Question 15 A firm sells mid-range snowboards and estimates its demand curve to be Q =...

Question 15

A firm sells mid-range snowboards and estimates its demand curve to be Q = 14,200 – 31(P). Variable costs are $268. At what price does the firm's total contribution margin equal zero?

Question 16

The Pampered Pooch sells high-end pet furniture, specializing in small breed dogs. The most popular item is the memory foam dog bed, with the following demand curve: Q = 20,400 – 211(P). While expensive, the bed comes with a washable cover and free shipping. Variable costs run at $47.

At what quantity sold will total contribution margin be maximized? Round your answer to the nearest dog bed.

Solutions

Expert Solution

Answer is as follows:

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

1 - A firm sells mid-range snowboards and estimates its demand curve to be Q =...

1 - A firm sells mid-range snowboards and estimates its demand curve to be Q = 15,700 – 17(P). Variable costs are $265. At what price does marginal revenue equal 0? Round your answer to the nearest dollar. 2 - A firm sells mid-range snowboards and estimates its demand curve to be Q = 12,700 – 32(P). Variable costs are $240. At what price does the firm's total contribution margin equal zero?

Suppose that a firm estimates that the demand curve for its product is Q= 120,000 -...

Suppose that a firm estimates that the demand curve for its product is Q= 120,000 - 10,000P. Suppose that the firm has fixed costs of $12,000 and variable costs per unit (AVC) is $1.50. Write an equation for total profits in terms of Q. At what level of output (Q) are total profits maximized? What price will be charged? What are total profits at this output level? Check your answers in part e) by equating marginal revenue and marginal cost functions and solving for...

Question : A monopoly market structure firm is facing the following demand curve Q = 1800...

Question : A monopoly market structure firm is facing the following demand curve Q = 1800 - 25P. Its short-run total cost is given by :100+7Q+0.025Q2. Find the following for this firm: a. His profit maximizing quantity, price and TR? b. If this firm want to incur an average selling cost of Rs 33 per unit will the firm face below, above or just normal profits?

A monopolistically competitive firm faces the inverse demand curve P = 100 – Q, and its...

A monopolistically competitive firm faces the inverse demand curve P = 100 – Q, and its marginal cost is constant at $20. The firm is in long-run equilibrium. a. Graph the firm's demand curve, marginal revenue curve, and marginal cost curve. Also, identify the profitmaximizing price and quantity on your graph. b. What is the value of the firm's fixed costs? c. What is the equation for the firm's ATC curve? d. Add the ATC curve to your graph in...

Question 1 Acquiring a firm that sells a substitute good would make the demand curve for...

Question 1 Acquiring a firm that sells a substitute good would make the demand curve for your original product more inelastic more elastic unchanged None of the above Question 2 You own two different energy drink brands: "Blue Cow" and "600 minute energy". If you reduce the price on "Blue Cow", __________________ sales of "Blue Cow" would increase, without any changes in sales for "600 minute energy". sales of both "Blue Cow" and "600 minute energy" would increase. sales of...

Q The dominant firm in the price leadership theory derives its demand curve by 1. simply...

Q The dominant firm in the price leadership theory derives its demand curve by 1. simply taking the market demand curve as its own. 2. at each price, plotting the difference between the dominant firm's demand curve and the horizontal sum of the MC curves of the fringe firms. 3. at each price, plotting the quantity supplied of the fringe firms. 4. at each price, plotting the difference between the market demand curve and the horizontal sum of the MC...

Consider a monopoly firm facing a demand curve Q = 100 – P. This firm has...

Consider a monopoly firm facing a demand curve Q = 100 – P. This firm has fixed costs =$1000 and constant marginal cost =$20. Total costs are $1000 + $20Q and average costs are $1000/Q + $20. a. What is the firm’s profit maximizing level of output? What price does it charge to sell this amount of output? How much profit does it make? What is consumer surplus at this level of output? Show your work.(8) b. Suppose this firm...

Assume a firm with the following Demand Curve: P = 10,004 – Q Total...

Assume a firm with the following Demand Curve: P = 10,004 – Q Total Cost Curve: TC = 15,000,000 + 4Q + Q2 • What is the Profit-Maximizing Price and Quantity this firm will use? Show work • Is the firm making a profit or a loss? Explain why • Should the firm stay in business or quit immediately? Explain why

A cocoa shipping firm has determined the its U.S demand curve is given by: Q=7,500-3P where...

A cocoa shipping firm has determined the its U.S demand curve is given by: Q=7,500-3P where Q is metric tons of cocoa and P is the price per metric ton. The firm can import cocoa from the Ivory Coast for $1,850 per metric ton. It's shipping cost is $104 per metric ton of cocoa. The company has fixed costs of $2,000. a. Write the inverse demand function and illustrate with a simple diagram. b. Write the revenue function. At what...

Ride powder” Is a small firm in Denver, CO that produces snowboards. The demand for their...

Ride powder” Is a small firm in Denver, CO that produces snowboards. The demand for their snowboards is described by the following function: P=250 – Q. Were P is the price in dollars and Q is quantity. Their cost of producing snowboards are described by the following supply curve (marginal private costs): P=10+3Q. The production of each snowboard imposes Marginal External Costs (MEC) on other firms in Denver through worsened/polluted environment: MEC=1Q. 1. What quantity of snowboards will be produced...

Subjects