A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 - 5,000P + 25M Qs = 240,000 + 5,000P 2,000P1 where P is price, M is income, and P1 is Average variable cost is estimated to be AVC= 14 -0.008Q + 0.000002Q2 to be $10,000 instead. What will the firm's profit (loss) be? e price of a key input. The forecasts for the next year are M = $15,000 and P1 = $20. Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted zero $2,500 -$3,550 -$2,860 -$6,000 A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 - 5,000P + 25M Qs = 240,000 + 5,000P 2,000P1 where P is price, M is income, and P1 is Average variable cost is estimated to be AVC= 14 -0.008Q + 0.000002Q2 to be $10,000 instead. What will the firm's profit (loss) be? e price of a key input. The forecasts for the next year are M = $15,000 and P1 = $20. Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted zero $2,500 -$3,550 -$2,860 -$6,000
Expert Answer:
Answer rating: 100% (QA)
The profit loss will be 2860 The demand equation is Qd 25000 5000P 25M Substituting in the given val... View the full answer
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson , John D. Stowe, Abby Cohen
Posted Date:
Students also viewed these economics questions
-
5. Merger analysis - Free cash flow to equity (FCFE) approach Consider the following acquisition data regarding Wellington Industries and Orator Telecom Inc. : Wellington Industries is considering an...
-
The free cash flow to the firm is closest to A. $23,031,000. B. $25,441,000. C. $36,091,000. Alan Chin, the chief executive officer of Thunder Corporation, has asked his chief financial officer,...
-
What is the difference between free cash flow to equity and net income?
-
What is your perspective on changes in cultural ideals for the female body from that of Marilyn Monroe in the 1950s to top models today?
-
What physics principle underlies these three observations? When passing an oncoming truck on the highway, your car tends to sway toward the truck. The canvas roof of a convertible automobile bulges...
-
The velocity of the water in the pipe shown in Fig. P4.29 is given by \(V_{1}=0.50 t \mathrm{~m} / \mathrm{s}\) and \(V_{2}=1.0 t \mathrm{~m} / \mathrm{s}\), where \(t\) is in seconds. Determine the...
-
Search through your local newspaper (or any other publication) and find the results of a survey or interview about any topic. Summarize the results and do the best job you can describing how the...
-
Laura Drake wishes to estimate the value of an asset expected to provide cash inflows of $3,000 per year at the end of years 1 through 4 and $15,000 at the end of year 5. Her research indicates that...
-
Please, draft a risk-shifting clausea representation given by the Seller of business assets about pending or threatened litigation--from two different perspectives: First, taking on the role of the...
-
Morton Corp., a calendar-year C corporation, started business in Year 1. In Year 5, the company sold its office building and office furniture, and purchased a new office building and office...
-
A company is contemplating an investment in a new project. The company has already spent 8 0 k on a marketing study to evaluate this project. According to the study, the new online division will...
-
What is different about hedging long-term transaction exposures?
-
Why do firms often follow a sequential strategy in entering foreign markets?
-
Compare the pros and cons of using forwards and currency options versus forward protection agreements for hedging transaction exposures.
-
Identify the key motivations for foreign direct investment.
-
What is the difference between hedging with forward contracts and with money market hedges? When would you expect their respective costs to be somewhat different?
-
What is the appropriate computation of the percentage change? 2. Based on the results of the horizontal analysis, which line item on the income stateme highest percentage during the year? 3. What is...
-
Three forces with magnitudes of 70pounds, 40 pounds, and 60 pounds act on an object at angles of 30, 45, and 135, respectively, with the positive x-axis. Find the direction and magnitude of the...
-
Shunichi Kobayashi is valuing United Parcel Service (NYSE: UPS). Kobayashi has made the following assumptions: Book value per share is estimated at $ 9.62 on 31 December 2007. EPS will be 22 percent...
-
The estimated betas for AOL Time Warner (NYSE: AOL), J.P. Morgan Chase & Company (NYSE: JPM), and The Boeing Company (NYSE: BA) are 2.50, 1.50, and 0.80, respectively. The risk - free rate of return...
-
In the first approach, what proportion of the total value of the stock is represented by the value of the second stage? A. 0.10 B. 0.52 C. 0.90 Assorted Fund, a UK - based globally diversified equity...
-
What is Raoult's law? How do you explain the deviation from Raoult's law? What are positive and negative deviation of a solution from ideality?
-
What do you mean by maxcondentherm and maxcondenbar? How do they differ from each other?
-
What is an azeotrope? How do you categorize an azeotrope? Discuss the minimum boiling azeotrope with the help of phase diagram for a particular system.
Study smarter with the SolutionInn App