Consider a firm, manufacturing good x, who is a price maker. The firm sees the market...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a firm, manufacturing good x, who is a price maker. The firm sees the market demand for good x as: D(q) = 94 - 2q The firm's total cost of production is structured as: C(q) = 1.5q² + 45q + 100 The market equilibrium price is $74.4 a unit of good x and the equilibrium quantity is 9.8 units (in millions). How many units will the firm supply to the market for the purpose of maximizing its profits? Also, what will be the price the firm will charge to consumers? (a) The firm will supply 7 units (in millions) and charge consumers $80 a unit. (b) The firm will supply 343 units (in millions) and charge consumers $74.4 a unit. (c) The firm will supply 5 units (in millions) and charge consumers $84 a unit. (d) None of the above. Consider a firm, manufacturing good x, who is a price maker. The firm sees the market demand for good x as: D(q) = 94 - 2q The firm's total cost of production is structured as: C(q) = 1.5q² + 45q + 100 The market equilibrium price is $74.4 a unit of good x and the equilibrium quantity is 9.8 units (in millions). How many units will the firm supply to the market for the purpose of maximizing its profits? Also, what will be the price the firm will charge to consumers? (a) The firm will supply 7 units (in millions) and charge consumers $80 a unit. (b) The firm will supply 343 units (in millions) and charge consumers $74.4 a unit. (c) The firm will supply 5 units (in millions) and charge consumers $84 a unit. (d) None of the above.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The answer is option a The firm will ... View the full answer
Related Book For
Social Media Marketing A Strategic Approach
ISBN: 978-0538480871
1st edition
Authors: Melissa Barker, Donald I. Barker, Nicholas F. Bormann, Krista E. Neher
Posted Date:
Students also viewed these accounting questions
-
N balls labeled 1 through N are placed in Box 1 while a Box 2 is initially empty. At each time instant, one of the N balls is chosen (with equally probability) and moved to the other box. Let X [k]...
-
A physics textbook weighing 22 N rests on a desk. The coefficient of static friction between the book and the desk is μs = 0.60; the coefficient of kinetic friction is μk...
-
N sources of current with different emf's are connected as shown in Fig. 3.40. The emf's of the sources are proportional to their internal resistances, i.e. ε = aR, where a is an assigned...
-
Its estimated that the average corporate user sends and receives some 112 e-mails daily.78 Thats about 14 e-mails per hour, and even if half of those dont require a lot of time and concentration,...
-
When making a decision about the dollar amount in an account balance based on a sample, the audit team considers the risk of incorrect acceptance to be more serious than the risk of incorrect...
-
When 2-methyl-2, 5-pentanediol is treated with sulfuric acid, dehydration occurs and 2, 2-dimethyltetrahydrofuran is formed. Suggest a mechanism for this reaction. Which of the two oxygen atoms is...
-
Management is considering three alternatives to satisfy an urgent need. Each of the alternatives will completely satisfy the need, so no combinations have to be considered. The first costs, operating...
-
Mary Coleman opened Mary's Maids Cleaning Service on July 1, 2014. During July, the company completed the following transactions. July 1 Stockholders invested $15,000 cash in the business in exchange...
-
distributed database management system, are there any concerns or issues managing distributed database management systems, and if so, why?
-
Seawater with a concentration of 8000 g/m3 is pumped into a well-mixed tank at a rate of 0.6 m3/hr. Because of faulty design work, water is evaporating from the tank at a rate of 0.025 m3/hr. The...
-
Motyl introduces his Rules numbered 3 through 9 Choose one of these rules and expand upon it by describing additional examples or ways in which following the rule will improve decision making All of...
-
Suppose the length of a chapter of a Harry Potter book, inwords, is approximately normally distributed. Chapters are known tohave an average length of 4580 words, with a standard deviation of120...
-
FYI: (income/prices)*100 = real income economy A B GDP ($ million) 90000 120000 145000 160000 Prices 100 120 100 109 Population (mil) 3 3.2 5 6.4 1)Which economy grew? (A,B, both, neither). Which...
-
he Middle Wonderland language consisted of only four letters: A, B, C, and E. A word in this language is an arbitrary sequence of no more than five letters that contains at least one vowel (A or E)....
-
11. Flying Express Airlines flight 82 from Dallas to Miami is on time 859f of the time, according to d Flying Express Airlines. Suppose sixty-five flights are randomly selected a. What does the...
-
1) What is the percentage of typists who type 60 wpm or fastergiven that typing speed is normally distributed with a mean of 45wpm and a standard deviation of 12 wpm? Remember, probabiitiesshould be...
-
Comment briefly on the data presented in Figure 9 of male (n=4) and female (n=3) EXSC 415 students from Fall 2022 measured by Styku Infrared, BODPOD/Siri, HSW/Siri, InBody BEI, IGIRTH, Sloan/Siri,...
-
Calculate I, , and a for a 0.0175 m solution of Na 3 PO 4 at 298 K. Assume complete dissociation. How confident are you that your calculated results will agree with experimental results?
-
A firm can sell its product at a price of $150 in a perfectly competitive market. Below is an incomplete table of a firm's various costs of producing up to 6 units of output. Fill in the remaining...
-
The global propylene industry is perfectly competitive, and each producer has the long-run marginal cost function MC(Q) = 40 12Q + Q2. The corresponding long-run average cost function is AC(Q) = 40 ...
-
The long-run total cost function for producers of mineral water is TC(Q) = cQ, where Q is the output of an individual firm expressed as thousands of liters per year. The market demand curve is D(P) =...
-
A probability experiment consists of rolling a single fair die. (a) Identify the outcomes of the probability experiment. (b) Determine the sample space. (c) Define the event E = roll an even number....
-
A pair of fair dice is rolled. Fair die are die where each outcome is equally likely. (a) Compute the probability of rolling a seven. (b) Compute the probability of rolling snake eyes; that is,...
-
Our number system consists of the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9. Because we do not write numbers such as 12 as 012, the first significant digit in any number must be 1, 2, 3, 4, 5, 6, 7, 8,...
Study smarter with the SolutionInn App