A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below P = 520 – 3Q1 P2 720 – 4Q2 - TC = 100Q, + 120Q2 + 4Q,Q2 What is the maximum profit the firm could make? O 24300 O 24800 O 25300 O 25800 O 26500

A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below P = 520 – 3Q1 P2 720 – 4Q2 - TC = 100Q, + 120Q2 + 4Q,Q2 What is the maximum profit the firm could make? O 24300 O 24800 O 25300 O 25800 O 26500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q2
Consider a corporation that has a total cost of TC = 6Q2 + 30. If the market is perfectly competitive and the price is P = $43, then this corporation's profit maximizing choice for Q is and the last unit produced will generate a marginal cost of_________ 3; $30. O 3: $42 O 4: $42 O 4: $30
6. The total cost curve for firms in a natural monopoly is estimated to be: TC = 2Q3 – 100Q² + 10000Q The government has a desired industry output of 100. What is the minimum efficient scale in this industry? O 5% O 10% O 12.5% O 25% O 50%
Demand for product X is X = 140 - 2P, where P is price. Two companies, Company OldRags and Company ZeroFun both produce good X. Both companies have total cost 22 + 2X, where X; is a company's production output. If OldRags produces 30 units and ZeroFun makes 42 units, then OldRags will have profit and ZeroFun will have profit O 938; 1,322 938; 1,222 O 978; 1,322 O 978; 1,222
ANSWER THE MULTIPLE CHOICE QUESTION.
7. A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below Р 3D 520 — 30, P, = 720 – 4Q2 100Q1 + 120Q2 + 4Q1Q2 - - TC =
7. You are the manager of a firm that produces products X and Y. You know the following reservation prices: Consumer 1 2 3 Product X 90 70 40 Product Y 60 140 160 a. What are your profits if you charge 40 for product X and 60 for product Y? b. What are your profits if you charge 150 for a bundle containing one unit of product X and one unit of product Y? c. What are your profits if you charge 210 for a bundle containing one unit of X and one unit of Y, but also sell the products individually at a price of 90 for X and 160 for Y?
✓ Question Completion Status: A non- competitive firm's demand curve is P = 10-4Q. So its MR is O 5-2Q O 10-40 10-8Q 05-Q QUESTION 3 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of MC = $200, how much is the equilibrium quantity (Q)? 360 400 560 620 QUESTION 4 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of MC = $200, how much is the equilibrium price (P*)? O $500 (4750 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ar
Q 0 1 2 3 4 5 $164 O $100 $104 $93 P 65 59 53 47 41 35 Previous TR MR The chart below summarizes the demand curve and total cost function faced by a firm with market power. Profit at the profit maximizing level is. wwww TC 30 33 39 48 60 75 MC Profit Next >
QUESTION 1 There is free entry and exit in O only perfect competition O only in monopolistic competition both perfect competition and monopolistic competition O neither perfect competition nor in monopolistic competition QUESTION 2 The equality of marginal revenue and marginal cost to reach a profit maximization level applies to O perfectly competitive markets O monopoly markets O monopolistically competitive markets all kind of markets QUESTION 3 The correct formula to calculate marginal cost is O total cost/Quantity O change in total cost/change in quantity O total cost x quantity O average total cost/quantity O O
1. The following company is in a price taking situation. Price (=marginal revenue) on the market for its products is equal to $3 per unit. Fixed cost is $1000 Fill in the table for all the columns. ( ) At which point should the company stop producing? At this point what is the per unit profit (mark- up or margin) for the company? Qty 0 100 200 300 400 500 600 VC $100 $300 $500 $700 $800 $1200 FC TC AVC ATC MC per unit MR per unit
O 10-Q O 10-20 QUESTION 2 A non-competitive firm's demand curve is P = 10- 4Q. So its MR is O 5-20 O10-4Q N 10-8Q 05-Q OC QUESTION 3 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of (Q)? 360 (400