In a market with n firms, the lifetime profit level per firm is 200/n. The fixed cost to enter the market is F=45. How many firms enter the market?
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- Your current prices are $311 in the southwestern region, $278 in the western region and $240 in the New England region. Your marginal cost is now $212.21. Given the predicted changes in the quantity demanded by region per problem 1 and using the stay even analysis %ΔQd = %ΔP/[%ΔP + ((P-MC)/P)], can you raise the price by 7% in any of the regional markets?A company estimates that the total revenue, R, in dollars, received from the sale of q items is ? = 3000 + ln(1 + 1000?^3) and the marginal cost is ??(?) = 0.05?^2 − 1.6? + 50. Calculate and interpret the marginal profit if q = 100.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.
- A firm has an annual demand of S units for a good whose purchase cost is £c per unit. Each order costs £a to place, and the cost of holding stock is b% of the average value of stock per annum. Determine the optimal order quantity. A local firm uses 2000 units of a particular component each year. The component has a purchase price of £4/unit, while the cost of holding stock is estimated at 20% of the average stock value. If the cost of placing each order is £12.50, find the optimal number of orders placed each year. Suppose the component supplier offers a discount of 2% on the purchase price if orders are placed in units of 1000. Is the discount worth accepting? Suppose that instead of a single figure you had been given a probability distribution for the number of units used each year. Indicate the effect on stock policy.. Please explain fully , the last part is also important to solve.calculate the Predicted yearly profit levelsTRUE OR false.. The firm should shut down its operations if the total revenue cannot cover the total variable cost
- You are an analyst at a chipmaking company that is part of a supply chain that involves chipmaking and memory drive manufacturing. Each unit of product created by the supply chain generates $7 in perceived consumer value and has a cost of $2. Your company is the only one that can make chips and there are many undifferentiated memory drive manufacturers. You expect your profit per unit to be close to: $7 $5 $2 $0A local defense contractor is considering the production of fireworks as a way to reduce dependence on the military. The variable cost per unit is $40D. The fixed cost that can be allocated to the production of fireworks is negligible. The price changed per unit will be determined by the equation p=$180-(5)D, where D represents demand in units sold per week. a.What is the optimum number of units the defense contractor should produce in order to maximize profit per week? b.What is the profit if the optimum number of units are produced?A local defense contractor is considering the production of fireworks as a way to reduce dependence on the military. The variable cost per unit is $40D. The fixed cost that can be allocated to the production of fireworks is negligible. The price changed per unit will be determined by the equation p=$180-(5)D, where D represents demand in units sold per week. a.What is the optimum number of units the defense contractor should produce in order to maximize profit per week? b.What is the profit if the optimum number of units are produced? Show handwritten solutions
- Given = TC = f(q) = 0.3q2 -105q + 120,000 What volume should be produced for minimum cost? What is the minimum cost?Appleway Industries produces apple juice and sells it in a competitive market. The firm’s manager must determine how much juice to produce before he knows what the market (competitive) price will be. Economists estimate that there is a 30 percent chance the market price will be $2 per gallon and a 70 percent chance it will be $1 when the juice hits the market. If the firm’s cost function is C = 200 + 0.0005Q2, how much juice should be produced to maximize expected profits? What are the expected profits of Appleway Industries?Q. The Ali Baba Co. is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q = 112,000 – 500P + 5M Where Q = number of carpets, P = price of carpets (dollars per unit), and M = consumers’ income per capita. The estimated average variable cost function for Ali Baba’s carpets is AVC = 200 – 0.012Q + 0.000002Q2 Consumer’s income per capita is expected to be $20,000 and total fixed cost is $100,0000. a. How many carpets should the firm produce to maximize profit? b. What is the profit-maximizing price of carpets? c. What is the maximum amount of profit that the firm can earn selling carpets? d. Answer parts a through c if consumers’ income per capita is expected to be $30,000 instead Please answer d only.
