Aji Fatou owns a rental space in New York and is thinking of opening a restaurant in that space. The total cost of operating the restaurant is C(Q) = 20Q, where Q is the number of customers at the restaurant in a day. The market demand for restaurants is Q = 100 - p. Aji Fatou has the option of leasing out this space instead of opening a restaurant. The market rent for her property is $600. If Aji Fatou is operating as a perfectly competitive firm. What is Aji Fatou's Accounting profit (please put your answer in numerical value with no dollar sign, comma, or decimal place). Her (please put your answer in numerical value with no dollar sign, comma, or decimal place). Aji Fatou has maximized the total surplus in this market. (please put your answers as true or false, lower case only) Economic Profit is

Aji Fatou owns a rental space in New York and is thinking of opening a restaurant in that space. The total cost of operating the restaurant is C(Q) = 20Q, where Q is the number of customers at the restaurant in a day. The market demand for restaurants is Q = 100 - p. Aji Fatou has the option of leasing out this space instead of opening a restaurant. The market rent for her property is $600. If Aji Fatou is operating as a perfectly competitive firm. What is Aji Fatou's Accounting profit (please put your answer in numerical value with no dollar sign, comma, or decimal place). Her (please put your answer in numerical value with no dollar sign, comma, or decimal place). Aji Fatou has maximized the total surplus in this market. (please put your answers as true or false, lower case only) Economic Profit is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Optimization Problem #5
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A company markets two products. The quantities of these two products are x and y. Both products are priced at $60 and the productive capacity for both products together is 30. The total cost of the firm is C (x, y) = x² + xy + y². Find the production levels of x and y which maximize profit. What is the maximum profit? Prove that profit is maximized.
The manager of a large apartment complex knows from experience that 100 units will be occupied if the rent is 414 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 9 dollar increase in rent. Similarly, one additional unit will be occupied for each 9 dollar decrease in rent. What rent should the manager charge to maximize revenue?
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Flora sells flowers in a perfectly competitive market. These cost functions represent her daily cost functions. TC = 100 + 0.50 + .2502 MC = 0.5 + 0.50 The current price is $9.50 Determine the profit/loss for Flora. Round to the penny. Suppose this is Flora's daily cost functions. This (profit/loss) value is expected to be constant for the next two weeks.What advice you would give her for these next two weeks related to running her business? Explain why.
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A travel agency identifies two customer segments for a cruise ship. The demand curve for customers that are less price-sensitive is D1=1000-2P1. The demand curve for customers that are more price-sensitive is D2=1000-3P2. The cost of maintaining each cabin is $50. If one single price is charged, what is the price to maximize the profit? What is the profit? If the differential prices are charged to each customer segment, what is the price for each customer segment respectively? What is the total profit? What is the profit increase by charging different prices to each customer segment compared with one single price?
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A firm is producing computer monitors. The market price per monitor is P1=$450. The cost function is given by C(Q) = 1,500 + 2.8Q2. New information indicates that the new market price is P2=$130. Given this information, what are the optimal profits at the new price?
Mr. Nelson, the manager of a US company, entered into a contract with an Italian company, Roma, to order some leather suitcases. The Goods were delivered on time, but with some of the zippers on the suitcase defective. Mr. Nelson contracted Roma and gave a notice that he wanted to cancel the contract. Roma responded that they only can give a reduction in the price. Who is legally right?
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