A Discuss the importance of price elasticity of demand, income elasticity of demand and cross price elasticity of demand to a sales manager selling soft drinks like Coca Cola
A Discuss the importance of price elasticity of demand, income elasticity of demand and cross price elasticity of demand to a sales manager selling soft drinks like Coca Cola
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.2P
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Question
![QUESTION 1
A Discuss the importance of price elasticity of demand, income elasticity of demand and cross
price elasticity of demand to a sales manager selling soft drinks like Coca Cola
B. If a firm faces the Marginal Cost schedule MC = 180 + 0.3Q²and the MR schedule is MR = 540
= 0.6Q° and that Total Fixed costs are K65. What is the maximum profit it can make? Assume
that the second-order condition for maximum is met
C. A firm knows that its price (P) and its output (Q) are related by the expression P = 80– 2Q
I) Express Q in tems of P
Ti) Use this expression to find an expression for TR in terms of Q
lii) Find the value of Q which maximizes TR
D)A manufacturer knows that:
His TRis given by Revenue = 23Q - Q²
%3D
His total cost of production is; Cost = 36+ 2Q+ 0.1Q?
Where Qis the weekly production in thousands](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18a19803-78d5-4ca4-b8d5-a4da1816b5ab%2F6d9fd551-6b1c-4d46-aa35-4f34c258600b%2F0nrm4z5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 1
A Discuss the importance of price elasticity of demand, income elasticity of demand and cross
price elasticity of demand to a sales manager selling soft drinks like Coca Cola
B. If a firm faces the Marginal Cost schedule MC = 180 + 0.3Q²and the MR schedule is MR = 540
= 0.6Q° and that Total Fixed costs are K65. What is the maximum profit it can make? Assume
that the second-order condition for maximum is met
C. A firm knows that its price (P) and its output (Q) are related by the expression P = 80– 2Q
I) Express Q in tems of P
Ti) Use this expression to find an expression for TR in terms of Q
lii) Find the value of Q which maximizes TR
D)A manufacturer knows that:
His TRis given by Revenue = 23Q - Q²
%3D
His total cost of production is; Cost = 36+ 2Q+ 0.1Q?
Where Qis the weekly production in thousands
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