Due to operating cost already high the firm carlo amp you, Ask an Expert

Economics

Due to operating cost already high, the firm Carlo & You Energy Drink Inc. (an oligopoly) seeks your advice on whether to advertise or not and provides you with the following information:

Advertising Non- Advertising
P Q TR MR P Q TR MR
22 3                  22 0
21 4                  21 1
20 5    20 1
18 5                 18 2
15 8 15 3
14 9 14 4
13 10 13 5

a. Find the total revenue and marginal revenue in both situations.

b. With a $16 unit cost, what is the firm's profit maximizing production?

c. The radio advertisement costs $600 a month (30 days), find the firm's profit per case of energy drink (hint: consider daily advertisement cost)

d. Should the firm advertise or not? Explain your rationale.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91606927

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question write a short essay of about 750 words each on the

Question: Write a short essay of about 750 words each on the following topics: What are the common defenses of protectionism? Evaluate them. Explain Coase Theorem and show how it works with examples. How does Mancur olso ...

Assignment 2 writing assignment costs and revenues

Assignment 2: Writing Assignment: Costs and Revenues Structures If viewing this through the Assignment tool, click the title above to go to the Submissions area. This assignment will enable you to: Create tables to illus ...

Question in france it takes one worker to produce one

Question: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine. In Tunisia it takes two workers to produce one sweater, and three workers to produce one bottle of wine. Who h ...

Question married people occasionally report that they are

Question: Married people occasionally report that they are less happy with their spouses than they expected to be before marriage. What might this have to do with the winner's curse? The response must be typed, single sp ...

Question describe how the world has changed in terms of

Question: Describe how the world has changed in terms of global trade in the past 10 years. Based on the assigned readings, what do you think developed countries such as the United States, Japan, Germany, and England wil ...

Question consider again the new york taxi market where

Question: Consider again the New York taxi market, where demand is given by Q = 10 - .5P, each taxi's cost is C = 980 + 3Q, and ACMIN = $10 at 140 trips per week. a. Suppose that, instead of limiting medallions, the comm ...

Question 1 in january 2009 congress passed a major stimulus

Question: 1. In January 2009, Congress passed a major stimulus bill. The bill increased federal spending over several years; in 2010, stimulus spending was $385 trillion, or about 2 percent of GDP. According to the Offic ...

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 watch the video servant leadership - joe schmitt

Question: Watch the video "Servant Leadership - Joe Schmitt." Discuss why this is a good example of leadership through acts of service in terms of the way the actions of the leader demonstrate integrity and personal char ...

Question you are responsible for two outside reading

Question: You are responsible for two outside reading reports due on the dates listed. Only hard copy forms of the assignment will be accepted, no email forms. Please note the article you write about should be from a cur ...

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 Microeconomics Expert