The inverse demand for organic dog food is given by P₁ = 26 - 2Q1, and the inverse demand for conventional dog food is given by P₂ = 10 - Q2, where P is the price of dog food in USD/lb, and Q is the quantity of dog food in thousand pounds. The cost of producing dog food is C(Q) = 2Q. The profit-maximizing quantity of organic dog food is equal to (1000s): 08 06 02 O 6.5

The inverse demand for organic dog food is given by P₁ = 26 - 2Q1, and the inverse demand for conventional dog food is given by P₂ = 10 - Q2, where P is the price of dog food in USD/lb, and Q is the quantity of dog food in thousand pounds. The cost of producing dog food is C(Q) = 2Q. The profit-maximizing quantity of organic dog food is equal to (1000s): 08 06 02 O 6.5

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

See similar textbooks

Similar questions

Demand for Corn Flakes is: P = 10 - Q. Supply of Kellogg's Corn Flakes is: P = 2 + Q. Now a generic company enters the market, selling generic Corn Flakes for $3. Assume consumers are indifferent between generic and Kellogg's Corn Flakes. When the generic corn flakes enter the market, Kellogg's will sell how many less boxes of their own cereal? Enter as an absolute value (NOT a negative number).
Suppose that the demand for a product is given by the following demand function; Q = 500 - 3P. If you set price at dollar 100 per unit how many unit will you sell?
Given the following demand function for beef (kg), P = 200 – 5Q i) By how much would the price have to fall for consumers to be willing to buy 1 more kg of beef per day? ii) If the price decreases by N$0.9, by how much will the demand changed?
QUESTION FOUR Suppose the weekly demand functions for coca cola and Pepsi in Ndola are given by: Qcoke=45 +200P pepsi - 250P coke QPepsi = 45+ 200P Coke - 250PPepsi Where Qcoke and QPepsi are the number of cans coke and pepsi sell, respectively in thousands per week. Marginal cost is k0.30 per can. Calculate the optimum price level for coke and pepsi.
If you are selling Mercedes-Benz cars in your showroom, what product "substitutes" are available to your prospective customers?
A movie theater has been charging $ 10.00 per person and selling about500 tickets on Saturday and Sunday nights. After surveyingtheir customers, theater owners estimate that for every 50 cents theylower the price, the number of attendees will increase by 50 per night.Find the demand function and calculate the consumption surplus whentickets are sold for $ 8.00.
The inverse demand for organic dog food is given by P1 = 24 - 2Q1, and the inverse demand for conventional dog food is given by P2 = 12 - Q2, where P is the price of dog food in USD/lb, and Q is the quantity of dog food in thousand pounds. The cost of producing dog food is C(Q) = 2Q. %3D The profit-maximizing quantity of organic dog food is equal to (1000s): O 6 5.5 O 2
Viking Publishing House observed that in the recent years books on nature conservation and climate change have been very popular. As a matter of fact, Jane Goodall's latest book, "The Book of Hope: A Survival Guide for an Endangered Planet" has been a best-seller and Viking estimates the following demand curve for the book: P = 150 - Q In this equation, P is the price of the book and Q denotes yearly sales in thousands 20,000 books would be expressed as Q = 20 books. In other words, Viking estimates that it incurs a cost of $40 for printing and shipping of each book and pays a $10 royalty to Jane Goodall for each book sold. a. Calculate the profit maximizing OUTPUT and PRICE for this book. Also, calculate the TOTAL PROFITS.
suppose for commodity X, the price elasticity of demand is 3 and the marginal cost is RM200. compute the optimal price.
The demand function for Bulova watches (X) has been estimated to be QX = 1,000 - 1.5PX + 2Y + 1.75Py where Y is income, QX is the quantity demanded of Bulova watches in units, PX is the price per unit of a Bulova watch and PY is the price of a Patek Philippe watch (Substitute). When P = $3, PY = $10 and Y = $20, determine the price elasticity of demand. a. 0.0057 b. 0.0043 c. 0.0014 d. None of these are correct
Demand for Corn Flakes is: P = 10 - Q Supply of Kellogg's Corn Flakes is: P = 2 + Q Now a generic company enters the market, selling generic Corn Flakes for $4. Assume consumers are indifferent between generic and Kellogg's Corn Flakes. How many boxes of generic Corn Flakes will sell?
The demand equation for school lunches is x=100-10pwhere x is the number of lunches purchases and p is the price in dollars. Which of the following represents E(p)? A) p/10-p b) -p/10-p c) p/20-p d) -p/100-10p e) p2/100-10p