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Q: A firm has the following revenue and cost functions. TR = 120 Q – Q2 TC =1/2Q2 +30 Q + 10 Determine…
A: Profit is maximized when MR = MC. MR = dTR/dQ = 120 - 2Q MC = Q + 30
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- What are the likely consequences on the U.S. market for tobacco products for each of the events listedbelow? Which curve shifts, supply or demand?Please indicate the direction of shift. State whetherthe equilibrium price and quantity would increase,decrease, or stay the same. Show the changes usinga standard diagram with an upward-sloping supplycurve and a downward-sloping demand curve.a. The Food and Drug Administration classifiestobacco as an “addictive substance.”b. The Congress votes to raise the excise tax on alltobacco products.c. Hurricane Fran dumps 15 inches of rain onNorth Carolina and destroys 80 percent of thatstate’s tobacco crop.d. Sixteen states sue the major tobacco companiesfor billions of dollars because of tobacco-relatedcosts in their Medicaid programs.e. Medical evidence that more than two cups ofcoffee a day, considered by many to be a substitute for smoking, greatly increases the risk ofstomach cancerAssume you have your car broken down just before the weekend. You value your weekend trip as muchas v and if you have to stay home you get the zero utility. There are two dealerships in your town. Atthe beginning of the day they simultaneously choose a price for repair. Dealers know that when you cometo one of them and observe the price, you can always call to another dealer to make an inquiry about hisprice. The call is costless. The other dealer, however, can be occupied for this day. Assume, this happenswith probability which is a common knowledge (but the dealers do not know whether the other dealer isoccupied or not). Assume zero repair cost for the dealer and find a symmetric equilibrium of the game.741 Ny 7:0 Mond Content X + ultra/courses/_99030_1/cl/outline manipic cempo me manipic accompis. INIU Force Completion. This test can be saved and resumed later. BILLETTE Your answers are saved automatically. * Question Completion Status: QUESTION 1 The goal of the consumer is to maximize the total utility or satisfaction derived from their purchase choices, given the unique budget constraint. To calculate total utility of a given combination of T-shirts and movies, one would use the following approach: O a. For a given combination of T-shirts and movies, survey a group of individuals to determine an average for utils to be assigned to the number of T-shirts and movies. O b. For a given combination of T-shirts and movies, use Google to identify the number of utils associated with the number of T-shirts and movies and thenlum them. O c. For a given combination of T-shirts and movies, assign a number of utils to that combination. O d. Use utils as a measure of utility, assigning a…
- Price Keram H 1 1 4 Becky's D for Blueberries Demand Refer to the graph above to answer this question. The graph shows Becky's demand for blueberries which can be purchased in any quantities and sold at any price What is Becky's total willingness to pay for 6 kilograms of blueberries if the price of each kilogram of blueberries is $27 Multiple Choice O O O O O $12. Cannot be determined. $18. $6. $2“A direct inducement that offers an extra value or incentive for the product to thesales force, distributors, or the ultimate consumer with the primary objective of creatingan immediate sale. As an intellectual and dynamic marketer of Singer BangladeshLimited, explain with appropriate examples, what promotional tools you will throw topromote your Television in the rural areas of Bangladesh and how?fonsumer's demand xy for two different and the consumer's in come is $72. different Consumer's demand xy for chosen to maximize two the శ్రిందికి goods are x² lefility function The per respectively unit of , and the Consumer's in come is $7 x and y are $3and $4. 22,2 © telrite out the fagrangean for the Constrained maximization problem © Find the utility maximizing demands for both goods and he Larange multiplier, 2 o What is the change in consumer's ufility if income Changes from $72 to $75
- q= 2015 – 90p+p3 for O£ PE 40 q is the number of copres of the game that they caneypect to sell Cn thousants of cans) and pis the price of the game m dollors ) Find a prce elastiaity of demant queston Rrom this demant equatio n lallit E) *5kip this b> what wauk the pnce clasticity of demand that con be cxpcctcet if the gare 15 Sold for $ 25? s the demcind elastrc or melastic at this price? C.) what prce should the gane be sold at to get unit elasttcity of dnand? d) what quantity of games snoud be sot to get marmum revenue?heABCCompanyLtd.HasapproximatedthemarginalrevenuefunctionforoneofitsproductsbyMR=20x – 2x 2 .ThemarginalcostfunctionisapproximatedbyMC=81 – 16x+x 2 .Determinetheprofitmaximizingoutput,thetotalprofit,thetotalrevenuefunction,anddemandfunctionFigure 4.2 P3 P2 P1 A C Q Q2 Q3 Q4 Qs Qs Q7 Refer to Figure 4.2. The demand curve A indicates that O the smallcst price change will cause consumcrs to change their consumption by a large amount, O therc is no change in quantity demandcd as the price changes. consumcrs can purchase any quantity they want regardless of the price, Oithc smalcst price incrcasc wil.causc.consuners to switch to the producer with thc lowest
- Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demandFoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial priceCreative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demand
