The inverse demand for organic dog food is given by P1 = 24 - 2Q1, and %3D the inverse demand for conventional dog food is given by P2 = 12 - Q2, %3D 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): 6 8. 5.5 O 2

The inverse demand for organic dog food is given by P1 = 24 - 2Q1, and %3D the inverse demand for conventional dog food is given by P2 = 12 - Q2, %3D 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): 6 8. 5.5 O 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q1: Analytical part - 8% Best Orange Juice Company is located in Oman. The cost function for total orange juice production (x) is given by C(q) = 0.25x2. Their orange juice is demanded only in Muscat (Muscat demand is Xm- 100-2Pm) and Salalah (Salalah demand is X 100-4Ps). Therefore, the total demand is x-xm+ Xs. If the company can control the quantities supplied to each market, how many should it sell in each location to maximize total profits? What price would it charge in each location? Answer:
A local store estimates its typical customer's inverse demand is P= 7.8 – 1.9Q. and it knows the marginal cost of each rental is $0.74. If they use block pricing, what should the price for the entire package? (use decimals) Answer:
A fried chicken franchise finds that the demand equation for its new roast chicken product, "Roasted Rooster," is given by 9 = 42 p0.6 where p is the price (in dollars) per quarter-chicken serving and q is the number of quarter-chicken servings that can be sold per hour at this price. Find E(p) E(p) Find the price elasticity of demand when the price is set at $4.20 per serving. At a price of $4.20, a 1% increase in price leads to a Interpret the result. % decrease in demand. At a price of $4.20, the demand is ----Select---- They should ----Select----✓ the price per serving in order to increase revenue.
You are given the following information about the market for Birkin Bags: The formula for Demand is as follows: Qd: 400,000-10*P. It's Cost Function is 20,000,000 + 6000 Questions: (1) What is the price (P) where REVENUE is maximized? (2) What is the price (P) that maximizes PROFITS? (3) What is the QUANTITY (Q) that maximizes profits at that price? (4) What are TOTAL PROFITS at that price?
The marketing research department for a company that manufacturers and sells gaming systems established the following price-demand function p(x)=240-30x Where p(x) is the wholesale price in dollars at which x thousand gaming systems can be sold, Find the revenue function when x thousand units are demanded Find the value of x that will produce maximum revenue. What is maximum revenue to the nearest thousand dollars? What is the price per gaming system that produces the maximum revenue?
Netflix is increasing its streaming service from $9.99 per month to $10.99 per month. Which is must be true? a) They will lose less than 5% of subscribers b) They will not lose any subs c) They will lose no more than 20% of their subs d) They will lose less than 10% of their subs
Given a demand of q = 100 – 5p and a cost of c(q) = 4q. What is the equilibrium retail price p, wholesale price w, and profits from the manufacture and sale of the product?
Please solve this problem? THANK YOU
Parts B and C
Smooth Sailing, Inc., has estimated the demand function for its sailboats (quantity purchased annually) as follows: QD= 89,830-40PS+20Px+15Py+2I+0.001A+10W Where, QD = quantity purchased, PS = the price of smooth sailing sailboats, PX = the price of Company X’s sailboat, PY = the price of Company Y’s motorboat, I = per capita income in dollars, A = dollars spent on advertising, and W = number of favorable days of weather in the southern region of the United States. Suppose that PS = $9,000, PX = $9,500, PY = $10,000, I = $15,000, A = $170,000, and W = 160. Find the price elasticity of demand at that point. Is elastic, inelastic, or unitary elastic in part (a)? Justify?
The manager of a bicycle shop has found that, at a price (in Rands) of p(x) = 150 –x/4 per bicycle, x bicycles will be sold . Answer the following:• Find an expression for the total revenue from the sale of x bicycles. (Hint: Revenue = Demand *Price. )• Find the expression for the quantity to be sold q if the demand function demand is given byp = -10q + 3200• What is the number of bicycles x, sold if the price is R40
A firm produces a good at a marginal cost of $20 per unit and sells it for $40 per unit. It currently has an inventory of 500 units, and P = 30 - .05Q describes its current demand curve. In these circumstances, what is the firm’s optimal price?