Question: Consider a firm, manufacturing good x, who is a price maker. The firm sees the market demand for good x as: D(q) = 94

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) = 1.5q + 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.

Step by Step Solution

★★★★★

3.52 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below The answer is option a The firm will ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related 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 Î¼s = 0.60; the coefficient of kinetic friction is Î¼k...

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...

1. The private cost of production includes the amount a firm pays for _______, _______, and_______. 2. The external cost of production is the cost incurred by _______. 3. The social cost of...

Rainbow Glass Company manufactures decorative glass products. The firm employs a process-costing system for its manufacturing operations. All direct materials are added at the beginning of the...

High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which predetermined overhead rates are used...

Components of break-even graph .:. Required Match the numbers shown in the graph with the following items. a. Fixed cost line b. Total cost line c. Break-e v en point d. Area of profit e. Revenue...

Blotski Company makes household plastic bags in three different sizes: Snack, Sandwich, and Storage. The estimated direct materials and direct labor costs are as follows. Blotski allocates two major...

1. The Employment and Wage Effects of a Luxury Boat Tax. Suppose the luxury boat industry initially employs 1,000 workers and produces 100 boats per month. Suppose a tax on luxury boats increases the...

Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the companys normal volume of 6,000 units per month are shown in the following table....

What does NFPA 1 2021 say about when a conflict occurs between a general requirement and a specific requirement

Ami stops to fill her car with gas at Local Gas Station. Unbeknownst to Ami, Amari, one of the employees at the store, has placed a device on the pump that allows her to steal the credit card number....

Design a custom date function that showcases your coding abilities and originality. The function should take 3 inputs: the output of the Get-Date cmdlet, and two additional parameters. It must...

5. Find the tension in the cable and the force exerted by the hinge on the beam. The beam has mass 50.0 kg and length 7.00m. (754N; 492N at 10.2 below hzntl) 80.0 30.0 7.00 m 2.00 m

The ethical principle of applies to the security of payroll records. Multiple Choice Professional Competence and Due Care Integrity Confidentiality Objectivity and Independence

QS 1-7 (Algo) Applying the accounting equation LO A1 a. Total assets of Charter Company equal $730,000 and its equity is $435,000. What is the amount of its liabilities? b. Total assets of Martin...

Requirement 1. Prepare Watercooler's sales budget for April and May 2018. Round all amounts to the nearest dollar. Watercooler Office Supply Sales Budget April and May, 2018 April May 81,600 $ 80,000...

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) =...

What is loading?

One approach that can be effective in reducing the impact on production bottlenecks is to use smaller transfer lot sizes as in tire Theory of Constraints. Explain how small transfer lot sizes can...

The fol1owing table contains information concerning four jobs that are waiting for processing at a machine. a. Sequence the jobs using priority rules (I) SPT, and (2) EDD. b. For each of the priority...