Determine the profit maximizing output and amount of, Ask an Expert

Economics

Given the market demand and supply schedules in a perfectly competitive market:

Q(d) = 50 - 4P and Q(s) = -6 + 3P and given the total cost function for the firm:

C= 20 + 12Q - 4Q^2 + .5Q^3

a) Determine the profit maximizing output and amount of profits for the firm.

b) Check second order conditions.

c) If the market demand increases to Q(d) = 57 - 4P, determine the new profit maximizing output and profits.

d) Check second order conditions.

e) Explain whether this model represent a short run or long run time horizon.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9443240

Have any Question?Write your Review or question?

Related Questions in Business Economics

Do you think that the taxicab industry in large cities

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

The often made statement that inflation greases the wheels

The often made statement that inflation? "greases the wheels of the labor? market" means simply that A. high and unanticipated inflation allows for real wage adjustments when nominal wages are? sticky, thereby permitting ...

What does the term the ten principles of economics and how

What does the term the Ten Principles of Economics and how it's applied to the consumer buying trends?

A recent study showed that 76 of marketers complete

A recent study showed that 76% of marketers complete transactions online. Suppose a random sample of 600 marketers is taken. What is the probability that between 426 and 480 marketers in the sample complete transactions ...

Consider a banking model with delegated monitoring markets

Consider a banking model with delegated monitoring. Markets are perfectly competitive. There is a large number of borrowers who lack the funds and a large number of lenders who have the funds. Each lender has 10 goods to ...

Is the following an example of a binomial experimentat a

Is the following an example of a binomial experiment? At a campus activities board event, an entertainer gives tickets with sequential numbers to every attendee (i.e. 1, 2, 3, 4, 5... n). Throughout the event, the entert ...

Identify a recent mergeracquisition and use it to and

Identify a recent merger/acquisition and use it to and explain: was the merger/acquisition predominately about gaining economies of scale or economies scope?

A firm produces product a and product b this years sales

A firm produces Product A and Product B. This years sales price of Product A have decreased tremendously, and the sale of Product B has increase by 10 percent. The firm has threeemployees that can produce Product A and f ...

Television viewing reached a new high when the global

Television viewing reached a new high when the global information and measurement company reported a mean daily viewing time of 8.35 hours per household. Use a normal probability distribution with a standard deviation of ...

Toms income is 480and he spends it on two goods x and y his

Tom's income is $480and he spends it on two goods, X and Y. His utility function is U = XY. Both X and Y sells for $8 per unit. a. Use lagrangian function to calculate Tom's utility-maximizing purchases of X and Y. b. I ...

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