7 (ii)There are 50 ships using a rocky harbor. Each has the same demand for lighthouseservice X:X = 20 - P/2(a) What is the aggregate demand for lighthouse services?(b) If the marginal cost of having a lighthouse is $100 per unit of service, how muchlighthouse service should there be?

A public good is non-rival and non-excludable in nature. The aggregate demand curve of a public…

Answered: There are 50 ships using a rocky…

Business

Economics

There are 50 ships using a rocky harbor. Each has the same demand for lighthouse service X: X = 20-P/2

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 2.1IP

See similar textbooks

Similar questions

Consider the market for good x for which there is one firm controlling the market.D(q)=165-10qMC(q)=5q+15MR(q)=165-20qC(q)=2.5q^2+15q+8 (a) Find the point of equilibrium. (b) How many units must the firm produce and sell to maximize its profits? (c) What will be the price the firm will charge to consumers?
DrivingNowhere is producing automobile spare parts. Consider the following data to answer below given questions. Annual demand 30500 Daily demand 100 Daily production 800 Desired lot size 200 Holding cost per uit per year $10 (a) Compute the setup cost so as to comply with the desired lot size. (b) Compute the setup time if hourly setup labor cost is $40.
1. The marginal price ?? ?? at ? units of demand per week is proportional to the price p. There is no weekly demand at a price of $1000 per unit, that is ?(0) = 1000. There is a weekly demand of 10 units at price of $367.88 per unit, ?(10) = 367.88. (A) Find the price-demand equation. (B) At a demand of 20 units per week, what is the price? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You’ve been given a firm’s production and cost functions:p = 132 −2qMC = 12 + 4q(a) Assume this firm is in a perfectly competitive market. Calculate the equilibrium price andquantity.(b) What is the firm’s profit here?(c) Assume this firm is in a monopoly market. Calculate the equilibrium price and quantity.(d) What is the firm’s profit here?(e) Give an example of a perfectly competitive agricultural market, and give an example of amonopoly agricultural market.
A monopolist faces a demand curve given by q = 32 − 0.5p. Its costs are given by 0.5q2 + 100. (a) What is the monopolist’s profit maximizing choice of output? At what price does it sell its product? (b) Draw a graph that illustrates the monopolist’s choices. (c) If this were a competitive market, what would be the equilibrium price and quan- tity? (d) If the monopolist were forced to sell its output at the price that would arise in the competitive market, would it still be able to make a profit?
Assume demand for a particular product is given by p= 120 - q and firms produce with costs c(q) = cq+F=20q+ F, i.e., with a marginal cost of 20 and a fixed cost F. (a) Suppose there is a monopolist in the market. (i) How do average costs depend on output? How do we label this relation and what does it mean? (ii) Derive optimal production, price and profits of the monopolist. For what range of F does the monopolist operate? (b) s] Suppose a second firm enters the market and the two firms share the market equally, i.e., each firm is still a monopolist but instead of a total demand of q = 120-p she now faces a demand of q = 60 - 0.5p. Derive optimal production, price and profits for one of the two firms. For what range of F do the two firms operate? (c) [ s] Suppose F is such that either one or two firms can operate. (i) In which case is the sum of consumer surplus and profits higher and why? (ii) Do you expect a market structure with one or two firms in this market an why? How do we…
21. Maximum revenue and profit. A company manufactures and sells x television sets per month. The monthly cost and price-demand equations are C(x) = 72.000 + 60x P3D200 0 < x < 6,000 30 (A) Find the maximum revenue. (B) Find the maximum profit, the production level that will realize the maximum profit, and the price the company should charge for each television set. (C) If the government decides to tax the company $5 for each set it produces, how many sets should the company manufacture each month to maximize its profit? What is the maximum profit? What should the company charge company for each set?
Refer to the Figure below. In Panel (b), the increase in total cost of producing the original quantity of output at the new cost associated with increased environmental regulations would be $ $ P₂ P₁ P₂ P₁ a Demand ₂ e (a) Demand 92 91 Quantity of output (b) 4₁ Quantity of a) p2 x r₁. b) (d + e + f). c) p2 x r₂. G₂ C₁ G₂ C₁₁
Suppose the inverse market demand function is p(q) = 10 + 125/q, p, q ≥ 1 and the market supply function is q(p) = 4p, p, q ≥ 1. (a) Graph the market demand and supply functions as accurately as possible. (b) Find the equilibrium price and quantity. (c) Show that the demand is elastic. (d) Find the value of MR = d(pq)/dq. (e) If there is a quantity tax of t = $2.5/unit, show how much of the tax burden that will be passed to the consumer.
Assume demand for a particular product is given by p= 120 q and firms produce with costs c(q) = cq+F=20q+ F, i.e., with a marginal cost of 20 and a fixed cost F. (a) Suppose there is a monopolist in the market. (i) How do average costs depend on output? How do we label this relation and what does it mean? (ii) Derive optimal production, price and profits of the monopolist. For what range of F does the monopolist operate?
Problem 1 A lash adjuster keeps the pressure constant on engine valves, increasing automobile engines' fuel efficiency. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation: D=(2,000-p)/0.10. 6 a) What is the demand (D) when total revenue is maximized? b) What important data are needed if maximum profit is desired? & 7 IAA fg 8 DII myhp np f10 DDI 9 fi Po 112 prt sc
The price p and the quantity x sold of a certain product obey the demand equation below. x= -8p +176, 0sps22 (a) Express the revenue R as a function of x. (b) What is the revenue if 144 units are sold? (c) What quantity x maximizes revenue? What is the maximum revenue? (d) What price should the company charge to maximize revenue? (e) What price should the company charge to earn at least $576 in revenue? (a) R(x) =