Suppose the marginal-revenue function for spicy potato soft tacos at T-Bellios is (dr/dq)= 4000 − 2(3q + dq 4q^2); find the demand function for spicy potato soft tacos.
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- Suppose that the market demand curve of food delivery service in city A is given by P = 100 − Q, where P is the price and Q is the quantity. Currently there is only one firm. The incumbent’s cost function is given by TC = 40q, where q is the quantity provided by the incumbent. Suppose that there’s a potential entrant with cost function TC = 40qe + 100, where qe is the quantity provided by the entrant. The 100 is the sunk cost for developing the delivery system that is paid upon entering the market. a. If the entrant observes the incumbent providing qi units of service and expects this level to be maintained, what output will the entrant produce? b. At what price will the incumbent sell this output to keep the entrant out of the market?If, in a monopoly market, the demand function for a product is p = 160 − 0.10x and the revenue function is R = px, where x is the number of units sold and p is the price per unit, what price will maximize revenue?$ ______I need to second half answered. JointJuice produces a prepackaged joint support supplement for relief of joint pain with 180 tablets per bottle and operates in a perfectly competitive market. Basically, all the firms in this competitive market have technologies (production and cost conditions) that are the same as JointJuice’s. Suppose JointJuice’s total cost function is given by the following where q is JointJuice’s quantity of packages per day: C(q) = 250 + 6q + 0.1q^2 The market demand function for the output in this market is given by: Q = 1848 - 2P If there are 20 identical firms in this industry, find the market equilibrium price for the prepackaged supplements. Calculate JointJuice’s optimal output level and profits given the market price for the product. If JointJuice is typical of the firms in this industry calculate the firm’s long-run equilibrium output, price, and profit level. - answers for first half JointJuice is a prepackages supplement-producing firm. Suppose…
- Suppose Medic Inc. has a patent for a new pill called Relieve, which alleviates Restless Leg Syndrome (RLS) and is approved to sell its products in two separate markets – USA and Canada. The inverse demand function in USA is given by PU = 24 - QU and the inverse demand function in Canada is given by PC = 12 - 0.5QC. Therefore the total revenue function for USA is given by TRU = 24QU - QU2 and the total revenue function for Canada is given by TRC = 12QC - 0.5QC2 . Relive is sold in strip of 10 pills and the marginal cost of producing each strip is $6.00. PU = Price in USA in US dollars; PC = Price in Canada in US dollars; QU = Quantity sold in USA; QC = Quantity sold in Canada. What will be the profit from the US market? a. $72.00 b. $45.00 c. $81.00 d. $0.00Chillman Motors, Inc., is an oligopolist and faces the following kinked demand curve: The demand function can be expreseed algebraically as: P= 200-0.4Q when 0<Q<50 280-2Q when Q>50 Calculate the marginal revenue function facing chillman? Chillman's total cost function is TC=500+40Q+0.5Q2 Chillman maximizes profit by selling units at a price of $ per unit.JointJuice produces a prepackaged joint support supplement for relief of joint pain with 180 tablets per bottle and operates in a perfectly competitive market. Basically, all the firms in this competitive market have technologies (production and cost conditions) that are the same as JointJuice’s. Suppose JointJuice’s total cost function is given by the following where q is JointJuice’s quantity of packages per day: C(q) = 250 + 6q + 0.1q^2 The market demand function for the output in this market is given by: Q = 1848 - 2P If there are 20 identical firms in this industry, find the market equilibrium price for the prepackaged supplements. Calculate JointJuice’s optimal output level and profits given the market price for the product. If JointJuice is typical of the firms in this industry calculate the firm’s long-run equilibrium output, price, and profit level. Suppose the situation changes. JointJuice has its plant in Portland Oregon. The local government passes a new tax on…
- Firms often price their products by “marking up” a fixed percentage over average cost. To investigate the consequences of markup pricing, consider a single firm that faces the demand Q = 90 − P, for P ≤ 90. The firm’s TOTAL cost function is C(Q) = 20Q. In this example, would a 50% markup lead to a more or less efficient outcome than the profit maximizing rule in part Q3.2? How do you define efficiency? Explain.Consider the following problem: Demand: q = 100-p Retailer: marginal cost of selling r = 10 per unit Manufacturer: marginal cost of producing = 40 per unit Neither firm faces any competitor Suppose now that the retailer and the manufacturer are separate firms. Write down the profit function of the manufacturer if it sells to the retailer at w. You solved for the quantity the manufacturer will sell a minute ago, so you can use that in the profit function, and then you will have a profit function for the manufacturer that does not have p, but only has w in it. Solve for the optimal w for the manufacturer to charge and calculate the quantitysold under that w.Suppose a manager is faced with the following demand curve for a new software application in a monopoly market, Q = 200 - 50P and the short run total cost function is TC = 2Q + Q2 / 30 If the manager is able to maximize the firms' profit in this monopoly market, what is the total profit value?
- Consider a firm that has one factory, but can sell its product in two observably different markets, engaging in third-degree price discrimination. You may assume that the good produced is continuously divisible (like ethanol). The firm has a monopoly in market 1 and faces market demand curve Q1(P) = 100 – 2P and the firm also sells its product in market 2 which is competitive and has market price P2 = $30. The firm has cost function C(Q) = 0.25Q2 with marginal cost equal to MC(Q) = 0.5Q, where Q = Q1 + Q2 is the total quantity it produces: Q1 is the quantity to be sold in market 1 and Q2 is the quantity to be sold in market 2. a) Write out the firm’s profit maximization problem. b) Give the marginal conditions (equations) that a solution to the profit maximization problem satisfies. c) Solve for the firm’s optimal quantities to sell in each market. d) Give the price that the firm optimally charges in each marketPizza Hut and Dominoís are considering to open a shop in a new shopping precinct in Burwood. Suppose both charge $10 for a pizza (price competition is ignored here), and the aggregate local demand for pizza at this price is Q: If both Örms open a shop in the shopping precinct, Q is shared equally between the two shops. On the other hand, if there is only one pizza shop in the shopping precinct, the total demand Q goes to that shop. The total cost function for Pizza Hut is TC P(Q) = 5Q + 6000 and the total cost function for Dominos is TCD(Q) = 5Q+ 6000: Each has two strategies: Open a shop or Not, and they make their decisions simultaneously. The payoff is zero for a firm that does not open a shop in the shopping precinct. Suppose Q= 3000: Construct a 2 X 2 payoff matrix for this entry game between Pizza Hut and Dominoís and Önd the NE of the game. Suppose Q = 2000:Construct a 2x2 payoff matrix for this entry game between Pizza Hut and Dominoís and Önd the NE of the game.…The price-demand equation for the production of bluetooth speakers is: p = 250 - 1/20x, for 0 is less than or equal to x and x is less than or equal to 5000 where x speakers can be sold at $p per each speaker. The cost to produce x speakers is given as C(x) = 150,000 + 30x, where both C(x) and p are represented in dollars ($). - find the profit function and the marginal profit and interpret the quantity P'(4500) - find the marginal cost and interpret the quantity C'(3000) - find the revenue function and the marginal revenue and interpret the quantity R'(3000)
