The demand for the cowpea in the market is given as Qd=50-0.5P. The price per kilogramme of cowpea is denoted by P(GHS) and Qd is quantity demanded. What price and quantity is adequate to maximise profit, if the total marketing cost is given as TMC=60+50Q
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- The market demand and supply functions for a type of carpet known as KP-7 have been estimated, respectively, as: QD = 160 – 6P, QS = – 100 + 20P. where P is the price (dollars per yard) and Q is the rate of sales (hundreds of yards per month). A typical firm in this market has a total cost function given as: TC = 100 – 22q + 2q2, where q is the firm’s output level. The optimal amount to produce for the typical firm is q =Using a linear specification, you estimate your demand curve to equal Q=20-2P+10I, where • Q = the quantity demanded of your product • P = the price of your product • I = customer income (measured in thousands of dollars) In addition, your operations team estimates you have a constant marginal cost of $10. What quantity should you set to maximize profits assuming your average customer income equals $18000 (i.e. I=18)? a. Q=45 b. Q=50 c. Q=55 d. Q=90 e. Q=180Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is −3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places.
- Is the following statement true or false: “Customers prefer product A more than product B if the customer value of product A is less than the customer value of product B." Group of answer choices False TrueAssume you are appointed head of the U.S. Department of Homeland Security in charge of preventing illegal crossings along a section of the U.S.-Mexico border. You have a weekly budget of $16,000. As a department head, you get satisfaction (or "utility") from preventing illegal border crossings and you have at your disposal two methods for preventing illegal crossings: 1) Hiring border security personnel to patrol strategic points along the border at a cost of $1000 per week per person or, 2) Purchase surveillance drones to patrol the border at a weekly cost of $3000 per drone. Based on the data attached in the picture below, explain whether you agree or disagree with the following statement made by a subordinate: "Based on the data, the department's "utility" is highest if we employ 16 security personnel because drones are just too expensive."A company estimates that the relationship between. unit price and demand per month for a potential new product is approximated by p= $100.00-$0.10D. The company can produce the product by increasing fixed costs $17,500 per month, and the estimated variable cost is $40.00 per unit. What is the demand that maximizes revenue and the maximum revenue? What is the optimal demand, D*, and based on this demand, should the company produce the new product? Why? (Work out the complete solution by differential calculus, starting with the formula for profit or loss per month.)
- 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 charge per unit will be determined by the equation p= 180-5(D), where D represent demand in unit 1) What is the optimal number of units the defense contractor should produce in order to maximize profit per week? 2) What is the profit if the optimal number of unit produced?A company is considering outsourcing its customer service work. The following are bids received from two different companies. Vendor Price A $10,000 + 120X B $100,000 + 30X X- Number of calls received per year. The number of calls per year that the company has to service so that both the offers from vendors A and B are equally attractive is the following. Group of answer choices 1500 1000 1600 900 1200The FIA Formula 1 World Championship to be held next Sunday, November 7, during the 2021 Mexico City Grand Prix, has a total cost function equal to CT = Q3 /3+ 3Q2 + 125Q and an inverse demand function of P = 200−2Q . The profits or losses obtained from the celebration of this event will be:
- “Saudi Government support for the private sector employees during COVID-19 pandemic has resulted in reduced layoffs”. DiscussExercise 4.6 An econometrician hired to analyse a local golf course has determined that there are two types of golfers, the regular and the occasional. The annual demand for games from regular players is given by QH = 24 – 0.3P, where P is the price of a round of golf. On the other hand, the annual demand for occasional items is given by QO = 10 – 0.1P. The marginal cost and the average total cost per item are equal to €20. a) If you could distinguish between regular and casual players, what price would be set for each type? How many games would each type of player play? How much profit could the golf course generate? Represent graphically. b) As an alternative to the discrimination of third degree prices, those in charge consider a double tranche rate according to which the members can play as many games as they wish at a price of € 20 per game. How much profit will the golf course generate if it charges all players the same annual fee for becoming a member of the club? What if you…Market research for a certain ice cream company indicates that if the price per cup of ice cream is P50.00, the demand will be 1200 cups, whereas if the price is increased to P60.00, the demand will be 1100 cups. Therefore, at a production level of 200 cups of ice cream, the revenue generated by the company would be $130 for each additional cup of ice cream produced. Now, suppose it is known that the total cost of production of x cups of ice cream is given by C(x) = 3x + 25,500. (a) Find the value(s) of x at the break-even points. (b) Use marginal analysis to approximate the profit from the sale of the 500th cup of ice cream. Compare this value with the exact profit from the sale of the 500th cup.
