Exercise 5.4 A company is producing and selling branded milk with the following total cost function: CT(q)= 0.2q²+q+70. If the demand function for this brand of milk is: P=15-0.5q: a) Calculate the optimal price of milk, as well as the optimal quantity sold and the profits of the company.   b) Calculate the price elasticity of demand in the equilibrium of the company.   c) Justify why the company has an excess of productive capacity.   d) Represent graphically.

For the following demand function: Q(P) = 2015 - 31P Calculate the price where the quantity demanded falls to zero

1. A company has estimated that its total cost (TC) function is: TC = 12,000 + 60Q Where Q refers to quantity. The marketing department of this company is unable to estimate the demand function for the company but believes the price elasticity for the company's products is (-)4. Given this information, calculate the profit maximising price

A bookstore owner can sell 26 magazines at a price of $1.38 per magazine. If the price is $1.10, he can sell 30 magazines. The total cost to purchase x magazines is C(x) = 0.65x+7.75 dollars. Step 1 of 3: Assuming the demand function is linear, find an equation for D(x). Do not round your answer.

Question #2 Consider the following demand function for frozen dinners where QD is the quantity of frozen dinners demanded per week, P is the price per frozen dinner, PF is the price per fast food meal, Y is the average yearly consumer income, and A is the number of advertisements for frozen dinners.    Demand Function for Frozen Dinners: QD = 1,000 – 10P + 20PF – 0.01Y + A         Suppose that a frozen dinner sells for $4, a fast food meal sells for $6, average yearly consumer income is $50,000, and that there are 20 advertisements for frozen dinners. Calculate and interpret the income elasticity of demand. Calculate and interpret the cross-price elasticity of demand with respect to fast food meals.

If the demand function for a company is given by the equation p= -(16+4)q+(16+16000), and the supply is given by the equation q=(16+550)-p. Find the equilibrium point.

The demand function for Bulova watches (X) has been estimated to be QX = 1,000 - 1.5PX + 2Y + 1.75Py where Y is income, QX is the quantity demanded of Bulova watches in units, PX is the price per unit of a Bulova watch and PY is the price of a Patek Philippe watch (Substitute). When P = $3, PY = $10 and Y = $20, determine the price elasticity of demand.   a. 0.0057 b. 0.0043 c. 0.0014 d. None of these are correct

The manager of a bicycle shop has found that, at a price (in Rands) of p(x) = 150 –x/4 per bicycle, x bicycles will be sold . Answer the following:• Find an expression for the total revenue from the sale of x bicycles. (Hint: Revenue = Demand *Price. )• Find the expression for the quantity to be sold q if the demand function demand is given byp = -10q + 3200• What is the number of bicycles x, sold if the price is R40

The demand functions for a pineapple is given by p=-0.10x+15.  a.) find the revenue function b.) how many pineapples will you sell when you are maximizing revenue? c.) what price gives the maximum revenue and what is the maximum revenue?

The demand function of dog breeders for electric dog polishers is qb = max{200−p, 0}, and the demand function of pet owners for electric dog polishers is qo = max{90 − 4p, 0}. (a) At price 150, what is the price elasticity of dog breeders’ demand for electric dog polishers? (it's a negative number) (b) At price 15, what is the price elasticity of pet owner’ demand for electric dog polishers? (it's a negative number) (c) Find a nonzero price at which there is positive total demand for dog polishers and at which there is a kink in the demand curve. $_____. What is the market demand function for prices below the kink. What is the market demand function for prices above the kink? ______ + P