Best Orange Juice Company is located in Oman. The cost function for total orange juice production (x) is given by C(q)=0.25x2. Their orange juice is demanded only in Muscat (Muscat demand is 100-2P) and Salalah (Salalah demand is 100-4P). Therefore, the total demand is x-x+x. If the company can control the quantities supplied to each market, how many should it sell in each location to maximize total profits? What price would it charge in each location?
Q: Q2. Suppose we have the following Demand and Supply equations. Here u₁t are IID (0,0%) and u2t are…
A: Demand and supply interact in markets to determine the equilibrium price and quantity of products…
Q: MR MC ATC $6 AVC $5 $4 $3 y* Based on this graph if the Average Revenue is 7.50, and the optimal…
A: Average total cost refers to the approximate total cost of production at different levels of…
Q: Question: Which of the following best describes the concept of opportunity cost in economics? A) The…
A: It refers to the value of resources that are used or given up to produce services and items.Explicit…
Q: In small collegetowns, it is not uncommon that the rental market is dominated by one or a handful…
A: In this monopolistic rental market, the equilibrium quantity and price can be found as…
Q: Suppose that x is a normal good and y is an inferior good. The Marshallian demand functions for…
A: One of the foundational ideas is the Marshallian demand function, which is named after economist…
Q: 28. (Figure: Three Firm Oligopoly in the Coal Mining Industry) Use Figure: Three Firm Oligopoly in…
A: A market that has a small sum of suppliers is referred to as oligopoly markets The interdependence…
Q: am. 131.
A: The objective of the question is to maximize the function f(x,y) = x - (x^2)/2 + y^2 subject to the…
Q: Three mutually exclusive alternatives may replace the current equipment. Year A B с 012345 -$20,000…
A: MARR stands for Minimum Acceptable Rate of Return. It is the minimum rate of return that an investor…
Q: At a price of $4, a gas station. sold 100 gallons of gasoline per week. When the price rose to $4.5,…
A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…
Q: Which of the following movements would be consistent with the government budget going from deficit…
A: The market for loanable funds (LF) consists of;savers: those who supply funds. It can include…
Q: 202 12 10 0 MC ATC -MR 10 Quantity (units) Figure 11.4.1 efer to Figure 11.4.1, which shows he cost…
A: A perfectly competitive market is a market structure which has the following characteristics: It…
Q: estion 8 Consumption and Investment $500 450 400 350 300 250 200 150 100 50 45 $50 100 150 200 250…
A: A private closed economy implies an economic system where all economic activities take place within…
Q: EOY 0 1 2 3 4 5 Cash Flow -200 80 50 60 70 150 for salvage value The payback period with 10%…
A: The objective of the question is to determine whether the payback period for the given cash flows…
Q: Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short…
A: In economics, a production function is a means of examining the relationship between input and…
Q: A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a…
A: Banks generate profits primarily through the intermediation process, where they accept deposits from…
Q: The Consumer Price Index (CPI) exhibits four known biases. Three of these biases occur, because the…
A: The consumer price index or CPI is a more direct method than per capita GDP of the standard of…
Q: Q7. Answer the following questions. (Use suitable graphs to explain your answers) (i) For the…
A: Engel demand curve represents the quantity demanded for a good at different levels of income keeping…
Q: Question 39 Consider the graph below. Which of the following occurrences will shift the supply of…
A: The supply of bonds in financial markets refers to the aggregate sum of bonds that are accessible…
Q: If the AD shortfall is $700 billion and the MPC is 0.95,(a) How large is the desired fiscal…
A: It refers to government actions aimed at increasing economic activity through increased spending or…
Q: 1) Why did you make the choices you did? What are the costs and benefits of these choices? 2)…
A: The main problem is managing your personal finances efficiently within the stipulated time frame as…
Q: consider a market for two differentiated products. demand for good 1 is d1 = 1-p1 + 1/4p2 and demand…
A: A duopoly is a market structure where only two firms exist in the market or industry producing a…
Q: In a perfectly competitive market, there are two types of consumers in the market with inverse…
A: The demand function is the mathematical relationship between the quantity of a commodity demanded…
Q: Labour Hrs/day Output Units/day AP MP TFC 450 11.84 120 41 500 16.67 A perfectly competitive firm…
A: Total production shows the total output that can be produced given the inputs. Average product is…
Q: 1. In Figure 7.1, panel (c) shows the case where Country 1 has higher output than Country 2 because…
A: Production function signifies the technical correlation between inputs and output associated with…
Q: Alter the interactive graph in order to witness how an upward shift of the MP curve affects the…
A: Monetary policy is the set of actions to control the nation's overall economic growth and money…
Q: **Practice** In order to alleviate their risks, they are considering a risk-sharing agreement.…
A: D. They will surely make the risk-sharing agreement.Explanation:To determine which statement is…
Q: Analyze, using the IS-LM model, the macroeconomic effects of an increase in savings in the short…
A: John Maynard Keynes' theories inspired the IS-LM model, which economist John R. Hicks developed in…
Q: Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they…
A: The production function of the Cobb-Douglas form is given as The production function for Hannah and…
