Question
In: Advanced Math
One of the luxury car manufacturers usually wants to make a limited number of automobiles in...
One of the luxury car manufacturers usually wants to make a limited number of automobiles in a given year and the company’s aim is to expand their profit margins in each car sold. After doing the analysis on the sales of their cars, the company determined the below supply and demand functions of the cars sold:
Supply function: P = 1000 + Q^2
Demand function: P = 21000 – Q^2
a) Calculate the producer, consumer and total surplus at the market equilibrium.
b) If the manufacturer restricts the number of cars manufactured and sold to 800 at the demand price of $15,000, how much is the total producer surplus?
c) A manufacturer wants to maximize the producer surplus and hence determine the quantity (give the whole number) at which this can be possible. Also determine the producer surplus at this quantity.
Solutions
Colby Messinger answered 1 year agoRelated Solutions
Building of its reputation for manufacturing no-thrills, efficient and affordable automobiles, the Indian car manufacturers Indy...
Building of its reputation for manufacturing no-thrills,
efficient and affordable automobiles, the Indian car manufacturers
Indy Car Limited, is ready to launch an international marketing
campaign, specifically targeting low- to- medium income customers
in Asia and Europe. In preparation for the expected demand
increase, a new production facility will be added in the state of
Andhra Pradesh near Hyderabad to complement the already existing
plants in Mumbai and New Delhi. The Company’s CFO, Raja Jain is
planning to raise the...
Tim Smith is shopping for a used luxury car. He has found one priced at $...
Tim Smith is shopping for a used luxury car. He has found one
priced at $ 27000.
The dealer has told Tim that if he can come up with a down
payment of $5 600, the dealer will finance the balance of the
price at a 7% annual rate over 3 years (36 months).
(Hint: Use four decimal places for the monthly interest rate in
all your calculations.)
a. Assuming that Tim accepts the dealer's offer, what will his
monthly...
Major car manufacturers make use of computer simulations to experiment with possible plant layouts. The simulations...
Major car manufacturers make use of computer simulations to
experiment with possible plant layouts. The simulations are
designed to reflect stochastic effects such as different demand
patterns, chance variations in processing times and breakdowns.
Hence the results of running a simulation to calculate shifts’
production rates need to be analysed using appropriate statistical
methods. Often these computer simulations are quite complex with
quite long runtimes, and hence there is an interest in using as few
runs of the simulation as...
Belinda wants to buy a second-hand car and visits a number of car dealers before deciding...
Belinda wants to buy a second-hand car and visits a number of
car dealers before deciding to purchase an as new 1998 Ford Mustang
from American Car Sales. The sales person, Jaxson, tells Belinda
that the car was manufactured in 1998 and had only done 54,000
kms.
Three months later, Belinda has the Mustang serviced with her
local mechanic who was a Mustang enthusiast. He comments on the
fact that the car was in pretty good condition for a 1994...
Belinda wants to buy a second-hand car and visits a number of car dealers before deciding...
Belinda wants to buy a second-hand car and visits a number of
car dealers before deciding to purchase an as new 1998 Ford Mustang
from American Car Sales. The sales person, Jaxson, tells Belinda
that the car was manufactured in 1998 and had only done 54,000
kms.
Three months later, Belinda has the Mustang serviced with her
local mechanic who was a Mustang enthusiast. He comments on the
fact that the car was in pretty good condition for a 1994...
.Belinda wants to buy a second-hand car and visits a number of car dealers before deciding...
.Belinda wants to buy a second-hand car and visits a number of
car dealers before deciding to purchase an as new 1998 Ford Mustang
from American Car Sales. The sales person, Jaxson, tells Belinda
that the car was manufactured in 1998 and had only done 54,000 kms.
Three months later, Belinda has the Mustang serviced with her local
mechanic who was a Mustang enthusiast. He comments on the fact that
the car was in pretty good condition for a 1994...
.Belinda wants to buy a second-hand car and visits a number of car dealers before deciding...
.Belinda wants to buy a second-hand car and visits a number of
car dealers before deciding to purchase an as new 1998 Ford Mustang
from American Car Sales. The sales person, Jaxson, tells Belinda
that the car was manufactured in 1998 and had only done 54,000
kms.
Three months later, Belinda has the Mustang serviced with her
local mechanic who was a Mustang enthusiast. He comments on the
fact that the car was in pretty good condition for a 1994...
German Car Industry The luxury cars industry is one of the most prestigious mass-production industries in...
German Car Industry
The luxury cars industry is one of the most prestigious
mass-production industries in Germany. The country is recognized by
many as the native land of the automobile; in fact in 1901, 900
vehicles a year were already produced. Throughout the century the
sector turned out to be the pillar of the national economy.
Germany's famous premier brands such as Porsche, Audi, Volkswagen,
Mercedes-Benz and BMW are enviable all around the world. We are now
going to tackle...
Tim Smith is shopping for a used luxury car. He has found one priced at $30,000....
Tim Smith is shopping for a used luxury car. He has found one
priced at $30,000. The dealer has told Tim that if he can come up
with a down payment of 5,000, the dealer will finance the balance
of the price at a 6% annual rate over
3years (36 months).
a. Assuming that Tim accepts the dealer's offer, what will
his monthly (end-of-month) payment amount be?
b. Use a financial calculator or spreadsheet to help you
figure out what...
Tim Smith is shopping for a used luxury car. He has found one priced as $40,000....
Tim Smith is shopping for a used luxury car. He has found one
priced as $40,000. The dealer has told Tim that if he can come up
with a down payment of $7,500, the dealer will finance the
balance of the price at a 55% annual rate over 5years (60
months). (Hint: Use four decimal places for the monthly interest
rate in all your calculations.) a. Assuming that Tim accepts the
dealer's offer, what will his monthly (end-of-month) payment
amount...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- function X=extractDWT(x_train,startS,endS,wStep,wRange) % x_train = input signal % startS = from second % endS = end...
- Do you agree that Social Loafing is similar to Theory X. Give an example to support...
- Computing Cost of Goods Sold and Ending Inventory. Bartov Corporation reports the following beginning inventory and...
- SQL FORMAT (11-13 are completed and correct) -- 11. what are the names of all students...
- You have been hired as a capital budgeting analyst by Advent Sports, a sporting goods firm...
- DESCRIBE WHAT HAPPENS WHEN WE BECOME CONSCIOUS OF SOMETHING. WHAT HAS TO HAPPEN FOR CONSCIOUS AWARENESS...
- 3) You are rolling a 12 sided die 8 times. a) What is the size for...
ADVERTISEMENT