2P. The monopolist’s total cost function is TC = 5+8Q2. What is the monopolist’s profit-maximizing level of output and price? Answer Step 1. Derive the MR and MC functions. Since Q = 100 - 2P‚ P = 50 – (Q/2) TR=P*Q=(50-1/2Q)Q=50Q-1/2Q2 MR=dTR/dQ=50-Q MC=dTC/dQ=16Q Step 2. Set MR=MC and solve for P*‚ Q* MR=MC 50-Q=16Q Q*=2.94 or 3 (rounded) P*=50-1/2Q*=50-1/2*3=48.5 2. Assume a monopolist faces a market demand curve P = 130 – 2Q‚ and has the short-run total cost function TC = 350 + 10Q.
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where marginal revenue equals marginal cost of the marginal unit is greater than the revenue it brings in. Oligopolies are a market with a small number of sellers‚ where the sellers interact strategically with each other. Each player tries to guess which the competitor is trying to do. There are usually a small amount of large firms and they usually control the market. Competitive firms will use the firms marginal cost to produce the price. The price of the good must be lower than the cost to produce
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Thomas Money Service Incorporated Business Analysis Leslie (Scott) McCrory ECO/561 Economics March 14‚ 2011 Facilitator David Francom Thomas Money Service Incorporated Business Analysis Executive Summary Thomas Money Service Incorporated is a consumer finance company‚ and conducted business successfully for 71 years. The organizations primary financing services pertained to commercial real estate and business loans. In 1946‚ the company decided to incorporate a subsidiary business to
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X 410 “Business Applications of Calculus” PROBLEM SET 1 [100 points] PART I As manager of a particular product line‚ you have data available for the past 11 sales periods. This data associates your product line’s units sold “x” and total PROFIT “P” results for these sales periods. Product Red03 Units [x] Profit [P] 10 20 100 130 190 240 300 320 380 430 500 -33986 -31792 -9200 790 21418 37728 54000 58208 65840 65050 50000 1 Section A: 1st Order Model
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HW 2 Managerial Economics‚ ECON 601 1. Consider the following short-run production function (where L = variable input‚ Q = output): Q = 6L2 – 0.4L3 |a. |Determine the marginal product function (MPL). (5 points) | |b. |Determine the average product function (APL). (5 points) | |c. |Find the value of L that maximizes Q. (5 points)
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Decision Making 13.3 Types of Costs 13.4 Types of Choices Decisions 13.5 Make or Buy Decisions 13.6 Addition / Discontinuance of a Product line 13.7 Sell or Process Further 13.8 Operate or Shut down 13.9 Exploring New Markets 13.10 Maintaining a desired level of profit 13.11 Summary 13.12 Terminal Questions 13.13 Answers to SAQs and TQs 13.1 Introduction In the previous unit we learnt about Marginal Costing. Marginal costing is the ascertainment of marginal cost and of the effect on profit
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Get fully solved assignment‚ plz drop a mail with your sub code computeroperator4@gmail.com Charges rs 125/subject and rs 700/semester only. if urgent then call us on 08791490301‚ 08273413412 our website is www.smuassignment.in Fall 2014 MB0041- FINANCIAL AND MANAGEMENT ACCOUNTING Q1. Analyze the following transaction under traditional approach. 18.1.2011 Received a cheque from a customer‚ Sanjay at 5 p.m. Rs.20‚000 19.1.2011 Paid Ramu by cheque Rs.1‚50‚000 20.1.2011 Paid salary Rs. 30‚000 20.1
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would lead to higher losses equal to fixed costs and these losses would be more than the current losses. In the second graph‚ the firm is realizing a profit because P > ATC. Consequently‚ it should continue to operate as long as P > AVC. In the third graph‚ the firm should shut down because P < AVC. This is its loss minimizing choice as the losses will be lower than the current losses if they produce. 3) The following graph shows the cost curves for a perfectly competitive firm.
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price and costs‚ and also providing healthy food in the vending machines. Chosen methods to determine profit-maximizing quantity SD D N A SA Yes No Strategies for placing vending machines and determining prices in a way that would attract consumers were included in the paper. Use of concepts of marginal cost and marginal revenue to maximize profit SD D N A SA Yes No The concept and affect on Marginal cost and revenue
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Cost of Capital Definition: cost of capital is the rate of return that a company must earn on its project investments to maintain its market value and attract funds. The cost of capital to a company is the minimum rate of return that is must earn on its investments in order to satisfy the various categories of investors‚ who have made investments in the form of shares ‚ debentures and loans. The cost of capital in operational terms refers to the discount rate that would be used in determining the
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