1. You are given the following data for your firm, which sells a patented super-absorbent cleaning...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. You are given the following data for your firm, which sells a patented super-absorbent cleaning towel for use in large retail complexes (called "One Wring to Rule the Mall" Ⓒ). QP TC 0 $215 $2,700.00 10 $208 $4,062.50 20 $201 $5,180.00 30 $194 $6,157.50 40 $187 $7,100.00 50 $180 $8,112.50 60 $173 $9,300.00 70 $166 $10,767.50 80 $159 $12,620.00 90 $152 $14,962.50 100 $145 $17,900.00 a. b. Determine equations for P-f(Q), MR-f(Q), ATC-f(Q. Q), AVC-f(Q, Q²), MC-f(Q, Q²). Recall that your marginal equations should be derivatives of your totals! Determine the profit-maximizing price and quantity. (Since MC is in terms of Q², solving with calculus and algebra can be messy unless you know the quadratic formula. Your table should give an exact answer.) C. How much total profit would your firm earn if you set P and Q according to part b? d. Describe the competitiveness of the market by calculating the Lerner index. 1. You are given the following data for your firm, which sells a patented super-absorbent cleaning towel for use in large retail complexes (called "One Wring to Rule the Mall" Ⓒ). QP TC 0 $215 $2,700.00 10 $208 $4,062.50 20 $201 $5,180.00 30 $194 $6,157.50 40 $187 $7,100.00 50 $180 $8,112.50 60 $173 $9,300.00 70 $166 $10,767.50 80 $159 $12,620.00 90 $152 $14,962.50 100 $145 $17,900.00 a. b. Determine equations for P-f(Q), MR-f(Q), ATC-f(Q. Q), AVC-f(Q, Q²), MC-f(Q, Q²). Recall that your marginal equations should be derivatives of your totals! Determine the profit-maximizing price and quantity. (Since MC is in terms of Q², solving with calculus and algebra can be messy unless you know the quadratic formula. Your table should give an exact answer.) C. How much total profit would your firm earn if you set P and Q according to part b? d. Describe the competitiveness of the market by calculating the Lerner index.
Expert Answer:
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date:
Students also viewed these economics questions
-
A bookkeeper isnt working within the GAAP of accounting and wants to know the possible consequences??
-
You are given the following data for a linear programming problem where the objective is to minimize the cost of conducting two nonnegative activities so as to achieve three benefits that do not fall...
-
The MLC Corporation produces electronic microwave ovens and uses a perpetual inventory system. Its job costing records yield the following information. Job No. 1 m 2 3 4 *5 6 7 Date Finished Sold...
-
Hammerstone Consulting provides risk management services to individuals and to corporate clients. The company closes its temporary accounts once each year on December 31. The company recently issued...
-
The seasonal indexes for a convention centers bookings are 83, 120, 112, and 85 for quarters 1 4, respectively. What percentage of the centers annual bookings tend to occur during the second quarter?
-
Charged particles orbit magnetic field lines in the space above Mars just as they do in the space above earth, but Mars's magnetic field is much weaker so the period of an orbit is much longer. One...
-
Loss Contingencies On February 1, 2011, one of the huge storage tanks of Viking Manufacturing Company exploded. Windows in houses and other buildings within a one-mile radius of the explosion were...
-
International banks provide various services to its clients. The types of services provided by international banks is what differentiates it from a domestic bank. Understanding these banks and the...
-
The Ploughman family owns and operates a 640-acre farm that has been in the family for several generations. The Ploughmans always have had to work hard to make a decent living from the farm and have...
-
What is the present value of 6 receipts of $3,900 each, received at the beginning of each period, discounted at 9% compounded interest? (Round factor values to 5 decimal places, eg 1.25124 and final...
-
You bought a bond five years ago for $829 per bond. The bond is now selling for $780. It also paid $60 in interest per year, which you reinvested in the bond. Calculate the realized rate of return...
-
need help making Junit tests for my code. he code i made makes a singly linked list, you can add to it, delete an item, print out the items in the list, prints the amount of nodes in list, Return a...
-
An 8 year, 10 percent semi-annual coupon bond, with a par value of $1,000, may be called in 3 years at a call price of $1,040. The bond sells at $1,060. What is the bonds capital gain or loss yield?
-
Why is goal setting important in the financial planning process? Responses To identify the influence of marketing strategies To identify the influence of marketing strategies To establish spending...
-
You have read the article "Don't Give up on the Lecture" by Abigail Walthausen and you appreciate her position on lecture. Write a letter to Ontario Minister of Education, Stephen Lecce, asking him...
-
22. Suppose many students take a 10-question quiz, and the mean turns out to be 7.22 answers correct. Suppose the standard deviation turns out to be 0.722. What is the coefficient of variation? (a)...
-
Give codons for the following amino acids: (a) Th (b) Asp (c) Thr
-
Consider the following problem. Maximize Z(θ) = (10 θ)x1 + (12 + θ) x2 + (7 + 2θ)x3, Subject to and x1 ¥ 0, x2 ¥ 0, x3 ¥ 0. 212 2x3 s...
-
Maureen Laird is the chief financial officer for the Alva Electric Co., a major public utility in the midwest. The company has scheduled the construction of new hydroelectric plants 5, 10, and 20...
-
Follow the instructions of Prob. 25.4-1 when using the following network. Note that component 3 flows in both directions. (a) Find all the minimal paths and cuts. (b) Compute the exact system...
-
From the following trial balance of G. Foot after his first year's trading, you are required to draw up a statement of profit or loss for the year ending 30 June 2016. A statement of financial...
-
At the beginning of the financial year on 1 April 2017, a company had a balance on plant account of 372,000 and on provision for depreciation of plant account of 205,400. The company's policy is to...
-
(a) Distinguish between capital and revenue expenditure. (b) Drake Ltd took delivery of a computer network on 1 July 2016, the beginning of its financial year. The list price of the equipment was...
Study smarter with the SolutionInn App