q18. select all that apply

Which of the following are characteristics of resources with inelastic demand?

1. a) A fisheries firm is considering a proposed cooling facility project with an initial cost of $390,000 and projected revenue (in thousands of $) of successively 100, 200, and 150 in the next 3 years. Show whether the firm should go ahead with the project if the discount rate is 5%. Would you recommend a different decision if the discount rate is 10%?

b) A proposed Aquaculture project cost $870,000 and it’s expected to generate revenue (in thousand $) in the next 4 years of 230, 410, 390, 170. At a discount rate of 7%, is the project worthwhile? What is the Internal Rate of Return of the investment project?

Renee operates a proprietorship selling collectibles over the web, and last year she purchased a building for $24 million for her business. This year, Renee’s proprietorship reported revenue of $85 million and incurred total expenses of $78.1 million. Her expenses included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on the building mortgage, and $12.7 million of depreciation.

c. Suppose that Renee’s revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that Renee can deduct this year?

Suppose a company's revenue function is given by R(q)=−q^3+360q^2 and its cost function is given by C(q)=300+19q where q is hundreds of units sold/produced, while R(q) and C(q) are in total dollars of revenue and cost, respectively.

A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.)

MP(q)=

B) How many items (in hundreds) need to be sold to maximize profits? (Round your answer to two decimal places.)

Answer: hundred units must be sold.

The owner of a luxury motor yacht that sails among the 4000 Greek islands charges $688/person/day if exactly 20 people sign up for the cruise. However, if more than 20 people sign up (up to the maximum capacity of 90) for the cruise, then every fare is reduced by $8 for each additional passenger.

a. Assuming at least 20 people sign up for the cruise, determine how many passengers will result in the maximum revenue for the owner of the yacht.

b. What is the maximum revenue?

c. What would be the fare per passenger in this case? (Round your answer to the nearest dollar.)

Suppose a producer in the (perfectly competitive) market for golf balls has the following total cost
and marginal cost functions, and that market price is $10.
T C = 50 + 0.1q
2
MC = 0.2q

(a) [5 pts] What is the firm’s fixed cost?

(b) [5 pts] Write the equation for the firm’s average total costs.

(c) [5 pts] What is the firm’s marginal revenue?

(d) [15 pts] Graph the market and the firm (making sure to illustrate marginal cost, marginal
revenue, average total cost and average variable cost). Should the firm continue to produce in the short run?

A monopolistic firm operates in two separate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows:

     Market A p = 15 - Q; Market B p = 11 - Q

The company estimates its total cost function to be TC = 4Q. Calculate the following:

1. quantity, total revenue, and profit when the company maximizes its profit and charges the same price in both markets
2. quantity, total revenue, and profit when the company charges different prices in each market and maximizes its total profit

Scenario 14-4 The information below applies to a competitive firm that sells its output for $40 per unit. • When the firm produces and sells 150 units of output, its average total cost is $24.50. • When the firm produces and sells 151 units of output, its average total cost is $24.55. Refer to Scenario 14-4. Let Q represent the quantity of output. Which of the following magnitudes has the same value at Q = 150 and at Q = 151?

The monthly sales of Stewart Electronics' new sound system are given by q(t) = 2000t - 100t² units per month, t months after its introduction. The price Stewart charges is p(t) = 1000 - t² dollars per sound system, t months after introduction.

a. Find the rate of change of monthly sales after 6 months.

b. Find the rate of change of monthly price after 6 months.

c. Find the equation of the rate of change of the monthly revenue.

d. Find the rate of change of the monthly revenue after 6 months.