Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Assume your company sells unique cell phone cases, and that demand is Q1 = 20 - 0.5P1.

a. Use calculus to find the level of output that maximizes total revenue. What price would you have to sell the cases to reach this level of output? How much total revenue would be earned?

b. find out the point elasticity of demand at this TR-maximizing price and quantity. Does the elasticity have the expected value? describe.

c. Now assume that demand conditions have changed such that Q2 = 25 - (1/1.2)P2. How much revenue would you earn if you continued selling the same quantity as you did in part a? find out the point elasticity when using your part a Q; should your company raise or lower its current selling price to maximize total revenue as a result of the new demand conditions?

d. Use calculus to determine the TR-max level of output, price, and TR (as you did in part a).

e. Using the two equations for demand, determine equations for MR as a function of Q. Make two graphs, one of P and MR for the Q1 = 20 - 0.5P1 demand, and one of P and MR for the Q2 = 25 - (1/1.2)P2 demand. Do the graphs confirm your earlier answers? Why or why not?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M971413

Have any Question?


Related Questions in Microeconomics

Question national circuit boards inc made 20100 printed

Question: National Circuit Boards Inc made 20,100 printed circuit boards in December consuming the following resources: Labor: 6,000 hours at $17.00 per hour What is the labor productivity per hour for these circuit boar ...

Question discuss the following - what features of medicare

Question: Discuss the following - What feature(s) of Medicare would cause an economist to say that "Medicare stinks as insurance"? Medicare supplement insurance is available from the commercial market and most commonly c ...

Question what does ambulance restocking mean and who pays

Question: What does "ambulance restocking" mean and who pays for it? How can fraud and abuse problems result? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA f ...

Question since we are at full employment draw a as-ad graph

Question: Since we are at full employment, draw a AS-AD graph showing us at full employment. Be sure to label everything. a. Now suppose oil prices double over the next 12 months. Draw and label the impact of the change ...

Question what is a trade war what are the consequences of a

Question: What is a trade war? What are the consequences of a trade war? What is the validity of the most frequently presented arguments for protectionism? What are the economic effects of tariffs and quotas? The respons ...

Question a manager is considering two technological lines

Question: A manager is considering two technological lines to produce candies. The first one requires $1 million in initial investment and produces 150 kilograms (kg) of candies per day. The second one requires $1.3 mill ...

Question a manufacturer of laptop computers operates a

Question: A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of his models is expected to sell 390,000 units in the coming year. How large should each product lot b ...

Question three firms are considering entering a new market

Question: Three firms are considering entering a new market. The payoff for each firm that enters is 150/n, where n is the number of firms that enter. The cost of entering is 62. Find all the pure-strategy Nash equilibri ...

Quesiton please read an article on international risks and

Quesiton: Please read an article on international risks and write a one-half page over view of what you have learned. Type your thoughts in the comments box and send send a hyperlink of the article. How does the risks yo ...

Question a soap producer has two types of customer a and b

Question: A soap producer has two types of customer, A and B. Each will buy at most 1 pound per week. Type A customers will pay at most $6 for it, and Type B will pay at most $4. Production cost is $2 per pound. Using a ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved