The market demand curve is given by p = 100 - Q Two firms, A and B, are competing in the Cournot fashion. Both firms have the constant marginal cost of 70. Suppose firm A receives a new innovation which reduces its marginal cost to c. Find the cutoff value of c which makes this innovation \"drastic\".
Suppose a single-price monopoly’s demand curve is given by P = 20 – 4Q, where P is price and Q is quantity demanded. Marginal revenue is MR = 20 – 8Q. Marginal cost is MC = Q2. How much should this firm produce in order to maximize profit?
Suppose a firm’s inverse demand curve is given by P = 120 - .5Q and its cost equation is C = 420 + 60Q + Q2.a. Find the firm’s optimal quantity, price, and profit (1) By using the profit and marginal profit equations and (2) By setting MR equal to MC. Also provide a graph of MR and MC.b....
Wanting to know if there is a linear relation among wind chill temperature, air temperature (in degrees Fahrenheit), and wind speed (in miles per hour), a researcher collected the following data for various days. (a) Find the least-squares regression equation y? = b0 + b1x1 + b2x2, where x1 is air...
The Laurier Company’s brand has a market share of30%. Suppose that 1,000 consumers of the productare asked in a survey which brand they prefer. What is the probability that more than 32% of the respondents say they prefer the Laurier brand?
Find a recent news report that gives current data about vital statistics or life expectancy. Summarize the report and the statistics, and discuss any personal or social implications of the new data.
Tip Top Cleaning does activities in December normally. The transactions that took place in December are as follows: Dec 1 Purchased a cash safe worth RM 2800 for office and employee use. 2 Receive interest amounting to RM 3,000 by check 3 Deposit 2000 cash into the bank. 4 Pay incoming freight...
The Jones, Jones, Smith, and Rodman commodities trading firm knows the prices at which it will be able to buy and sell a certain commodity during the next 4 months. The buying price and selling price (pi) for each of the given months (i) are as follows: The firms warehouse has a maximum capacity of...
The demand function for a certain commodity is p = 5 – x/10. Find the consumer surplus when the sales level is 30. Illustrate by drawing the demand curve and identifying the consumer surplus as an area.
The supply function ps(x) for a commodity give the relation between the selling price and the number of units that manufacturers will produce at that price. For a higher price, manufacturers will produce more units, so ps are an increasing function of x. Let X is the amount of the commodity...
The force F acts at the end A of the pipe assembly. Determine the magnitudes of the components F1 and F2 which acts along the axis of AB and perpendicular toit.