Marginal cost

Winter is Coming: An Analysis of Cost, Revenue, and Profit The purpose of this analysis is to gain insight into the fiscal ramifications of producing and selling Winter is Coming’s winter coats. As a seasonal product, the winter coat shows notable fluctuations in demand, revenue, and profitability between warmer and colder seasons, and thus must be effectively modelled and interpreted in order to maximize profits. By splitting the product’s analysis into two parts, Winter is Coming will gain valuable

will be made by using the concepts of marginal costs and marginal revenue to maximize profit. A mix of pricing and non-pricing strategies will be

Differentiating between Market Structures Jessika Canales Díaz ECO /365 08/28/2010 Instructor: SR. Carlos Méndez David Differentiating between Market Structures In this simulation, the learner studies the cost and revenue curves in different market structures perfect competition, monopoly, monopolistic competition, or oligopoly faced by a freight transportation company, and makes decisions to maximize profits or to minimize losses. The simulation also deals with the concept of Prisoner’s

At the present time the use of Marijuana is considered illegal in most of the states of the United States. Washington, Oregon, Colorado and Alaska legalized the use of Marijuana for medical and recreational purposes. Montana, Nevada, California, Arizona, New Mexico, Minnesota, Michigan, Illinois, New York, Vermont, Massachusetts, Connecticut, New Hampshire, Maine, Rhode Island, Delaware, New Jersey and Hawaii have legalized Marijuana for medical purposes only, the rest of the states have no laws

In the short run, the firms who are given the subsidy are making normal profit as well as a rent. Likewise, even though the cost of production is lower for the firms who obtain the subsidy, the price that the firm charges for the product is lower than the natural equilibrium price set by the market. If the subsidized firms were to charge P1, the firms that receive the subsidy

a) 4 b) 5 c) 6 d) 8 10. Assume this monopolist's marginal cost is constant at $11. What quantity of output (Q) will it produce and what price (P) will it charge? a) Q = 4, P = $27 b) Q = 4, P = $25 c) Q = 5, P = $23 d) Q = 7, P = $17 Suppose that the industry price of this product is $12 in a competitive industry. Every firm in the industry has fixed costs of $10 and has the following marginal cost s: Quantity Marginal Cost 1 $4 2 6 3 8 4 10 5 12 11. How many

– 30(110) =6,700 profit maximizing price Therefore the firm should buy the engine since the engine produced by the firm is more than the engine provided by the other firm. Chapter 6 Question 10 Page 266 Part A: Revenue is P*Q. Obtain Marginal Cost function through 160 + 16Q + 0.1Q2 FOC (derivative of above equation) 16 + 0.2Q= MC From the

that it can increase labor productivity and, there-fore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC= 40P, where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR= 1,000 −10P. How much pollution reduction should Appalachian Coal Mining undertake? Q6:

(29/3 1998) The inverse demand function for a non-renewable resource is Pt = a- bRt, where Pt is the market price and Rt the extraction in period t. The total gross benefit from extracting this resource can be written as an integral The extraction cost Ct= cRt, where c is a constant. Total available amount of the resource is denoted by S. From a social point of view we want to maximise the net benefits from extracting this resource subject to the general constraint that the sum of extraction in different

know by now, please discuss your group members’ postings and respond to the comments made on your postings during the discussion period (see the course syllabus for the due dates and a more detailed discussion of the course grading scheme). The Costs of Production Select one or two of the following questions to answer. 1. What