Suppose that you are a manager for a firm like EBC Brakes, which manufactures brakes for automobiles and motorcycles. Your company has two plants, one in the United States and the other in the United Kingdom. The following tables include estimated demand and marginal revenue for your brakes, along with the marginal costs at the two factories. what quantity and price maximize your firms profit? What is the profit – maximizing number of brakes produced in the U.S. plant? In the U.K. plant? Quantity Demanded (brakes per hour) Price (dollars per brake) Quantity Produced in the U.K. plant (brakes per hour) Quantity Produced in the U.S. (brakes per hour) Total Quantity Produced Marginal Cost (dollars per brake) Marginal Revenue (dollars per brake) 104 196 47 42 89 66 92 105 195 48 44 92 68 90 106 194 49 46 95 70 88 107 193 50 48 98 72 86 108 192 51 50 101 74 84 109 191 52 52 104 76 82 110 190 53 54 107 78 80 111 189 54 56 110 80 78 112 188 55 58 113 82 76 113 187 56 60 116 84 74 114 186 57 62 119 86 72
Suppose that you are a manager for a firm like EBC Brakes, which manufactures brakes for automobiles and motorcycles. Your company has two plants, one in the United States and the other in the United Kingdom. The following tables include estimated demand and marginal revenue for your brakes, along with the marginal costs at the two factories. what quantity and price maximize your firms profit? What is the profit – maximizing number of brakes produced in the U.S. plant? In the U.K. plant? Quantity Demanded (brakes per hour) Price (dollars per brake) Quantity Produced in the U.K. plant (brakes per hour) Quantity Produced in the U.S. (brakes per hour) Total Quantity Produced Marginal Cost (dollars per brake) Marginal Revenue (dollars per brake) 104 196 47 42 89 66 92 105 195 48 44 92 68 90 106 194 49 46 95 70 88 107 193 50 48 98 72 86 108 192 51 50 101 74 84 109 191 52 52 104 76 82 110 190 53 54 107 78 80 111 189 54 56 110 80 78 112 188 55 58 113 82 76 113 187 56 60 116 84 74 114 186 57 62 119 86 72
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Suppose that you are a manager for a firm like EBC Brakes, which manufactures brakes for automobiles and motorcycles. Your company has two plants, one in the United States and the other in the United Kingdom. The following tables include estimated demand and marginal revenue for your brakes, along with the marginal costs at the two factories.
- what quantity and
price maximize your firms profit? - What is the profit – maximizing number of brakes produced in the U.S. plant? In the U.K. plant?
|
Quantity Demanded (brakes per hour) |
Price (dollars per brake) |
Quantity Produced in the U.K. plant (brakes per hour) |
Quantity Produced in the U.S. (brakes per hour) |
Total Quantity Produced |
Marginal Cost (dollars per brake) |
Marginal Revenue (dollars per brake) |
|
104 |
196 |
47 |
42 |
89 |
66 |
92 |
|
105 |
195 |
48 |
44 |
92 |
68 |
90 |
|
106 |
194 |
49 |
46 |
95 |
70 |
88 |
|
107 |
193 |
50 |
48 |
98 |
72 |
86 |
|
108 |
192 |
51 |
50 |
101 |
74 |
84 |
|
109 |
191 |
52 |
52 |
104 |
76 |
82 |
|
110 |
190 |
53 |
54 |
107 |
78 |
80 |
|
111 |
189 |
54 |
56 |
110 |
80 |
78 |
|
112 |
188 |
55 |
58 |
113 |
82 |
76 |
|
113 |
187 |
56 |
60 |
116 |
84 |
74 |
|
114 |
186 |
57 |
62 |
119 |
86 |
72 |
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