2. A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his selling price by $1, he sells 6 less bottles each week. He turns over the operation to a Managerial Economics student for a week. The goal is to maximize revenue since the faculty member has a vast supply of Gatorade, and any unsold bottles can be sold in future weeks. The student takes over the operation for a week. She says she sold at the revenue-maximizing price of many units sold? Show your work/thought process: per bottle. How

2. A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his selling price by $1, he sells 6 less bottles each week. He turns over the operation to a Managerial Economics student for a week. The goal is to maximize revenue since the faculty member has a vast supply of Gatorade, and any unsold bottles can be sold in future weeks. The student takes over the operation for a week. She says she sold at the revenue-maximizing price of many units sold? Show your work/thought process: per bottle. How

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Del's and Rodney's are two plumbing services in a gentrifying area of South East London. Within the area they service, the two firms operate as a duopoly and together serve one hundred percent of the available local market. One of their key lines of business is visiting customer's homes to install a new shower rail. A student project has been investigating the local plumbing business and has estimated the following information for Del's and Rodney's: Total demand for new shower rails per week is given by P = 200 - 4Q Where Q is total market demand and can be divided between Del's (qd) and Rodney's (qr) such that Q = qd + qr Assuming that the marginal cost of serving an extra customer is £40 for each, and that marginal revenue for Del is given by MRd 2008qd - 4qr And marginal revenue for Rodney is given by MRr Then 2008qr - 4qd 8 CONTINUED
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4
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9. Profit maximization in the cost -curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for porch swings.Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of pressure cookers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $50 and the quantity of production from your s answer. Note: In the following question, enter a posi profit The rectangular area represents a short - run loss ber regardless of whether the firm earns a profit or incurs a loss. of thousand per day for the firm. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per pressure cooker) 100 8 90 80 70 30 20 10 0 0 5 MC ATC AVC 10 15 20 25…