Glyde Air Fresheners is the price leader in the solid room aromatizer industry, which has a total market demand given by Q = 802P. Glyde has competition from a fringe of four small firms that produce where their individual marginal costs equal themarket price. The fringe firms each have total costs given by TC;=10Q;+2Q2 and MC-10+4QiGlyde's total costs are given by TCG = 100 + 6QG and MCG = 6a. Complete the followers' supply equation QS=b. Complete Glyde's residual demand equation (Q-QS). QG=c. Compute Glyde's profit maximizing output level QG*=(Hint: 1. Set P=MC; 2. Solve P=10+4Q; for Qi. 3. QS-N*QS.)and Price PG=$d. Compute the output level produced by four firms Qs=and the total market output level Q*=

b. Glyde's residual demand equation is:QG = Q - QsQG = 80 - 2P - 125QG = -45 - 2Pc. Glyde's profit…

Answered: Glyde Air Fresheners is the price…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

See similar textbooks

Similar questions

A firm with two plants, A and B, has the following estimated demand and marginal cost functions: Qd 120 10P MCA = 4+ (1/5)QA MCB = 6 + (1 / 10) QB What is the firm's total marginal cost function? Multiple Choice MC = 24 +(1/50) Q MC 10+ (3/15) Q = MC = (80/15)+(1/15)Q MC2+(1/10)Q
Acme Co. manufactures widgets. The variable cost per unit is $17. The fixed cost per unit is $9. The desired ROI per unit is $6. What is the target selling price?
You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 2Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 18Q.Instructions: Enter your responses rounded to the nearest two decimal places.a. What is the socially efficient level of output? unitsb. Given these costs and market demand, how much output would a competitive industry produce? unitsc. Given these costs and market demand, how much output would a monopolist produce? unitsd. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.Instructions: For correct answers place a check mark. check all that apply Nonrival consumptionunanswered Pollution taxesunanswered Pollution permitsunanswered
a company manufactures computers . The variable cost of producing a computer is 2 TL and the fixed cost is 3TL.The demand equation for this product is p=8-lnx. Here X: shows the number of computers , p: shows the price of a computer. How Much Should a computer be sold for to make a maximum profit A)1 B)10 C)2 D)5 E)3
i need the answer quickly
Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans
Consider two different cost structures for the same firm. The first has higher variable costs per unit (V=56) but lower fixed cost (F=2,107). If the firm invests in a labor saving machine the cost structure will tip towards fixed costs with variable cost per unit V34 and fixed costs Fa3,582. The selling price is the same for both scenarios P=100) and the current level of production is 80. Calculate the profit under each soenario and how that changes as unit sales increase to 100; also, as they decrease to 60. What is the percent change in profits from 80 units to 100 units under the scenario with higher variable costs?
Rakesh
1. XY Company manufactures and sells LCD monitor at P5000 each. Compute the following: (a) total variable cost (b) total fixed cost (c) total cost (TC) function (d) total revenue (TR) function (e) profit function (f) the break-even quantity (g) the break-even sales revenue, when the production officer reported the following: > Sale price: P5000 per monitor > direct materials cost: P1000 per unit > direct labor cost: P550 per unit > other overhead cost P950 per unit Fixed costs related to the production are also reported: > salary of management: P200,000 > rent for the factory: P150,000, > other salaries: P140,000 > depreciation of equipment: P12,000
For a certain product, the linear demand curve is described by the equation, Quantity = 15,449 - 405 * Price. Variable cost to manufacture this product is $8 per unit. Calculate optimal price for this product. Rounding: penny.
Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.05 per pound and costs $14.35 per pound to produce. Product D would sell for $40.95 per pound and would require an additional cost of $10.35 per pound to produce. What is the differential cost of producing Product D? a.$6.21 per pound b.$10.35 per pound c.$12.42 per pound d.$8.28 per pound
Banfield Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below: VP YI WX Selling price per unit $ 248.04 $ 230.66 $ 505.44 Variable cost per unit $ 190.71 $ 172.14 $ 388.80 Centiliters of compound W 3.90 3.80 8.10 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. WX, VP, YI VP, WX, YI YI, VP, WX WX, YI, VP Generally speaking, net operating income under variable and absorption costing will: never be equal. always be equal. be equal only when production and sales are equal. be equal only when production exceeds sales. The three basic elements of manufacturing cost are direct materials, direct labor, and: cost of goods manufactured. work in process. cost of goods…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS