A U.S. export-import shipping company operates a general cargo carrier service between New York and several western European ports. It hauls two major categories of freight: manufactured items (Q1Q1) and semimanufactured raw materials (Q2Q2). The demand functions for these two classes of goods are: P1= 200-Q1 P2=80-Q2 Where Qi= tons of frieght moved. The total cost function for the United States is TC= 20+4(Q1+Q2) What is the firm's total profit function? The profit-maximizing levels of price and output for manufactured items are $ per ton and tons, respectively. The profit-maximizing levels of price and output for semimanufactured raw materials are $ per ton and tons, respectively. At these levels of output the marginal revenue in the manufactured items market is $ and the marginal revenue in the semimanufactured raw material market is $ . At these prices, the price elasticity of demand in the manufactured items market is and the price elasticity of demand in the semimanufactured raw materials market is . What are the total profits if the company is effectively able to charge different prices in the two markets? $ . If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are $ per ton and tons respectively. The total profits in this situation is $ .
A U.S. export-import shipping company operates a general cargo carrier service between New York and several western European ports. It hauls two major categories of freight: manufactured items (Q1Q1) and semimanufactured raw materials (Q2Q2). The demand functions for these two classes of goods are:
P1= 200-Q1 P2=80-Q2
Where Qi= tons of frieght moved. The total cost function for the United States is
TC= 20+4(Q1+Q2)
What is the firm's total profit function?
The profit-maximizing levels of price and output for manufactured items are $ per ton and tons, respectively.
The profit-maximizing levels of price and output for semimanufactured raw materials are $ per ton and tons, respectively.
At these levels of output the marginal revenue in the manufactured items market is $ and the marginal revenue in the semimanufactured raw material market is $ .
At these prices, the
What are the total profits if the company is effectively able to charge different prices in the two markets? $ .
If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are $ per ton and tons respectively. The total profits in this situation is $ .
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