Taiwan instrument company exports computer memory chips in Japan & United States. Demand & cost functions in the two markets is given below Japan: P= 14-Q United States: P= 8-Q C= 5 + 2(Q+ Q) Find out output, profit, price level and show its graphical presentation
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- 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…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 – P1Sri 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) Required. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.? 2. 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 thesameprice in the two markets what are the profit…E1 Agroscience Company, Cypress, TX manufactures a certain product with estimated variable costs, per unit, V =0.10Q – 40 and aggregated fixed costs of $40,000. The price-quantity demand relationship for this product is P = −0.5Q + 900, where P is the unit sales price of the product and Q is the annual quantity demand. ● Total cost = Fixed cost + Variable cost ● Revenue = Quantity Demand × Price ●Profit = Revenue − Total cost a) Develop the equations for total cost and total revenue. b) Find the breakeven quantity. c) What profit is earned if i) total cost is minimized and ii) total revenue is maximized? d) Which of the strategy will be better for the company to adopt to optimize their profit, is it to minimize total cost or maximize total revenue? Give reason for your choice. e) What is the company’s maximum possible profit?
- A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations are given below.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) (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? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.A U.S. export-import shipping company operates a general cargo carrier service between New York and several western European ports. It hauls two major categories of freight: manufactured items (Q1Q1) and semimanufactured raw materials (Q2Q2). The demand functions for these two classes of goods are: P1= 200-Q1 P2=80-Q2 Where Qi= tons of frieght moved. The total cost function for the United States is TC= 20+4(Q1+Q2) What is the firm's total profit function? The profit-maximizing levels of price and output for manufactured items are $ per ton and tons, respectively. The profit-maximizing levels of price and output for semimanufactured raw materials are $ per ton and tons, respectively. At these levels of output the marginal revenue in the manufactured items market is $ and the marginal revenue in the semimanufactured raw material market is $ . At these prices, the price…
- denton productions limited utilizes statistical analysis to determine the optimal price for its sales to customera, during july 2020, the company was provided with the following demand and cost functions by a statistical research company, p=200-6Q, where p=price in dollars; and Q=quantitity of units in thousands TC=5Q2 + 24Q + 150, where TC is total costs in thousands of dollars a. determine the maximum sales revenue b. calculate the maximum profitdenton productions limited utilizes statistical analysis to determine the optimal price for its sales to customera, during july 2020, the company was provided with the following demand and cost functions by a statistical research company, p=200-6Q, where p=price in dollars; and Q=quantitity of units in thousands TC=5Q2 + 24Q + 150, where TC is total costs in thousands of dollars a. determine the optimal output for july 2020 b. find the price that maximized profitFor April 2021, the actual cost per ASM (available seat mile) for Southwest Airlines was approximately 12.30. This as our best estimate of marginal cost, and assuming the price elasticity of demand is -3.5, find the profit maximizing air fare for Southwest Airline?
- Answer b and c 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) a. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. b. Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze,…Cambrian Railways runs a daily container freight train between Cardiff and Birmingham. Its major customer Welsh Farming Co-operative has a demand for containers by the equation: P = 410-5Q, where P is the unit selling price and Q is quantity of units in thousands. Cambrian's total cost function is given by the equation: TC = 3Q2 + 10Q – 100, where TC is total costs in thousands of dollars. Required: Identify two factors to consider when making pricing decisions within the organization.Q1. Game console manufacturing determines that in order to sell Q units, the price per unit (in dollar) must decreased by the linear demand (the demand function) P(Q)= 800- 0.3Q($/device) The manufacturer also determine that the cost depends on the volume of production and includes a fixed part 500,000($) and a variable part 500Q , that is C(Q)= 500000+ 500Q What price per unit must be charged to get the maximum profit?