Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Robert’s New Way Vacuum Cleaner Company is a recently started small business which manufactures vacuum cleaners and belongs to the monopolistically competitive market. Its demand curve for product is expressed as Q = 5000 – 25P where Q is number of vacuum cleaners per year and P is in dollars. Cost estimation processes have determined that the firm’s cost function is represented by TC = 1500 + 20Q + 0.02Q2.

Required:

Demonstrate all of your computations and processes. describe your answer for each problem in complete sentences, whenever it is essential.

1. What are the profit-maximizing price and output levels? Describe them and compute algebraically for equilibrium P (price) and Q (output). Then, plot the MC (marginal cost), D (demand), and MR (marginal revenue) curves graphically and demonstrate the equilibrium point.

2. How much economic profit do you expect that Robert’s company will make in first year?

3. Do you expect this economic profit level to continue in following years? Why or why not?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914069

Have any Question? 


Related Questions in Macroeconomics

How would a keynesian economist use fiscal policy to fix a

How would a Keynesian economist use fiscal policy to fix a recession? How would a Keynesian economist use fiscal policy to fix an inflation?

Suppose johns utility function is u ln2c where c is the

Suppose John's utility function is U = ln(2C) where C is the amount of consumption John has in any given period. John's income is $100,000 per year and there is a 3% chance that he will be involved in a catastrophic acci ...

Read the article and in 450-700 words address these

Read the article, and in 450-700 words address these prompts: • Summarize the view of American critics of global firms that import products purchased from developing country factories that have bad working conditions and ...

According to the immigrant assimilation related studies the

According to the immigrant assimilation related studies, the typical earnings profiles of immigrants start lower and literature, born. In the space are steeper than the earnings profiles of the native for years below, u ...

Suppose there are two types of consumers type a and type b

Suppose there are two types of consumers: Type A and Type B. The demands for a monopolist's product for each type of consumers are given by: Type A : Q=100-4P Type B: Q=60-P Assume that marginal cost of production is con ...

Revise your week 3 economic analysis using the feedback

Revise your Week 3 economic analysis using the feedback provided by your facilitator to evaluate the challenges of expanding your company's production to a foreign market. This will require you to revise previously recom ...

Question 1 explain why real gdp might be an unreliable

Question 1: Explain why real GDP might be an unreliable indicator of the standard of living. Question 2: Why does unemployment arise and what makes some unemployment unavoidable? Question 3: Consider the following statem ...

Determine whether the following statement is true or false

Determine whether the following statement is TRUE or FALSE then EXPLAIN why. 1. In principle the government could increase the money supply or government expenditures to try to offset rising unemployment. 2. If the CPI r ...

Suppose the european union eu is investigating a proposed

Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists' definition of the relevant market, the two firms proposing to m ...

1 which countries consume the most dung and how do the

1. Which countries consume the most dung and how do the energy statistics in the BP Statistical Review account for it? 2. Explain why consumption of a particular energy source typically ceases long before the stock of su ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen