In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC=10Q²-5Q +20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 -2,000P. (a) Solve for the market clearing condition
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In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC=10Q²-5Q +20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The
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- 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.Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand function of the Marley market is given as QM=110-PM , and the demand function of the Paradis market is QP=30-PP . Wakanda’s total cost in producing vibranium is given as TC=100+10Q , where represents a ton of vibranium. 5. Compute the mark up price on each market and interpret the results.A construction company has determined its price-demand function for a certain product is given by C(x) = 200 - 0.5x and the total cost of the production of the product is given by C(x) = 1400 + 55x. a) What is the maximum revenue that the company can realize?
- In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC = 10Q2 − 5Q + 20 and a LRMC MC = 30Q3 - 10Q + 20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 - 2,000P. (a) Solve for the market clearing condition.A firm with market power faces the following estimated demand and average variable cost functions: Qd = 39,000 − 500P + 0.4M −8,000PR AVC = 30 − 0.005Q + 0.0000005Q2 where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. What is the profit-maximizing choice of output(hint: derive the total revenue function first based on the demand function and the formula TR=P*Q)? a. 0 units, the firm shuts down b. 8,000 units c. 12,000 units d. 16,000 units e. 10,000 unitsA firm has revenue given by and its cost function is R(q)= 3409-3q 1-3q² C(q) = 600 + 10q. level of output? What profit does the firm earn at What is the profit-maximizing this output level? The firm maximizes profit by producing (Enter your response as a whole number.) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $2,000 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192? Multiple Choice A. 0 B. 6 C. 10Consider an imperfectly competitive service provider, Muscat Automotive Repair Services (MARS), whose total cost of production is C = 30Q +0. 165Q2. Also, MARS faces two different market segments, A and B, whose demands can be linearly expressed as QA = 240 − PA and QB = 120 − 0.5PB . (Hint: the marginal cost is the slope of the total cost function). 4. If MARS decides to segment the market in accordance with the demands of groups A and B, find the profit-maximizing prices and quantities (PA, QA) and (PB, QB).5. What is the value of the consumer surplus for each group A and B, under this segmentation strategy?6. Draw the situation described in (4) and (5) above, clearly showing each group’s profitmaximizing price and quantity, and the areas that correspond to their consumer surpluses.7. Verify the inverse elasticity rule under each of the scenarios described (1) and (4) above.. An electricity producer has a constant marginal cost of production equal to $40 per megawatt. The residual demand for its electricity is given by P (q) = a−bq, where P is the price and q is the quantity of power generated by this producer. The producer knows the slope, b, but he vertical intercept of the residual demand curve, a is unknown. Assume A and B are greater than zero. If you get stuck, you may answer any of the following questions for special case where a = 80 And b = 0.5 for partial credit. (a) What is the marginal revenue, M R(q), for this producer? b) What is the optimal q for this producer? (c) What is the electricity producer’s optimal price? (d) What is the electricity producer’s optimal bid in a uniform price Auction? e) Suppose b is equal to zero. Would the producer have an incentive to submit a bid above its marginal cost? Explain.
- Question Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Now consider two cases (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies…ABC Company Limited is a new business established to produce tables (in units). The demand function for tables is given as 4? = 35 − 0.5?. It has been estimated that the total fixed cost is GH¢80 and average variable cost function is 3? − 51 + 320, where Q is number of tables produced ? and P is the price per table (in GH¢). Given this information, what is the total profit at the profit maximizing level of output, and what is the best pricing policy option?A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost functions are: TC = 5 - 0.5Q + 0.001Q2 where TC is total cost ($) and Q is output rate (units per time period). a] Determine the output rate that maximizes profit or minimizes losses in the short term.