5 Activity 2Assume a demand function:Q = 25-3P + 9A + PA-1.2A² - 0.5P²(Where Q= quantity; P= price and A= advertising expenditures in hundreds)Derive/calculate the following:Task1. The partial derivative of price2. The partial derivative ofadvertising3. The optimal value of P4. The optimal value of A5. The optimal value of QAnswer

Given, Q=25-3P+9A+PA-1.2A2-0.5P2

Answered: Assume a demand function: Q = 25-3P +…

Business

Economics

Assume a demand function: Q = 25-3P + 9A + PA-1.2A²-0.5P²

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Figure A Q Figure B Figure C Price (dollars per unit) 15, 14- 13- 12- 11- 10- Price (dollars per…

A: In a perfectly competitive market, there are large number of firms producing similar and identical…

Q: Joey is opening a coffee shop and he needs to decide how many baristas he should staff. He did some…

A: The following problem has been solved as follows:

Q: of oil would make 15 million barrels the optimal quantity to extract and sell

A: At price 90 oil would make 20 million barrels the optimal quantity to extract and sell this year.

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: 1) "According to the midpoint method, the price elasticity of demand between points A and B is…

Q: terest accumulated on the principal of a loan ust also be paid. The accumulated interest is known as…

A: The principal(P) is that amount which is borrowed from the bank. Amount(A) to be payed back is the…

Q: Question 8 Assume that Derryland and Whetonia can switch between producing cheese and producing…

A: Opportunity Cost: It refers to the foregone revenue on the next best alternative if we pick a…

Q: There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar…

A: With the existence of a transaction cost of $90 which has to be split between the two that is $45…

Q: UNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE…

A: However, the relationship between marginal cost and average variable cost is this:When marginal cost…

Q: EXCERCISES Y C АРС APS MPC MPS 100 100 150 200 200 300 250 Complete the table above

A: We know that , As per Keynes , Y = C + S where,…

Q: 19. Refer to Table 1 given below. Suppose that you have a house that you rent out. If you keep the…

A: The benefit of maintaining the lawn must be greater than the opportunity cost of wages you are…

Q: a. Estimate the marginal rate of technical substitution between pump psi and injector diameter.…

Q: Using the graph, complete the table that follows by indicating whether each statement is true or…

A: In the language of economics, "demand" is the amount of an item or service that buyers are willing…

Q: The table below provides the total revenues and costs for a small landscaping company in Total…

A: Many physical assets loses its value with time . the value of loss is known as D(depreciation)…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: "While gasoline taxes and fuel economy standards can both be effective in increasing the number of…

A: The realities affirm that gas appraisals and mileage rules can both be strong in extending the…

Q: 80 1 100 2 118 3 140 What is the value of TFC when 1 unit of output is produced? (а) 100 (b) 80 (c)…

A: Total fixed cost (TFC) Constant always

Q: (2) (3) (1) Percentage of All Households Percentage of All Households in This Personal Income Class…

A: A running total of frequencies is referred to as cumulative frequency. The frequency of an element…

Q: Note: Good A B C D E F G H I J Nominal rate 10% 5% 0% 30% 2% 2.5% 15% R0.50/unit 40% R2.50/unit…

A: We need to take the average of all the nominal tariff rates without considering the import values.…

Q: Give ans for question 6

A: a. i) If the income is $10,000, then the price of the good is increased from $8 to $10, and the…

Q: . A company has a total sales revenue of 29 000 euros a month. The fixed costs of this company are…

A: Given information Total sales revenue=29000 per month Fixed cost=11400 per month Net income=4600 per…

Q: A bottle of wine costs $14.00 and yields 5 ‘by the glass’ servings. To have a 25% FC what would I…

A: Price can be calculated by using the following formula.

Q: QUESTION 10 The demand for goods is given by Z-C+G In equilibrium, output is equal to demand, or…

A: The market equilibrium level refers to the situation when the total income is equals to the total…

Q: Your company plans to raise price on product A by 5% per year. Due to competition, sales volume from…

A: Introduction Our business intends to increase the cost of Item A by 5% annually. The volume of sales…

Q: Consumption/Savings 1400 1200 1000 800 600 400 200 0 -200 200 400 600 800 1000 1200 1400 1600 Income…

A: Let's break down the income and consumption/savings data to understand the financial…

Q: nunicipal solid-waste site for a city must be located at Site A or SiteB. After sorting, some of the…

A: *Answer: The calculus helps in understanding the changes between values that are related by a…

Q: Lachlan has a Jacaranda growing in his yard. One of the tree limbs is growing over into Dan's…

A: Introduction A gain is a general increase in the value of an asset or property. A gain refers…

Q: 2. What is the crowding- out effect? How does it modify the implications of the basic Keynesian…

A: Crowding out occurs when expansionary fiscal policy causes the interest rates to rise, thereby…

Q: Solve it correctly

A: Equilibrium price is the price at which quantity demanded equals quantity supplied and market…

Q: What would a straight-line production possibilities frontier between grape juice and apple juice on…

A: (Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: The EPA says the value of a human life is $9.4 million, measured from birth to death. If life…

A: According to the information given, the value of a human life is $9.4 million measured from birth to…

Q: 15 rs1 EIP 10 d1 11EQ 0369 1215182124 5. At a price of $8, country 1 will offer for export 9 units…

A: equilibrium is achieved at the output level where Qs=Qd

Q: 4. The change in consumer surplus as a result of the shift in the graph below is equal tor (a) 1050…

A: Consumer surplus is the area below the demand curve and above the equilibrium price level.

