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A: Q = 1350 - 45p p = 30 - (1/45) Q TC = 0.1q3 - 3q2 +40q
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Find the profit-maximizing level of (a) output, (b)
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- A company has determined that the price and the monthly demand of one of its products are related by the equation D = (400 - P)1/2 , where p is the price per unit in dollars and D is the monthly demand. If the associated fixed costs are $1,125/month, and the variable costs are $100/unit, what is the optimal number of units that should be produced and sold each month to maximize the profit?Recently, an Internet service provider (ISP) in the United Kingdom implemented a “no-strings U.S.-style flat-rate plan” whereby its commercial subscribers can send and receive unlimited volume (measured in gigabytes) up to a cap of 10,000 gigabytes (per month) via their broadband Internet service for a flat monthly fee of £399.99. Under the old “metered plan,” Alistair Willoughby Cook sent and received a grand total of 3,500 gigabytes over his broadband connection and paid £399.99 in usage fees in a typical 30-day month. If all customers are exactly like Alistair, what is the impact of the flatrate plan on consumer welfare and the company’s profits? Explain.The market demand for a monopoly firm is estimated to be: Qd= 100,000 − 500P + 2M + 5,000PR where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2021. The average variable cost function is estimated to be AVC = 520 − 0.03Q + 0.000001Q2 Total fixed cost in 2021 is expected to be $4 million. The profit-maximizing price for 2021 is a. $260. b. $560. c. $520. d. $80. e. $100
- Compare the three alternative global pricingstrategies.Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, what is relationship between Claire's selling price per hoodie and profit margin? (Please choose from the image options presented, otherwise feel free to plot a graph of your own) Costs ($) Base Hoodie Cost $30 Craft Supplies to Design $10 Selling Website Service Charge 5%Under a marginal cost pricing option, the market price and quantity of gizmos would be: A. $64 and 15 units B. $99 and 75 units C. $43 and 230 units D. $54 and 230 units
- An airline company determines the price of a seat on a particular route between city A and city B to be p = 200 + 0.02n, where p is the airfare price in euro and n is the number of airplane seats sold per day. The travel demand for this route by air has been found to be n = 4700 – 20p a)Determine the equilibrium price charged and the number of seats sold per day, and the resulting revenues of the company.A firm produces two goods, A and B. Due to the product A’s fall in popularity near the end of last year, the estimated demand (units purchased) for A is 25% less than that of B. The selling price per unit is $30 for A and $20 for B. If the revenue target is $85,000 this year, how much of each of the two goods must be sold? (Round to whole number if necessary)The current fleet size of BlueSG in Singapore is 667 cars. With your proposed new pricing structure, estimate the annual revenue of BlueSG based on your assumption of number of rentals and average distance travelled per rental. Illustrate the change in revenue with price sensitivity of 5% and 10% reduction in per km charge resulting in corresponding increase of 5% and 10% in number of monthly rentals
- You have been hired as an economic consultant to assess the feasibility of building a new hockey arena in the city of Saskatoon. The demand curve for attendance at the new arena per game is given by P = 100 – 0.005Q and average attendance per game (35 home games) is optimistically forecast to be 12,000; the demand curve for other entertainment goods which are thought to be substitutes for basketball games is given by P = 1500 – 0.01Q and an estimated total of 100,000 tickets per year are sold for these events. Per capita income in Saskatoon is currently estimated to be $40,000 per year, which is forecast to rise to $40,100 after stadium construction is completed (local population = 600,000). The income multiplier is thought to be 1.2. Construction costs for the new arena are budgeted to total $175 million with annual arena maintenance costs of $5 million. The city will pay for the annual maintenance costs for the first three years of arena operations. The market rate of interest is 2%.…The demand function for a manufacturer's product is D = 91 - 9p , where D is the number of units and 'p' is the price per unit. The value of D that will achieve maximum revenue is _____ units.A company produces an electronic timing switch that is used in consumer and commercial products. The fixed cost is $70,000 per month and the variable cost is $80 per unit. If the selling price per unit is p = $170 − 0.01(D), calculate the following: a) The optimal volume for this product (Demand)? b) The value of selling price per unit at the optimal volume calculated in part a for this product ?