Tasty Inc. sells table salt to both retail grocery chains and commercial users (e.g., bakeries, snack food makers, etc.). The demand function for each of these markets is: Retail grocery chains: P1 = 180 − 8Q1 Commercial users: P2 = 100 − 4Q2 where P1 and P2 are the prices charged and Q1 and Q2 are the quantities sold in the respective markets. Tasty's total cost function (which includes a "normal" return to the owners) for salt is:
Q: For given domestic and foreign interest rates, an increase in the expected price of foreign currency...
A: Since the interest rates are fixed, an increase in expected price of foreign currency in terms of do...
Q: Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially...
A: Investment is the source of demand for loanable funds and savings is the source of supply of loanabl...
Q: Suppose that the representative consumers pref- erences change, in that his or her marginal rate of ...
A:
Q: We bought a CNC machine 3 years ago for $100,000 with a salvage value of $20,000 after 8 years. It h...
A: Here we calculate the annual worth of the following machines and compare both by using the given inf...
Q: ountry of Economica's GDP deflator and nominal GDP in three different years are shown in the table. ...
A: Here we have to find real GDP .
Q: 5. Give at least four (4) ways the Global Financial Crisis of 2007-2008 could have been protected.
A: (Since you have asked many questions, we will solve the first one for you. If you want any specific ...
Q: 11. Consider the growth model diagram below. If an economy starts with 12 units of capital (labeled ...
A: At 12 units of capital, I>dK. Since investment is greater than depreciation, the economy grows.
Q: Consider an economy in which all taxes are autonomous and the following values of autonomous consump...
A: Since you have posted multiple subparts, as per the guidelines we can solve only the first 3 subpart...
Q: You take out a loan of $12,000 to pay for a piece of equipment. You plan to repay the loan in 16 yea...
A: Suppose you want to pay the first installment at the end of the year. So 16 equal payments of $1100 ...
Q: 2. What can cause inflation according to Keynes? a. increase in money supply b. increase in unit lab...
A: When talking about Keynesian economics, it explains the economic theory that rely on the fluctuation...
Q: How do laws and politics affect the trade between states?
A: Worldwide alternate laws create the rules that international locations and groups need to comply wit...
Q: (a) The Consumer Price Index (CPI) in December 1980 was 86.3. The Consumer Price Index as of Decembe...
A: a. If minimum wage in 1980 was w1980, minimum wage in 2021 will be w2021=w1980*278.886.3≈3.23w1980 b...
Q: Unions tend to the introduction of labor-saving technology. Select the correct answer below: promote...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Assume Canada is a large importer of raw materials from Otherland. Which of the following would like...
A: GDP measures the complete money or price of all finished merchandise and services created within a c...
Q: Assume that the total hours of work in Mexico are 200 in the year 2019 and the productivity is $8 pe...
A: Given Total hours of work in 2019 =200 Productivity =$8 Per hour worked. Total hours of work in 202...
Q: Assume the Philippines government adopted fiscal policy measures to reduce the severety of typhoon H...
A: Typhoon Haiyan, also known as Super Typhoon Yolanda in the Philippines, was one of the most intense ...
Q: Refer to the diagram above. What will happen at the market if supply decreases? price goes up and to...
A: Decrease in supply shifts the supply backwards. The effect on price and total revenue can be found o...
Q: Suppose that Helena's utility over goods x and y is given by U (x, y) = 2/¤ + VG Solve Helena's util...
A: A. U(x, y) = 2x +y MRS = MUxMUy = 22x12y = 2yx equating MRS to price ratio: 2yx = pxpy y = x px2 py...
Q: The quantity of a certain commodity that is offered for sale at a certain price at a given place and...
A: The answer is - Quantity supplied or supply
Q: Apply the gravity model to India and China. Why has it taken so long for India and China to become s...
A: 1. Between 2014-15 and 2019-20, India's economic relationship with China has been characterised by t...
Q: A plant manager considers the operational cost per hour of five machine alternatives. The cost per h...
A: The problem at hand falls within the topic of probabilistic decision-making. EMV stands for anticipa...
Q: Which of the following statements correctly describe discouraged workers? (If none of the choices ap...
A: Unemployment refers to the situation where a person who is ready to work does not have work is not a...
Q: 1. An entrepreneur is thinking of starting a firm. The firm will pay Tk. 320,000 in wages/salary, Tk...
A: Accounting profit, also referred to as bookkeeping profit or financial profit, is net income earned ...
Q: The late 19th century city was often dense, crowded, and dirty. This often led to disease and someti...
A: Industrialization was the rapid growth period of the economies because, under the industrial revolut...
Q: A concrete pavement on a street would cost $10,000 and would last for 5 years with negligible repair...
A:
Q: As a middle-class individual, why would you NOT prioritize saving for a retirement fund than imburse...
A: Middle class family is defined by the income level ranges . And the definition is different in diffe...
Q: If, in a monopoly market, the demand function for a product is p = 160 − 0.10x and the revenue f...
A: Demand function shows the functional relationship between Quantity demanded for a commodity and its ...
Q: The principal-agent model's prediction that higher stakes (greater incentives) will lead to higher e...
A: Principal-agent model: There are two parties that are principals, those who do not have more informa...
Q: The following diagram represents an economy in which total factor productivity z increases. PPF2 PPF...
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in ...
Q: A monopsony hires workers at the quantity of labor for which
A: Monopsony is a market consisting of a single buyer. In the case of labor market, there will be only ...
Q: How a moderate leftward shift in the supply curve is going to affect total revenue generated at a ma...