Q: The following graph shows the economy in long-run equilibrium at the expected price level of 5 and…
A: Aggregate Demand Curve to theRightPrice Level to exceed the price level people expectedQuantity of…
Q: Teacher's Helper is a small company that has a subcontract to produce instructional materials for…
A: The total cost is the sum of the fixed cost incurred by the business and the variable cost of the…
Q: 60 Suppose the government, in an effort to avoid an increase in the deficit, votes for a budget…
A: A budget deficit occurs when a government's expenditures exceed its revenues within a specific…
Q: Question 3 What has been the average annual growth rate of U.S. real GDP per person over the 120…
A: America (or Country A) is the world's first democracy, with its fundamental values stated in the…
Q: Refer to Table III. Which quantity of output is the profit-maximizing level? Table III Quantity…
A: Total revenue is an important financial indicator that gives a quick overview of a business's…
Q: PLEASE SHOW WORK: Question 1 Consider an economy with 10,000 individuals. Of them, 5,000 each earn…
A: The Gini coefficient is widely used to determine the deviation of income or wealth among the given…
Q: Answer only correct A country had real GDP per person of 5800 in 2005 and has had average real GDP…
A: GDP basically refers to the total monetary value of all the final goods and services that a nation…
Q: Let's say that the Fed is concerned about recession. It would use [Select] doing so is [Select]…
A: The Fed refers to the short name for the Federal Reserve System, which is also the central bank of…
Q: The following graph shows the demand curve for uff, a useful commodity produced on the planet…
A: The "uff" commodity, whose demand has a strong connection to factors like price changes and…
Q: **Practice**
A: answer: 4.5Explanation:
Q: Suppose that the US Economy adopts a fixed exchange rate regime against the British Pound: BP-$1.3…
A: There is a line graph showing the British Pound (GBP) against the US Dollar (USD) on the exchange…
Q: Use the photo at exercise 14 to solve the problem below With the Firm Y response function…
A: In economics, the game of Stackelberg, two players with the leading and trailing firms function in…
Q: Unlike the Suez Canal, the Panama Canal is highly relevant for the US economy. A blockage of the…
A: The Panama Canal offers a shortcut for ships, and lowers travel distances and expenses, thereby…
Q: Please help me .
A: The objective of the question is to find the output level of beef (y) when the input level of corn…
Q: We have the following data for a hypothetical closed economy: GNP = $14,000 Consumption (C) = $8,000…
A: Here we have to calculate the private saving, government saving and value of investment expenditure…
Q: In the year 2020, aggregate demand and aggregate supply in the fictional country of Gizmet are…
A: Phillips Curve depicts a trade-off between unemployment and inflation, indicating that policymakers…
Q: If a project costs $120,000 and is expected to return $29,000 annually, how long does it take to…
A: To calculate the payback period, we divide the initial investment by the annual cash flow:…
Q: Nubia maximizes U(Y) = ln(Y) and is exposed to the lottery L = (800, -800; .5). An insurance policy…
A: In the context of insurance, a premium is the amount of money that an individual or entity pays to…
Q: Is the equilibrium at full employment, inflation or recession? Price level Aggregate Demand…
A: The objective of the question is to determine the state of the economy - whether it is in a state of…
Q: Canada Post is a government-controlled corporation that functions as the public postal service…
A: A demand function is a mathematical equation that expresses the relationship between the quantity…
Q: Use the figure to answer the following question Refer to Figure 10.2.1. Which graph illustrates the…
A: Since you have posted multiple questions, we will provide the solution to only the first question as…
Q: Discuss how the approach to monetary policy by the ECB has evolved overtime. Describe the key policy…
A: Central banks play an essential function in the worldwide financial system by controlling monetary…
Only typed solution
Step by step
Solved in 4 steps with 7 images
- Best Orange Juice Company is located in Oman. The cost function for total orange juice production (x) is given by C(q) = 0.25x2. Their orange juice is demanded only in Muscat (Muscat demand is xm= 100-2Pm) and Salalah (Salalah demand is xs= 100-4Ps). Therefore, the total demand is x=xm+ xs. If the company can control the quantities supplied to each market, how many should it sell in each location to maximize total profits? What price would it charge in each location?The market demand and supply functions for a type of carpet known as KP-7 have been estimated, respectively, as: QD = 160 – 6P, QS = – 100 + 20P. where P is the price (dollars per yard) and Q is the rate of sales (hundreds of yards per month). A typical firm in this market has a total cost function given as: TC = 100 – 22q + 2q2, where q is the firm’s output level. The optimal amount to produce for the typical firm is q =Market research for a certain ice cream company indicates that if the price per cup of ice cream is P50.00, the demand will be 1200 cups, whereas if the price is increased to P60.00, the demand will be 1100 cups. Therefore, at a production level of 200 cups of ice cream, the revenue generated by the company would be $130 for each additional cup of ice cream produced. Now, suppose it is known that the total cost of production of x cups of ice cream is given by C(x) = 3x + 25,500. (a) Find the value(s) of x at the break-even points. (b) Use marginal analysis to approximate the profit from the sale of the 500th cup of ice cream. Compare this value with the exact profit from the sale of the 500th cup.
