A.If D=40 – 6Q, find MR and P. B. If D = 100 – 4Q and MC = 40, find profit maximizing output and price C.If D = 100 – 4Q, find MR and revenue maximizing output.
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A.If D=40 – 6Q, find MR and P.
B. If D = 100 – 4Q and MC = 40, find profit maximizing output and price
C.If D = 100 – 4Q, find MR and revenue maximizing output.
please explain how I would figure this out
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- Question: Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC-$1. The number of customers in the target population is 10,000. Analyze the challenges that the marketing firm will be facing to evaluate customer demand. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% Tweeners $2 10% Seniors $2 10% Others $0 40%22. Suppose the firm in the figure below sets a uniform price for its product. Please show the steps. a. If the firm chooses to set a uniform price for its product, then the profit-maximizing price is $________ and ________ units will be sold. Under this uniform pricing policy, the maximum possible profit is $________. b. The maximum profit the firm could earn if the firm sells 2,000 units and is able to charge the demand price for every one of the 2,000 units it sells is $ ________. c. For the additional number of units sold by expanding output to 2,000 units (from the output level in part a), the consumer surplus that could be captured if it were possible to charge the demand price on every one of those units would amount to $________.If a firm charges a lower price they will have a lower profit margin but a higher profit; if a firm charges a higher price they will have a higher profit margin but a lower profit. Which of the following statements is accurate? A. The firm should charge a lower price for the higher profit. B. The firm should a higher price for the lower profit. C. The firm should charge a higher price for the higher profit margin. D. Whether the firm should charge a higher price or lower price indeterminate.
- A friend has just started up her own business. Her firm asks you how much to charge for her product to maximize profits. The demand schedule for it is given by the first two columns in the table below; its total costs are given in the third column. For each level of output, you can calculate total revenue, marginal revenue, average cost, and marginal cost. The profit-maximizing level of output can be found at the point where TR - TC is greatest, or where MR = MC, (or the last quantity where MR is still greater than MC.) What is the profit-maximizing level of output for her product? 40 How much will she earn in profits? 80 Price Quantity TC TR? MR? MC? $25.00 0 $130 $24.00 10 $275 $23.00 20 $435 $22.50 30 $610 $22.00 40 $800 $21.60 50 $1,005 $21.20 60 $1,225Entry, Exit, and Long Run Profitability - Work It Out Suppose the accompanying graph shows the market for lattes at the local café in your hometown. a. You notice that the local café charges $4 for a latte. Move the points on the graph to label the profit margin per unit at a price of $4 a latte. Price ($ per latte) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 0 profit margin 275 550 Average cost Demand 825 1,100 1,375 1,650 1,925 2,200 Quantity of lattes b. At a price of $4 per latte, the profit margin per unit is $Solve only c and d 2. There are 2 groups with different demand in a market, as follows: Q!=40−P1 and Q"=100−2P2 a. Give the inverse demand curves and marginal revenue in each of these groups. b. If marginal cost is flat at $10, calculate the profit-maximizing quantities and prices associated with this market place. Are the prices for each group different? Comment on the outcomes. c. Calculate the producer surplus associated with the outcomes generated in part b. d. Now calculate the equilibrium price and quantity if the firm charges one price across all consumers. What is the producer surplus associated with this outcome and how does it differ to that calculated in part c?
- Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180Imagine you are the owner of the Omaha Surfboard Company. You have a branch in Omaha and in Long Beach CA. After some market research you find the following surfboard demand for each market, Omaha Demand: Qo = 1000 – 10P Long Beach Demand: QL = 1000 – 5P Combined/Total Demand: Q = 2000 – 15P Your marginal cost is constant at $40. a. Find your price and quantity if you treated the market as a single entity with a single price. What is your profit? (Hint: find Marginal Revenue and set equal to MC) b. If you treat each market separately, what is P and Quantity in each market, and final profit?Tommy runs a take-out pizza outlet called Healthy Pizza, which is located in a strip mall where there is a lot of parking available. Tommy sells only one type of pizza - a Loaded Vegetarian Pizza. The monthly fixed costs related to making and selling this pizza are: advertising $500, space and machine rental $1500; monthly salary and other costs are also fixed at $2000. The variable costs involved in making and selling each pizza is $4 per pizza, regardless of the monthly quantity produced or sold. Tommy directly competes with a children's pizza place, a meat lover's pizza parlour, as well as other takeout restaurants all located within a three-block radius. Based on past experience, Tommy estimates the monthly demand for his Loaded Vegetarian Pizza as follows, depending on the pizza price. Tommy's Pizza: Costs and Revenues MR Price per Pizza ($) Quantity Sold TR (ATR/AQ) MC 18 3200 57600 17 3600 61200 16 4000 64000 15 4400 66000 14 4800 67200 What is the profit maximizing quantity of…
- O 1) R. 2) S. 3) U. 4) T. RSTU Quantity (per period)1. Demand and Costs. Assume you are faced with the following demand curve,P = 20-0.5QWhere P is the dollar price per unit and Q is the number of units sold per month, and Q must be2 or more.a. Write the expression (definition) for this firm’s Total Revenue (TR)b. Write the expression for this firm’s marginal revenue (MR).c. What is Q when the P is zero?d. What is P when the Q is zero?e. Profit maximization occurs where MR=MC. If MC=$10 what is the profit maximizing levelof Q and P?f. As a business owner, you are thinking about lowering the price of this product. If youlower the price by 10% from your answer in e., will your TR rise or fall?In this video, Hamida may have made a mistake in identifying the profit/loss area. Identify whether or not she's made a mistake. If she hasn't, mark it as right. If she has, then identify the right profit/loss area. The graph is attached here again for your convenience Costs and revenue $ P2 P₁ Pol 0 W Qy MR MC ATC AVC Demand Quantity Hamida did not make a mistake. There is a loss of (P1-P2)Qy for this monopolistically competitive firm There is a positive profit of (P1-P2)Qy for this monopolistically competitive firm O There is a loss of (P2-PO)Qy for this monopolistically competitive firm
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