Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

problem about Finding Optimum price and output levels

You have an exclusive contract with Major League Baseball to manufacture Dodgers baseball jerseys and sell them in two markets: Los Angeles and Brooklyn. You produce all the jerseys in a single factory located in Seattle. Your total cost function associated with producing the baseball jerseys is c(Q)=Q2+400 where q is the total amount of jerseys you produce. The inverse demand function for your jerseys in Los Angeles is PLA(QLA)=60-QLA where qLA is the quantity of jerseys sold in Los Angeles. The inverse demand function in Brooklyn is PB(QB)=40-2QB. Assume there is no transportation costs.

How many baseball jerseys will you sell in Los Angeles and how many in Brooklyn? What will be the price of your jersey in Los Angeles and what will be the price in Brooklyn? What will be your total profits?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M928309

Have any Question? 


Related Questions in Business Economics

Aqua springs makes the following four statements about

Aqua Springs makes the following four statements about bottled spring water. Which statement best describes the? firm's quantity supplied in the bottled water? market? A. We would sell more water if the demand for it wer ...

Distinguish between mobile subscriber isdn number and

Distinguish between mobile subscriber, ISDN number and mobile station roaming?

You explain to your friend haslina who runs a catering

You explain to your friend Haslina, who runs a catering service called "Meals in a Zip," about an economic theory which asserts that consumers will purchase less of a product at higher prices than they will at lower pric ...

Introduction to computingresearch at least three different

Introduction to Computing Research at least three different executive support systems using a web search. Review each, and then answer the following questions: 1. Which ESSs did you review? Include a link to information ...

In a study of salary discrimination in a company data are

In a study of salary discrimination in a company, data are collected on the monthly salary and the characteristics of the employees. A regression model is specified with monthly salary Y as the dependent variable and gen ...

1 what types of firms would normally maximize profits along

1. What types of firms would normally maximize profits along with real-life examples. 2. A producer of ballpoint pens has been purchasing ink from an ink supplier and its considering acquiring the ink supplier. Would the ...

The maybe pay life insurance co is trying to sell you an

The maybe pay life insurance co is trying to sell you an investment policy that will pay yu and your heirs $40,000 per year forever. if the required return on this investment is 5.1 percent, how much will you pay for the ...

The resulting output from the modulation process is known

The resulting output from the modulation process is known as the middle frequency (MF) signal. True or false?

As a financial analyst you are tasked with evaluating a

As a financial analyst, you are tasked with evaluating a capital budgeting project. You were instructed to use the IRR method and you need to determine an appropriate hurdle rate. The risk-free rate is 4% and the expecte ...

Which of the following explains why big business typically

Which of the following explains why big business typically spends more on rent-seeking activities than consumers? A. Lobbying is a public good to consumers. B. Lobbying is a public good to businesses. C. Labor unions in ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate