(Answered) Assume that you are the manager of anbspfirm that operates

Economics

Assume that you are the manager of a firm that operates in a monopolistically competitive industry. You hired an economist to estimate the demand and cost equations of your company to verify if you have been maximizing profit by producing the profit maximizing output and charging the profit maximizing price. The following are the demand and total cost equations the economist has estimated for you.

P = 600 - 20Q

C(Q) = 700 + 160Q + 15Q²

a. What are your profit maximizing output and price?

b. How much profit do you make?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M93059631
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

Part a the mean of the sample was calculated as 500 the

Part a) The mean of the sample was calculated as 500. The sample of 25 observations was randomly drawn from a population whose standard deviation is 15. Estimate the population means with 99% confidence. Part b) A random ...

An egg farmer wanted to determine if increasing the amount

An egg farmer wanted to determine if increasing the amount of time the lights were on in his hand house would increase egg production. For example of 8 chickens he determined the production before and after increasing th ...

Assume that a perfectly competitive firm has the following

Assume that a perfectly competitive firm has the following revenue and cost functions: TC= 5625 +5Q + 0.01Q^2 AVC=5 + 0.01Q MC=5 + 0.02Q TR=20Q A) What is the level of output that maximizes profits, if any? Compute profi ...

Assume the following for the town of boone it has a total

Assume the following for the town of Boone: it has a total population of 40,000 people, of which 1,000 are under 16 years of age or are institutionalized; 8,000 are full-time students who are not employed and are not see ...

Explain the real-nominal principle in detail this is from

Explain the real-nominal principle in detail? This is from Economics course.

1population parametric mean 53501standard deviation

1) Population (parametric) mean= 53.501 Standard deviation = 1.79208 Imagine that 5 individuals are sampled at random from this population. Calculate the probability that the average calculated will be less than the valu ...

The increase in prescription drugs cost increases the drug

The increase in prescription drugs cost, increases the drug companies profit. Should there be restrictions to lower consumer cost and how much of their profit should be reinvested into research and development?

What is the role of local government leadership in assuring

What is the role of local government leadership in assuring that departments and divisions work together to achieve municipal goals and objectives?

Espn pays the nfl 11 billion per year for 8 yrs for the

ESPN pays the NFL $1.1 Billion per year for 8 yrs for the right to exclusively televise football. What is the NPV of the investment if the parent Disney CO has an opportunity interest rate that is equal to the cost of ca ...

Answer in true or false1 in the circular flow model firms

Answer in true or False : 1) In the circular flow model, firms sell the services of factors of production to households 2) If GDP included the value of leisure time, the value of US GDP would most likely increase. 3) GDP ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert