11) Steve's paper factory is polluting a local river and the following information is provided on its production quantity, profit, demand, and cost conditions. Production Marginal MSB= Quantity Profit MPB 1 60 70 2 40 60 20 0 -20 -40 3 4 5 6 50 40 30 20 a) $80. b) $100. c) $110. d) $130. MPC 10 20 30 40 50 60 MSC 40 60 80 100 120 140 If the government gives Steve 2 permits for free, and the permits trade at a market price of $50 each, what will Steve's profit be equal to after he optimally trades permits?

11) Steve's paper factory is polluting a local river and the following information is provided on its production quantity, profit, demand, and cost conditions. Production Marginal MSB= Quantity Profit MPB 1 60 70 2 40 60 20 0 -20 -40 3 4 5 6 50 40 30 20 a) $80. b) $100. c) $110. d) $130. MPC 10 20 30 40 50 60 MSC 40 60 80 100 120 140 If the government gives Steve 2 permits for free, and the permits trade at a market price of $50 each, what will Steve's profit be equal to after he optimally trades permits?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 2.6CE

See similar textbooks

Similar questions

how will the market reach equilibrium according to this graph shown below?
Problems 1-6 are based on the following information: A company sells PC software whose price is determined by p-200-50, where Q is the quantity purchased per day. It has fixed costs of $100 per day and variable costs of $10 per unit sold. Profitis at the profit maximizing price and quantity OA $2025 8.51705 OC.5290 D5105 E$1995 ...
Quantity of Utensils demanded Revenue Price of Total Marginal Utensil Revenue $50 100 $45 200 $40 300 $35 400 |$30 500 $25 600 $20 700 $15 800 $10 900
+ Output Variable Total AFC AVC ATC Marginal Price Cost Cost Cost $100 300 $150 350 $210 410 $300 500 $430 630 1 2 3 4 5 6 7 $600 $819 800 1019 180 170 160 150 140 130 120 Total Revenue MR Assume the producer was planning to produce a quantity of six units. What would you advise the producer to do in terms of production and pricing to maximize their profit? Provide an explanation of your reasoning. Be specific in your price and quantity targets.
LEAST COST METHOD DESTINATION SOURCES SUPPLY 1 3 1 7 4 300 2 6 400 8 3 2 500 DEMAND 250 350 400 200 5. 3.
QUESTION 29 PRODUCT product X b) product Y product Z 153 1988 price: $2.00 2,000 O c) 1.2 O d) 150 O e) 200 quantity: price: $1.00 1,000 quantity: price: quantity: $5.00 1,000 1989 $4.00 2.500 $1.00 1,500 $4.00 1,000 YEAR 1990 $6.00 2.000 $1.00 2,500 29. Given the data in the above table, what is the price index for 1991, using 1988 as the base year and using the 1988 consumption pattern (market basket)? O a) 100 $2.00 1,000 1991 $8.00 1.500 $1.00 3,000 $3.00 1,000
Table: Spring Water Quantity(Cases) Price TotalRevenue MarginalRevenue MarginalCost AverageTotalCost Total Cost 0 $16 $0 $25 $15 $10 1 $15 $15 35.00 $35 $13 $6 2 $14 $28 20.50 $41 $11 $4 3 $13 $39 15.00 $45 $9 $2 4 $12 $48 11.75 $47 $7 $3 5 $11 $55 10.00 $50 $5 $3 6 $10 $60 8.83 $53 $3 $5 7 $9 $63 8.29 $58 $1 $9 8 $8 $64 8.38 $67 Reference: Ref 15-12 Table: Spring Water Table: Spring Water. The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs. The profit-maximizing output is _____ cases. Select one: a. 7 b. 5 c. 6 d. 8
How much does profit change if 6 units are sold instead of 5?
5
1. A certain computer company produces three kinds of computers, labelled A, B and C. This computer company has three factories, labelled 1, 2 and 3. The profit for each computer, the in-process space needed to produce each computer, and the market demand per day is indicated below: A B C 350 550 300 Product: Profit ($): In-process space (ft2): 20 Market demand/ day: 900 1200 750 15 10 As long as the number of computers produced are not more than the market demand, they will be sold. The three factories have the following production space: 2 3 Factory: Production space (ft2): 13000 12000 5000 1 (a) Identify variables for the optimization problem (b) Write down the objective function (c) Write down the constraints for production space (d) Write down the constraints for market demand. (e) Write down any other constraints needed to complete the optimization problem
GivenMonthly rent25,000Monthly Salary/employee10,000Market price of slippers520Total units sold20,000 Solve for the followingTotal RevenueTotal CostProfit/Loss (indicate if its a profit or loss)
Price (Per Unit) Pi P₂ P3 Pa 9₁ MC 92 93 94 Quantity (Units per week) (a) ATC Price (Per Unit) D P₁ D₂ Quantity (Units per week) (b) O economic profit is less than zero, and firms will exit. O economic profit is greater than zero, and firms will expand production. there are zero economic profits, and there will be no entry or exit. Othere are zero economic profits, and firms will exit. D₂ D₁ Individual cost curves are represented in Graph A, while market supply and demand are represented in Graph B. If market demand curve is D2, then in the long run, Da