- The demand function for small high-definition televisions is given by p = 9,000 − 55x, where p is the price, in dollars, that x televisions can be sold. The cost function (in dollars) to produce televisions is C = 3,500x + 2,000. (Simplify your answers completely.) (a)Find the revenue function, R. R = (b)Find the profit function, P. P = (c)Find how many televisions should be sold to maximize profit. televisions (d)What is the maximum profit (in dollars)? $The daily cost to manufacture generic trinkets for gullible tourists is given by the cost function C(x) = −0.001x2 + 0.3x + 500 dollars where x is the number of trinkets. a. As x increases, the marginal cost(A) increases (B) decreases (C) increases, then decreases. (D) decreases, then increases. b. As x increases, the average cost(A) increases (B) decreases (C) increases, then decreases. (D) decreases, then increases. c. The marginal cost is(A) greater than (B) equal to (C) less than the average cost when x = 100.A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500 per day when producing 15 sinks. The company has a daily demand function of q = 360 − p, where q is the number if laundry sinks demanded and p is te price of a laundry sink. (c) If production increases continuously, what is likely to be the average cost per sink?
- The FIA Formula 1 World Championship to be held during the 2021 Mexico City Grand Prix has a total cost function equal to CT = Q33 + Q2 + 125Q and an inverse demand function of P = 200−2Q. Now suppose there is a new company managing this event, so the total cost function becomes CT = 4Q. This new company intends to sell at two different prices depending on the place that the spectators occupy at the Hermanos Rodríguez Autodrome. For the Red Zone Boxes. The estimated demand will be q1 = 32−12p1 and for the Green Zone Boxes It will be q2 = 42 − p2. The number of tickets sold for the Red Zone and Green Zone will be: 15; 84 23; 16 15; 19 33; 45Suppose a company has fixed costs of $53,200 and variable cost per unit of 1/3x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2372 − 2/3x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) x = (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find maximum profit. $ (d) What price will maximize the profit? (Round your answer to the nearest cent.) $The demand function for a type of car is given by p(x) = − 1/5 x+5000. Find the consumers’ surplus if the price per car is set at $4500
- It is known that the demand function for a good is shown by the equation P = - 5Q + 110 and the total cost of production is C = 100 + 10Q + 5Q². Calculate the maximum profit rate of sales, the amount of profit and the selling price per unit.– A certain cleaning company cleans professional offices and believes its staff can clean up to 300 office units a week at a labor and supply cost of $58 per unit. Preliminary pricing surveys indicate that if that if the company charges $100 per unit, it will have clients for 300 units. For every $5 price increase it can expect a demand of 10 fewer units. Assume the demand, s, is a linear function of price p. Find an equation for demand as a function of price. Find the Revenue and Cost functions, both of which are dependent on price p. Write the Profit function. Using Desmos, graph the Revenue, Cost, and Profit functions on the same coordinate plane. Label the axes and the functions and use an appropriate scale. Find the break-even points graphically and confirm algebraically. Label the regions of profit and loss on the graph. Algebraically find the price that results in a maximum profit. Conclusion: A price of $_________ results in a quantity of _____________ units…Ptarmigan Company produces two products. Product A has a contribution margin of $84.00 and requires 8 machine hours. Product B has a contribution margin of $133.90 and requires 13 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places.