.. Consider the following demand and cost information for a monopoly. Find profit-maximizing price and quantity....
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.. Consider the following demand and cost information for a monopoly. Find profit-maximizing price and quantity. Finally, find the maximal profit. (You'll need to find the firm's TR, MR, and MC for each level of quantity.) Quantity 0 1 2 3 4 Price $30 $25 $20 $15 $10 Total Cost $3 $7 $12 $18 $25 Your chief economist estimates the log-log demand curve Q=23-0.7*In(P) +0.5*In(A), where P is the price of your product and A is the dollar amount spent on advertising. You recall your economics class from Winthrop and how coefficients of a log-log regression represent elasticities: 0.7 is the price elasticity of demand (PED), and 0.5 is the advertising elasticity of demand (AED). If your firm's total revenue is $100,000, using all this information, find how much money you should set aside for advertising purposes for your product. What percentage of your total revenues is that amount? s/Q 212 136 120 110 104 96 60 700 810 884 MR MC ATC 976 1,000 Q/t Observe the graphical representation of the monopoly firm above. Please find this firm's TR. TC and profit at the firm's optimal output level. .. Consider the following demand and cost information for a monopoly. Find profit-maximizing price and quantity. Finally, find the maximal profit. (You'll need to find the firm's TR, MR, and MC for each level of quantity.) Quantity 0 1 2 3 4 Price $30 $25 $20 $15 $10 Total Cost $3 $7 $12 $18 $25 Your chief economist estimates the log-log demand curve Q=23-0.7*In(P) +0.5*In(A), where P is the price of your product and A is the dollar amount spent on advertising. You recall your economics class from Winthrop and how coefficients of a log-log regression represent elasticities: 0.7 is the price elasticity of demand (PED), and 0.5 is the advertising elasticity of demand (AED). If your firm's total revenue is $100,000, using all this information, find how much money you should set aside for advertising purposes for your product. What percentage of your total revenues is that amount? s/Q 212 136 120 110 104 96 60 700 810 884 MR MC ATC 976 1,000 Q/t Observe the graphical representation of the monopoly firm above. Please find this firm's TR. TC and profit at the firm's optimal output level.
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Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
Posted Date:
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