In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC=10Q²-5Q +20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 -2,000P. (a) Solve for the market clearing condition
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In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC=10Q²-5Q +20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 -2,000P. (a) Solve for the market clearing condition.
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- In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC=10Q²-5Q +20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 -2,000P. (a) Solve for the market clearing condition.In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC = 10Q2 − 5Q + 20 and a LRMC MC = 30Q3 - 10Q + 20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 - 2,000P. (a) Solve for the market clearing condition.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Required. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.? 2. Now consider two cases: (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit…
- Question Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Now consider two cases (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies…Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 60 + 0.10x + 0.001x² dollars. (a) Calculate the marginal profit function, in dollars per copy. P'(x) = (b) Compute the marginal profit, if you have produced and sold 500 copies of the latest edition. When you produce and sell 500 copies, the marginal profit is dollars per copy. Interpret the results: The approximate loss from the production and sale of the 501st сорy is dollars.Q2)Tony Keonte owns a factory that manufactures Eye-Games. His weekly profit (in thousands of dollars) is given by the following function: P(x) = -4x2 + 80x- 300. Where x is the number of Eye-Games sold. a) What is the largest number of Eye-Games that the company can sell and still make profit? (25 points) b) How many Eye-Games will the firm have to produce and sell in order to maximize profit? (25 points)
- A toy manufacturer's cost for producing q units of a game is given by Ca) =1450 +3.69 + 0.0006g. If the demand for the game is given by p = 8.6 - 4409 how many games should be produced to maximize profit? (Round your answer to the nearest integer.). 888 X gamesIn the market for foam fire retardant there is only one firm. The demand func-tion for the product is Q = 15,000 – 10P where Q is the annual sales quantity in tons and P is the price per ton. The firm’s total cost function (in dollars) is C = 1,400,000 + 300Q + 0.05Q2.a) How much foam fire retardant should this firm produce and sell in order to maximize its profit? What price should it charge?b) Compute the firm’s total profit.c) Suppose now that the firm faces a 20% increase in variable costs. Determine what impact this will have on the firm’s optimal choice.ADTF Distributors produces and sells a line of virtual sketch pad devices with a micro-USB connection. They find that their profit when producing and selling x devices changes according to the marginal profit function P'(x) = 60 -0.1x. dollars per device. They also know that when only 10 devices are produced and sold their loss can be expressed as P(10) = -650. (a) Find the function for the total profit from producing and selling x virtual sketch pad devices: P(x) = (b) Use your answer to part (a) to complete the following sentence. When ADTF Distributors produces and sells 603 virtual sketch pad devices, we predict that their total profit will be $ (c) From the profit function, we can conclude that the fixed costs when producing the devices is $ Given that the variable costs of the production are $27 per device, then the total cost to produce 603 virtual sketch pad devices will be $ (d) When 603 devices are produced and sold, the selling price must be $ Hint: First, find the total…
- A group of management students are creating a business plan for their proposed shoe brand SoleSearching. The total production cost of x pairs of shoes is expected to be given by C(x) = x² +500x + 8000 pesos. The group intends to sell at p(x) = 1000 - x pesos per pair. 1 1. What will be the marginal profit when 100 pairs are sold? 2. At what production level will the average cost per pair be at a minimum? (Perform SDT)Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) b. consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies available to the company.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) A.Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. B.Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…
