(d) Find a nonzero price at which there is positive total demand for dogpolishers and at which there is a kink in the demand curve.What is the market demand function for prices below the kink?kink?.What is the market demand function for prices above the(e) Where on the market demand curve is the price elasticity equal to-1?At what price will the revenue from the sale of electricdog polishers be maximized?If the goal of the sellers is tomaximize revenue, will electric dog polishers be sold to breeders only, topet owners only, or to both?Price30025020015010050050100150 200250 300Quantity 15.3 (0) The demand function of dog breeders for electric dog polishers= max{200-p, 0}, and the demand function of pet owners for electricdog polishers is qo= max{90 - 4p, 0}.is qb=

Given demand function The demand function for the dog breeders for electric dog…

Answered: 15.3 (0) The demand function of dog…

15.3 (0) The demand function of dog breeders for electric dog polishers is q = max{200—p, 0}, and the demand function of pet owners for electric dog polishers is qo= max{90 - 4p, 0}.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function4Q = 35 − 0.5P. If total fixed cost is GH¢80 and average variable cost per unit function is 3Q −51 + 320/Q Where Q, is number of tooth paste produced and P is the price per tooth paste (in GH¢). What is the total profit at the profit maximizing level of output, and what is the best pricing policy option?
Widget Sales Jesaki Inc. is trying to enter the widget market. The research department established the following price-demand, cost, and revenue functions: p(x)=60-1.20x C(a) = 210 + 12x |R(x) = xp(x) = x(60 - 1.20x) Revenue function where x is in thousands of widgets and C(x) and R(x) are in thousands of dollars. The price p(z) is the price in dollars of one widget when the demand is a thousand widgets. All three functions have domain 1 ≤ ≤ 50. Use this information to answer questions 1-10 below. Price-demand function Cost function
Suppose Bang Bang is the only local swimming pool. She believes that there are 10 potential customers. Each of them has an identical demand function of QI = 250 – 0.02P, with QI as the unit of services of each customer. She operates with a constant variable cost of $500 per unit of service. a. Find the market demand function for her services. (Hint: use “Q” to denote the total market quantity)
A toy manufacturing from has demand for the product is given by the demand function Q= 500 - 3p. Where P is the price in dollars and q is the quantity sold per year. What quantity will the firm sell at price $100.
The marketing research department for a company that manufacturers and sells gaming systems established the following price-demand function p(x)=240-30x Where p(x) is the wholesale price in dollars at which x thousand gaming systems can be sold, Find the revenue function when x thousand units are demanded Find the value of x that will produce maximum revenue. What is maximum revenue to the nearest thousand dollars? What is the price per gaming system that produces the maximum revenue?
Imagine that the cell-phone market is made up of one large firm that leads the industry and sets its own price first, while smaller firms in the industry follow. There are 20 such smaller firms, each with a supply function of q; = 67.50 + for i = 1,2, ..., 20 firms, while pis the per-unit price. Total market demand for cell phones is given by the function Q = 6, 700.00 – p. If the cost function for the leading firm is CL(qL) = 109L, calculate the following values: %3D Leading firm's production: q1 = (Round to two decimals if necessary.) Total follower firm production: qF = (Round to two decimals if necessary.) Equilibrium price: p = $ (Round to two decimals if necessary.)
A new restaurant – Uovo – has just opened in West L.A. It is serving the upscale market, with truly outstanding pasta that is flown in overnight from Bologna, Italy. Uovo offers a fixed-price menu with appetizer, three dishes of pasta, and a delicious tiramisu for dessert. The restaurant faces the following demand function: Q = 600 - 4P where Q is the number of guests per day. The marginal cost is constant at $50 per customer (including expenses for ingredients and personnel). The restaurant is paying a rent of $2,000 per day. What is the profit-maximizing number of guests that Uovo should serve each day, and what price should Uovo charge to maximize profit? What is the elasticity of demand at the optimal price and quantity? Is demand elastic or inelastic at this point? From what we learned in class, does it make sense for the restaurant to operate in this area of the demand curve (elastic/inelastic part)? What is the profit of the restaurant at the optimal price and quantity, and what…
Suppose that the inverse demand for aloe juice in Greece is given by P = 100 – 2Q, where P is the price per bottle (1000ml) of aloe juice and Q is the total quantity, i.e., number of bottles, supplied in the market. There are two aloe juice manufacturers in Greece, Aloe Health and Aloe Wealth, operating under similar cost conditions. Each manufacturer's cost function is C(q) = 4qi, i =1,2, where q¡ is the manufacturer's individual quantity produced and Q = qı + q2. (a) Based on demand conditions every year, they decide, independently of each other, the quantity of aloe juice that will be supplied, letting the market determine the price per bottle. Find the equilibrium price and each firm's profit in this market. %3D (b) Consider that the above two manufacturers form a cartel, agreeing to fix their total quantity in such a way that the market maintains a collusive price. For simplicity, the eventual cartel directory will determine the target total-quantity and price pair, and each firm…
1. A company has estimated that its total cost (TC) function is: TC = 12,000 + 60Q Where Q refers to quantity. The marketing department of this company is unable to estimate the demand function for the company but believes the price elasticity for the company's products is (-)4. Given this information, calculate the profit maximising price
The cost, in dollars, to produce x designer dog leashes is C(x) R(x) 7x + 10, and the revenue function, in dollars, is - 3x? + 55x - Find the profit function. P(x) = -322 + 48x – 10 Find the number of leashes which need to be sold to maximize the profit. 8. Select an answer Find the maximum profit. 182 Select an answer > Find the price to charge per leash to maximize profit. Select an answer > V Select an answer What would be the be much for a leash? dogs too much money for a lea leashes dollars
Suppose that the only movie theater in town has two types of customers, senior citizens and adults. The demand curve for senior citizens and adults are given by: Q₁ = 100 - P₁ Q2 = 120 - 0.5P₂ Where Q₁ denote the number of movie tickets purchased by senior citizens and Q2 denote the number of movie ticket purchased by adults. The cost function for the movie theater is given by: TC 2000 + 20 (Q₁ + Q₂) Suppose that the theater can charge two different prices and is going to apply the third-degree price discrimination as their pricing strategy: Demand curve for senior citizens C. Demand curve for adults Total Cost of Production a. List and explain all the conditions necessary for third-degree price discrimination! b. (i) What prices will the movie theater charge and how many tickets will be sold to each type of consumer: (ii) Explain graphically your answer in part b(i, Now suppose that MC is rising, show graphically the case where third-degree price discrimination may not be profitable…
Please solve this problem? THANK YOU