A: please find the answer below.
Q: The quantity demanded of frozen strawberries decreased from 1,800 to 1,550 when the price of fresh s...
A: Cross elasticity of demand refers to the percentage change in quantity demanded of one good due to ...
Q: uppose that your parents have enough money to buy a car and a house. The car that they want to buy c...
A: Answer is given below
Q: Why is global trade important?
A: Global trade means trading( Export and import) goods and services between the nation's . Global ...
Q: O A. Everyone has unsatisfied wants.
A: There are various definitions of Economics. The early economists called Economics 'the science of we...
Q: state of nature combination: States of Nature Weather related cost per hour Alternatives Cold cost/d...
A: the expected value of perfect information (EVPI) is the price that one would be willing to pay in or...
Q: Data for 2019 (Base Year) Data for 2020 Quantity Price Quantity Price Potato 600 2.50 68...
A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be...
Q: What is “B.O.P”? Explain the importance of “Balance of Payments” to Managers of Public and Private ...
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: 3. Which of the following is a reason for inflation from a Neoclassical/Monetarist point of view? a....
A: Answer is given below
Q: Explain why Japan exports automobiles, while the U.S. exports aircraft? Use the prior definitions of...
A: Trade is defined as the exchange of commodities and services across the boundary of the country. In...
Q: An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers, a...
A: We use the expenditure method to calculate GDP. GDP = Consumption expenditure + Investment expenditu...
Q: Explain the term Relative advantage?
A: When talking about the term relative advantage, it is an economy term that is to explain the competi...
Q: The perceived demand curve for the is Select the correct answer below: O perfectly competitive firm;...
A: Here We have to write about the perceived demand curve .
Q: An investment of P 8.5 million is expected to yield an annual gross income of P 2.85 million. Annual...
A: A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expres...
Q: A tax on water pollution is proposed for four factories in a manufacturing town of 110,000 people. T...
A: To put it another way, taxes are forced contributions placed on individuals or businesses by a gover...
Q: What are the pressures that encourage MNEs to establish in newly industrialising countries?
A: Factors that have been encouraging MNE;s to establish and expand in the industrialized countries are...
Q: Exercise 5bis: Collusion with asymmetric costs and Bertrand competition Two firms compete in a marke...
A: Given , Number of consumers = 1 Maximum willingness to pay = 10 Marginal Cost of firm 1 = c1 Mar...
Q: Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price deliv...
A: Given information Big W construction company purchase dump truck Initial cost=$278000 Tire cost=$200...
Q: The following diagram represents an economy in which government spending increases. PPF PPF2 C2 12 (...
A: In an economy, when talking about an increase in government spending, it is generally said that this...
|
|
Retail grocery chains:
|
P1 = 180 − 8Q1
|
|
|
Commercial users:
|
P2 = 100 − 4Q2
|
where P1 and P2 are the prices charged and Q1 and Q2 are the quantities sold in the respective markets. Tasty's total cost function (which includes a "normal" return to the owners) for salt is:
|
|
TC = 50 + 20(Q1 + Q2)
|
|
(a)
|
Determine Tasty's total profit function.
|
|
(b)
|
Assuming that Tasty Inc. is effectively able to charge different prices in the two markets, what are the profit-maximizing price and output levels for the product in the two markets? What is Tasty's total profit under this condition?
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 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…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…Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets, Bangladesh and Sri Lanka. Demand for Bicycles in these two 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) 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. 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?…
- Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets, Bangladesh and Sri Lanka. Demand for Bicycles in these two 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? Analyze, with graphs, the two alternative pricing…A manufacturer of mountain bikes has the following marginal cost function: C′(q)=700/0.5q+2 where qq is the quantity of bicycles produced. When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $3200, find the total cost to produce 35 bicycles.Answer: $ b) If the bikes are sold for $250 each, what is the profit (or loss) on the first 35 bikes?Answer: $ c) What is the marginal profit on bike number 36?Answer: $Pizza 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.…
- 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,…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)The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed: P=1,760−12Q�=1,760−12� The cost analysis department has estimated the total cost function for the poster bed as TC=Q33−15Q2+5Q+24,000TC=�33−15�2+5�+24,000 Short-run profits are maximized when the level of output is and the price is . The total profit at this price-output level is . The point price elasticity of demand at the profit-maximizing level of output is . The level of fixed costs the firm is experiencing on its bed production is . What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated? Increase No change Decrease Price Charged Output Produced Profits Generated
- 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) b. 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, with graphs, the two alternative pricing strategies available to the company.The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed: P=1,265−9Q�=1,265−9� The cost analysis department has estimated the total cost function for the poster bed as TC=Q33−15Q2+5Q+24,000TC=�33−15�2+5�+24,000 Short-run profits are maximized when the level of output is and the price is . The total profit at this price-output level is . The point price elasticity of demand at the profit-maximizing level of output is . The level of fixed costs the firm is experiencing on its bed production is .Suppose that two European electronics companies, Siemens (Firm S) and Alcatel-Lucent (Firm T), jointly hold a patent on a component used in airport radar systems. - Demand for the component is given by the following function \[ P=1,000-Q \] - The total cost functions of manufacturing and selling the component for the respective firms are \[ \begin{array}{c} T C_{S}=70,000+5 Q_{S}+0.25 Q_{S}^{2} \\ T C_{T}=110,000+5 Q_{T}+0.15 Q_{T}^{2} \end{array} \] Assume that the firms agreed to form cartel and calculate the joint profit.