Campbell's sells used trailers, U, and new trailers, N. Its profits are given by p = 100N+68U-5N²-5U² - 2NU. The profit-maximizing combination of trailers for Campbell's is: N = 9 and U = 9. N = 9 and U = 5. N = 7 and U = 7. N = 13 and U = 0. N = 5 and U = 9.
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- Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm—Tile King. Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as Tile King to avoid the possibility of a price war. The pnce charged by Tile King is $20,000. Ajax has the following short-run cost curve: TC=800,0005,000Q+100Q2 Compute the marginal cost curve for Ajax. Given Ajaxs pricing strategy, what is the marginal venue function for Ajax? Compute the profit-maximizing level of output for Ajax. Compute Ajaxs total dollar profits.You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.17 of 16 BNW is one of many producers of luxury wheelchairs, which are differentiated to appeal to different market niches. BNW's Price per chair relevant demand and cost curves are depicted in the graph. $2,000 Average total Use this graph to answer the questions. Assume that there are 1,800 Marginal cost no significant barriers to entry. cost 1,600 Determine BNW's profit-maximizing price and quantity. 1,400 1,200 1,000 price per chair: $ 800 600 400 quantity of chairs: chairs 200 Demand Marginal revenue 100 200 300 400 500 600 700 800 900 Calculate BNW's profit. Chairs per week BNW's profit: $
- MonoMed, having a Patent on production of a medicine, has following Demand and CostSchedule: Price (Rs ): 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 In a Table calculate TR, MR, TC, AVC, ATC and MC at each price. Plot the Demand, Marginal Revenue MR, Average Total Cost ATC, Average Variable Cost AVC and Marginal Cost MC Curves of the Firm in a clearly labelled graph. Calculate the profit earned, if any and show the area on the firm’s graph. How would you define the market structure of MonoMed? What are the characteristics? Does the firm have pricing power? E) What will be the impact of the firm on societal welfare? Would there be welfare loss as compared to a competitive firm? If so, briefly explain. Support your answer using MonoMed’s graph in (b) above.Price Quantity Total Cost $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 $1,225 Sharon's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatment is given by the first two columns in the table above. The total costs are provided in the third column. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?Claritas, SRI International and similar segmentation providers rely on black box methodology True O False
- An online streaming company, Netflicks, has invested $100,000 in servers. The resale value of those servers is $70,000 if they never operate, and $0 if they operate. The marginal cost is $0. If they operate, the profit-maximizing price is $10, corresponding to a lifetime quantity of 6,000. O Netflicks should operate, because the marginal revenue is equal to the marginal cost. O Netflicks should operate, because the marginal cost is zero. O Netflicks should not operate, because they would be better off by selling their servers. O Netflicks should not operate, because their sunk cost is $100,000. O Netflicks should not operate, because the variable profits are less than $100,000.Predatory pricing occurs when a firm intentionally prevents competition by pricing their product at?Select the correct one : Do both state and federal law protect aganist trademark dilution? A) Only some states have trademark dilution laws, but there is no federal law. B) There is a federal law, but no state law. C) Both federal law and some states have trademark dilution laws. D) Every state has a law against trademark dilution, but there is no federal law. E) Every state has a law against trademark dilution and there is a federal law .
- TotsPoses Inc., a profit-maximizing business, is the only photography business in town that specializes in portraits of small children. George, who owns and runs TotsPoses, expects to encounter an average of eight customers per day, each with a reservation price (shown in the following table). Assume George has no fixed costs, and his cost of producing each portrait is $12. a. How much should George charge if he must charge a single price to all customer? At this price, how many portraits will George produce each day? What will be his economic profit? b. How much consumer surplus is generated each day at this price? c. If George is very experienced and knows the reservation prices of each customer, how many portraits will he produce each day and how much economic profit will he earn? d. Assume George charges only 2 different prices. He know that customers with reservation prices above $30, will never use coupons and the customers with reservation prices below will always use…Macmillan Learning A firm with market power makes self-cleaning jackets. At a price of $94 each, it can sell 19 jackets. At a price of $92 each, it can sell 20 jackets. When charging $94 per jacket, total revenue is When charging $92 per jacket, total revenue is So the marginal revenue of selling the last jacket is $ $Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in thousands) 33 30 27 24 21 18 15 12 63 15 Price: $ 45 30 60 Quantity per period (in thousands) MC D 75 105, 135, 165 90 120 150 MR coordinates: pt 1 2 x 0 SAVE y 0 a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors' profit-maximizing output and price? Output: thousands thousands c. Suppose that the government of Lidia imposes a price ceiling of $9,000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: [ thousands d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousands