising amounts of electricity to produce at the two facilities.

b. Determine the optimal price.

c. Determine the utility company's profits.


Related Discussions:- Determine the optimal price

Marginal Revenue, How do you calculate marginal revenue, and monopolistic p...

How do you calculate marginal revenue, and monopolistic profit?

Monopsonist labour market, what are the advantages of a monopsonistic labou...

what are the advantages of a monopsonistic labour market

Development administration, Development Administration: Since the Gove...

Development Administration: Since the Government has been entrusted to manage economic and business activities, it was found difficult to manage the economic policy with the t

Pure competition and efficiency, Allocative efficiency criteria are satisfi...

Allocative efficiency criteria are satisfied by the competitive model.  Because P = MC, in each market in the economy there is no over- or under- allocation of resources in this ec

Economic model and assumptions, what is economic model and role of assumpti...

what is economic model and role of assumptions in it.

Rationale for government intervention, Rationale for government interventio...

Rationale for government intervention There are six major functions the government can perform in an economy. 1. The government provides a legal and social framework within which

Economics, What happens when oil eventually runs out?? can''t we just pay ...

What happens when oil eventually runs out?? can''t we just pay doctors and nurses more money?? The unemployed should get off their backsides and get a job??

Theory of demand, THEORY OF DEMAND: The  consumer behaviour under indi...

THEORY OF DEMAND: The  consumer behaviour under indifferencecurve approach where it is assumed that the consumer possesses a utilityfunction. The next most important theory th

Write Your Message!

Captcha
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