Question 5: Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated...

Question 5:

Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated to be $25.78. Calculate total contribution margin at the optimal price. Round your answer to the nearest dollar.

Question 6

Assume the following demand equation: Q = 797 - 19(P). Variable costs = $6. Calculate marginal revenue for the 251st unit. Round your final answer to the nearest dollar.

(When you are calculating the two prices, do not round to less than 2 decimal places. In other words, you are safe to round each price to the nearest penny.)

Expert Solution

Answer is as follows:

jeff jeffy answered 2 years ago

Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated to be $25.10

Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated to be $25.10. Calculate total contribution margin at the optimal price. Round your answer to the nearest dollar.5 - Assume the following demand equation: Q = 729 - 21(P). Variable costs = $6. Calculate marginal revenue for the 251st unit. Round your final answer to the nearest dollar.(When you are calculating the two prices, do not round to less than 2 decimal places. In other words,...

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 monopolist faces a demand curve of P = 120 – Q, and has costs of...

A monopolist faces a demand curve of P = 120 – Q, and has costs of C = 50 + 20Q. The monopolist sets a uniform price to maximize profits. Group of answer choices a) All of the answers are correct. b)The profit-maximizing price is 70. c)Deadweight loss is 1250. d) Producer surplus is 2500.

Assume a consumer whose demand curve is given by p = 10 – q. There is...

Assume a consumer whose demand curve is given by p = 10 – q. There is an incumbent monopolist whose marginal cost is 2. What are the monopoly price, monopoly profit, and consumer surplus? Now suppose that there is a potential entrant whose marginal cost is zero. If there is entry, the incumbent firm and the entrant compete in prices for the homogenous product. If entry, what would be the market price and what would be consumer surplus? Can the...

For a price-searcher, assume the demand curve is Q = 10 - P. a.) Construct a...

For a price-searcher, assume the demand curve is Q = 10 - P. a.) Construct a four-column table of P and Q with P ranging from 10 to 0. Calculate TR and MR and add them to your table. b.) Graph D and MR. (Plot points—with $ on the vertical axis and Q on the horizontal axis. c.) Why is P > MR (after the first unit)—or in other words, what is the good news and bad news for the...

Assume that a monopolist faces a demand curve given by: Q = 100 – P Also...

Assume that a monopolist faces a demand curve given by: Q = 100 – P Also assume that marginal costs are such that MC = 2Q. Calculate and graph the following: Find the profit maximizing price and output in this market under autarky. Now assume that the world price under free trade is $20 per unit. If the monopolist is a single price monopolist then find the profit maximizing output for this firm. Also find the amount imported under free...

A monopoly faces the following demand function: P=1200-Q. Variable production costs are VC(Q)=2Q^2.

A monopoly faces the following demand function: P=1200-Q. Variable production costs are VC(Q)=2Q^2. The firm also pays $50000 in costs that do not depend on production (even if q=0).What are the sunk costs, the fixed (but not sunk) costs, and the variable costs for this firm?Find the profit maximizing quantity and price, as well as profits.Repeat question 1 above if the costs of the firm are now 0 if it does not produce, but 2Q^2+150000 if it produces any positive...

Suppose that the market demand curve is given by q=10-p and that production costs are zero...

Suppose that the market demand curve is given by q=10-p and that production costs are zero for each of four oligopolists. (a) Determine the level of output for each of the four oligopolists according to the Cournot model. (b) What general rule can you deduce from your answer to part (a)?

if the demand curve is Q(p)=p*, what is the elasticity of demand? if marginal cost is...

if the demand curve is Q(p)=p*, what is the elasticity of demand? if marginal cost is 1$ and *= -2, what is the profit maximizing price?

5. Assume that we have estimated a demand curve for a particular brand of car. Using...

5. Assume that we have estimated a demand curve for a particular brand of car. Using a diagram, show the potential impacts of the following: (a) a rise in the price of petrol; (b) a rise in the price of the car; (c) a fall in the price of the car; (d) a general rise in incomes; (e) the invention of a water-powered car; (f) the introduction of a new model by a competing car manufacturer. (g) an advertising campaign...

Question