Suppose the inverse market demand is given by P-500-5Q. If the incumbent continues to produce 25 units of output, which of the following equations best summarizes the potential entrant's residual demand curve? Multiple Choice O P=375-50. P-375-2.50. P-350-2.50. P-350-50.
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- The Vista TV Cable Co. currently has 100,000 subscribers who are each paying a monthly rate of $40. A survey reveals that there will be 1000 more subscribers for each $0.25 decrease in the rate. At what rate will maximum revenue be obtained, and how many subscribers will there be at this rate?Suppose the demand for Apples is given by QA = 100 -4 PA and the current market price is 11. What is the compensating variation associated with a loss of access to the apple market at the initial price of 117 Assume demand remains constant What is the compensating variation associated with the increase in price from 11 to 227 Assume demand remains constant.the demand for boneless chicken breast, in dollars per pound, is given by q=-0.7p+5, where p represents the price per pound and q represents the average number of pounds purchased per week per customer. Determine the price at which the demand for boneless chicken breast is unit elastc.
- A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150 - 0.02 x Demand for an annual printing of this particular product. The fixed costs per year (ie., per printing) = $46,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 3,000 units per year. The maximum profit that can be achieved is $. (Round to the nearest dollar.) The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.) Enter your answer in each of the answer boxes.Demand for Corn Flakes is: P = 10 - Q. Supply of Kellogg's Corn Flakes is: P = 2 + Q. Now a %3D generic company enters the market, selling generic Corn Flakes for $3. Assume consumers are indifferent between generic and Kellogg's Corn Flakes. When the generic corn flakes enter the market, Kellogg's will sell how many less boxes of their own cereal? Enter as an absolute value (NOT a negative number).A friend of yours is considering two movie streaming services. Provider A charges $120 per year for the service regardless of the number of movies streamed. Provider B does not have a fixed service fee but instead charges $1 per movie. Your friend's annual demand for movies is given by the equation QD150-50P, where P is the price per movie. With Provider A, the cost of an extra movie is movie is Given your friend's demand for movies and the cost of an extra movie with each provider, if your friend used Provider A, he would watch movies, and if he used Provider 8, he would watch movies. This means your friend would pay with Provider B. of LM Use the following graph to draw your friend's demand curve for movies. Then use the green triangle to help you answer the questions that follow Note: You will not be graded on any changes you make to the graph. AM AM AME M With Provider B, the cost of an extra Quantity of Moves Your friend would obtain surplus with Provider B. for service with…
- Beta's Price Policy High Low A $20 B $30 High Alpha's $20 $10 Price Policy C $10 D $15 Low $30 $15 Help Save & Exit Submit Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If Alpha and Beta agree to a high-price policy through collusion, the temptation to cheat on that agreement is demonstrated by the fact that Multiple Choice Beta can increase its profit by lowering its price. Beta can increase its profit by increasing its price still further.You are managing a competitive corn farm that faces random demand. You must decide how much corn to produce before observing the actual price. As the 2 adjacent figure shows, the price will be $12 or $6 per bushel. The probability the price will be $12 is and the probability that the price will be $6 is - Your MC 3 3 $14 marginal cost curve is also included in the figure. PH=MRH $12 The quantity of corn that maximizes expected profit is bushels. $10 (Carefully enter your response considering the units on the axes of the given figure.) S8 The quantity you would produce if you knew the actual price was $12 is bushels. L= MRL The quantity you would produce if you knew the actual price was $6 is bushels $6 Suppose you produce the quantity of corn that maximizes expected profit, compared to what you would produce if you knew the actual price before producing. $4- The amount of profit lost if the actual price is $12 is $ The amount of profit lost if the actual price is $6 is $ (Enter a…You are considering entry into a market in which there is currently only one producer (incumbent). If you enter, the incumbent can take one of two strategies, price low or price high. If he prices high, then you expect a $60K profit per year. If he prices low, then you expect a $20K loss per year. You should enter if Group of answer choices you believe demand is inelastic. you believe demand is elastic. you belive the probability of low price is less than 75%. you believe the probability of low price is less than 25%. . the chance is at least 50/50.
- As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes before you learn how strong demand is for homes in this large neighborhood. There is a 80 percent chance of low demand and a 20 percent chance of high demand. The corresponding (inverse) demand functions for these two scenarios are P = 300,000 −300Q and P = 800,000 −200Q, respectively. Your cost function is C(Q) = 180,000 + 260,000Q. How many new homes should you build, and what profits can you expect? Give typing answer with explanation and conclusionAs the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes before you learn how strong demand is for homes in this large neighborhood. There is a 60 percent chance of low demand and a 40 percent chance of high demand. The corresponding (inverse) demand functions for these two scenarios are P = 400,000 −400Q and P = 900,000 −250Q, respectively. Your cost function is C(Q) = 125,000 + 430,000Q. How many new homes should you build, and what profits can you expect? Number of homes you should build: homes Profits you can expect: $In the short run, Multiple Choice TVC will increase for a time at a diminishing rate, but then beyond some point will increase at an increasing rate. TVC will increase for a time at an increasing rate, but then beyond some point will increase at a diminishing rate. TVC will increase by the same absolute amount for each additional unit of output produced. one cannot generalize concerning the behavior of TVC as output increases.