Scenario 3: You are studying a market for which the kinked-demand curve model applies. The kinked demand curve is as follows: Q = 1200-5P for 0 ≤ Q < 150 Q = 360-P for Q ≥ 150 The marginal cost is given as: MC = Q Refer to Scenario 3. What is the profit-maximizing level of output? O A. 171.43 O B. 120 C. 150 D. All of the above E. None of the above
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- The inverse Demand equation is: P = 1018 - 1.5 Q The marginal cost is given as: MC = 212 + 1.5 Q if the market is served by many competitive firms, the equilibrium Q is and P is f needed, round to two decimals for both Pand Q (P in $/s unit, Q in units/period). a. 268.67: 615.00 O b.282.81 : 676.50 Oc 410.00 : 1421.00 O d. 179.11: 749.33 O e. None of the asnwers offered are accurate.Galaxy Railway is the only firm providing train services to a small town. Suppose there is a discovery of a gold mine near the town leading to a sudden surge in the demand for its services from D1 to D2. PA D1 D2 ÞQ Copy the above diagram to your Standard Answer Sheet; explain how the increase in demand will affect the price and output of Galaxy Railway. а. b. In view of the expensive railway tickets, the Town Government is considering a proposal of providing a lump-sum subsidy to Galaxy Railway. Explain whether this lump-sum subsidy will induce Galaxy Railway to reduce its ticket price.A computer hardware firm sells both laptop computers and printers. Through the magic oft focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Laptop Printer Bundle Customer A Customer B Customer C $750 $1,000 $100 $150 $850 $1,150 $650 Se00 S50 Assume for simplicity the marginal cost of production for laptops and printers is zero. in total? If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profil? Assuming for simplicity that the firm has only one customers of each type, how much does it earm To maximize profit using individual prices, the firm should charge a price for laptops of p=0 and a price for printers of (Enter your responses as whole numbers.) In tum, profit isx=$. (Enter your response as a whole number.) After conducting a costly study, an outside…
- Dari R es for Shipharah Zurbuchen x Math 148 weekend number 2.pdf x Course Home oweekend%20number%202.pdf 2 / 3 100% +| E O 13) Assume that the price, in dollars, of a sound system is given by 1000 + 1000 q² Where q represents the quantity demanded for the product a) Find the Revenue function R(q) and the marginal revenue function R'(q) b) Find an interpret (write a sentence explaining the meaning) of the marginal revenue when demand is 10 systems Suppose the cost of producing q sound systems is given by the equation C (q) = 0.4q² + 160q + 50 c) Find the profit function, P(q) and the marginal profit function P'(q) d) Find and interpret he marginal profit when the demand is 10 systems ar product are given .Assuming you are the managing director of a firm that produces three goods: A, Band C. The price elasticity of demand for A is 1.2, for B it is 1.00 and for C it is 0.75.It is known that he firm is experiencing serious cash flow problems and you have toincrease total revenue as soon as possible. If you were in a position to set the pricesfor these goods, what would be your pricing strategy for each product1. Suppose you are the economic adviser ofa company producing three brands of mobile pnones;Nokia 10, Samsung X and iPhone 7. Suppose further that, your company currently sells 120units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units ofNokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing directorproposes an increase in price of Samsung X from e800 to e1000 per unit for which quantitydemanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e 1200 per unitfor which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 unitsUsing the mid-polint formula. compute the price elasticity of demand for each brand.From your answer in i, what is the type and economic interpretatiom of each brand'sii.value of elasticity.2. Briefly explain any three key features of a Perfect Competitive and a Monopolistic…
- COURSE: MICROECONOMICS - Bertrand's ModelAssume that a market is supplied by 2 companies, whose total costs are: CTi = 100Respective demand of each is: q1 = 120 - 2p1 + p2 and q2 = 120 - 2p2 + p1It is requested to:(a) calculate the firms' profit and reaction function.(b) plot the market equilibrium price and reaction function(d) calculate equilibrium quantity produced by each firm(e) determine profits that both firms will have at equilibrium.The soluation avilible I believe it is wrong so please solve it carefully Carl and Simon are the only sellers of pumpkins at the market, where the total demand function for pumpkins is q =3 ,200−1,600p. The total number of pumpkins sold at the market is q = qC + qS, where qC is the number that Carl sells, qS is the number that Simon sells. The cost of producing pumpkins for each farmer is $.50 per pumpkin; the fixed costs are zero. .a. Find the Cournot equilibrium price and quantities. .b. Find the Bertrand equilibrium price and quantities. . .c. Suppose now that every spring the snow thaws off of Carl’s pumpkin field a week before it thaws off of Simon’s. Therefore, Carl can plant his pumpkins one week earlier than Simon while predicting Simon’s choice based on the previous year information. Simon observes Carl’s choice and chooses how much pumpkin to plant. Find the new equilibrium price and quantities. .d. Compare the quantities and prices in parts a, b, and c. Rank these outcomes…Suppose you are the economic adviser ofa company producing three brands of mobile pnones;Nokia 10, Samsung X and iPhone 7. Suppose further that, your company currently sells 120units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units ofNokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing directorproposes an increase in price of Samsung X from e800 to e1000 per unit for which quantitydemanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e 1200 per unitfor which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 unitsUsing the mid-polint formula. compute the price elasticity of demand for each brand.From your answer in i, what is the type and economic interpretatiom of each brand'sii.value of elasticity.
- A bike designed by an engineering firm has the demand curve Q - 2, 000 – 100P where Pis the price. It will cost $1, 000 to test this type of bike by the R&D department. It is necessary to do this before the bike goes into production. In addition to the testing cost, there is a marginal cost of $4 per bike for every bike produced. What is marginal revenue assurming Q – 100? Select one: O a. 10 O b. 18 O c. None of the above O d. 16 If firm 1 chooses its output level first and then firm 2 responds to this choice, this is called a simultaneous play game. Select one: True O False An equilibrium is when each firm's input level is a best response to the other firm's input level. Select one: OTrue FalseAssume that a computer company operates in a perfectly competitive market producing 5,000computers per day. At this output level, price exceeds this firm's marginal cost. It follows that producing one more computer ( expanding the production) will cause this firm's: O profits to remain unchanged. O profits to increase. O total cost to decrease. O profits to decrease. 21 Ex ttv MacBook Pro ミ7. You are a drug smuggler. Your profit depends on how many bales of marijuana (M) and blocks of cocaine (C) you can smuggle into the country. Specifically, your profit function can be expressed as: T= 720C2C² + 480M - 3M² + MC - 5000 A. Find the unconstrained solution for how much of each kind of drug you should smuggle. Now suppose that you are constrained in your choice by the capacity of the secret compartment in your plane. It can only fit 200 cubic feet of drugs, and each M takes up 2 cubic feet, and each C takes up I cubic foot. B. Construct a math expression for the constraint. C. Construct the Lagrangian function for this problem. D. Find the optimal constrained amounts. Decimals/fractions are fine, if it turns out that way. E. If you could increase the capacity by one unit for $400, should you do it? Explain.