Q: Discuss the potential impact of utility computing.

A: As per the guidelines, only the first question can be answered.

Q: Average Incomes of Children - with Low Income Parents (51000) 45- 40- 35- 30- 25- Upward Mobility…

A: The housing sector's importance in the current economy stems from its significant effects on…

Q: Name: Name: Name: $/unit 25 1 Fertilizing Fish When farmers fertilize their fields, the nitrogen…

A: The objective of the question is to understand the concept of externalities in the market for…

Q: y can be a customer, bank, supplier, another system and __________ a. another department. b. another…

A: A bank is an institution that gives various financial services to individuals and other…

Q: ser passwords for the mainframe at a finance firm consists of five letters followed by two numbers.…

A: The multiplication rule of permutation states that if an event can occur in m1 different ways, 2nd…

Q: Stakeholders )of a company can include A-customers B.shareowners C- employees d -all the above

A: Stakeholders in a simple language are the persons who show their interest in the company and whose…

Q: The figure above shows a production possibilities frontier. In the figure, when the economy moves…

A: Opportunity cost refers to the cost of choosing one option or allocating resources to produce more…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: At a price of $14, country 1 will (a) offer for export 9 units of this product.…

A: The effect of price level of $14 in global market is given as follows:The world price line of $14…

Q: UNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE…

Q: 2. Compare the choices between offshore branch and offshore subsidiary.

A: Any (business) activity that is basically takes place outside of an entity's home base is referred…

Q: ording to the midpoint method, the price elasticity of demand between points A and B on the initial…

A: Elasticity is defined as the responsiveness to change in one variable.When changes in price will…

Q: where did 118.8 come from?

A: There is a slight mistake in the solution as per the solution given by the expert

Q: What is total revenue?

A: Revenue refers to that amount which a seller or a person gets after selling its goods and services.…

Q: Discussing the working of Multipier explain its leakages

A: A multiplier factor may be a term utilized in economic science to explain associate economic part…

Question

Activity 2
Assume a demand function:
Q = 25-3P + 9A + PA-1.2A² - 0.5P²
(Where Q= quantity; P= price and A= advertising expenditures in hundreds)
Derive/calculate the following:
Task
1. The partial derivative of price
2. The partial derivative of
advertising
3. The optimal value of P
4. The optimal value of A
5. The optimal value of Q
Answer

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

21.3 Exercises 21.1 Table 21.1 shows the total area, sun hours per day and energy consumption of five different countries. (a) If a PV system of 270W, is installed in each of these locations, in which country would it be best to place the panels to obtain the maximum output? Table 21.1 Country Area (km?) Daily sun hours Energy consumption (MWh/year) United States 9 826 675 4.0 3 886 400 000 India 3 287 263 5.0 959 070 000 Brazil 8 515 767 4.5 455 700 000 Spain 505 992 4.5 267 500 000 United Kingdom 243 610 2.5 344 700 000 (b) Now let us take a look at the United States. How much area, as a percentage of the total area of the US, would be needed to cover the total annual energy demand of the country with solar panels having an efficiency of 15%? (c) Which of the five countries would need to cover the highest percentage of their area with solar panels to supply all their electricity demand with solar energy? (d) Which of the five countries would need to cover the lowest percentage of…
A79. Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’? (a) Mobile wallets will not be necessary for online payments. (b) Digital currency will totally replace the physical currency in about two decades. (c) FDI inflows will drastically increase. (d) Direct transfer of subsidies to poor people will become very effective.
Typed plz And Asap thanks
3 Calculate the income taxes that a person has to pay considering the table below- If a person's income is $6,500, how much does he pay in taxes? If a person's income is $13,500, how much does she pay in taxes? (a) (b) Taxable Up to $5,000 $5,001-$10,000 $10,001-$15,000 Income Taxes 10% of taxable income 14% of taxable income 16% of taxable income
do it fast please
per ogr 82.00 20.00 17.50 16.00 12.00 10.00 7.50 6.00 2.60 250 500 750 1000 120 1500 1750 Quantity of ehrimp (in kilogram) Government of Canada has introduced deficiency payment program with a target price equal to $1750 per kilogram of Shrimp, Government spending under the program is Select one Oa $12,500 Ob $22500 Oc $15,000
5. It is a common practice in lending companies that the interest is deducted at the time money is borrowed. Mr. Anito applied a loan amount of P 50,000 with an interest rate of 16% per year. During the time he received the money, the 16% interest is being deducted and he received only P 42,000. At the end of one year, Mr. Anito has to pay P 50,000. What is the actual rate of interest?
1. A steel bar manufacturer business can make 15000 bar a week. It is determined that to achieve this production, the company need to spend 90000 pesos weekly for materials, utilities and transportation. The manager also pays a fixed cost of 10000 pesos per week. HOW MUCH per steel bar should they sell to gain a profit of 40% of the total cost?
ONLY NEED QUESTIONS 5,6,8,10 and 13
Based on the data, answer the questions. Earner Sally Pat What is Sally's tax rate? 38% 33% O 28% 24% Annual income amount $94551.00 $304557.00 What is Pat's tax rate? 0000 O 22% 31% 33% 24% Income tax amount $31201.83 $73093.68
What is residual item
8