What is the price elasticity of demand at the profit-maximizing price for a company that has demand function Q = 140 - 0.2P and cost function C = 100Q? A. -1/5 B. -1 C. -4/3 D. -2

11. A company produces a certain good for which the (inverse) demand function is given by p = 15 - 2q, where p is the unit price (expressed in some monetary unit) and q is the quantity sold (expressed in some non-specified unit). The fixed costs amount to 6.5 monetary units and the variable costs amount to 1 monetary unit per non-specified unit of the good. We assume that all goods produced are sold. a. Find the function equation for the profit functionP in terms of the quantity q. b. Find the domain of the profit function P. c. Determine for which production levels q the company makes a profit.

The demand function for product is p = -4q+400 and the average cost for producing q units 500 is c = 37q + 40 + where p= price, and q= quantity demand. 2 9 1. 2. 3. 4. Compute the point elasticity of demand and find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result. Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results. What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.

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4 Given: HP is trying to decide if they should run a 'Back-To-School' special on entry level computers. Estimate the slope of the annual supply & demand curves based on these quarterly price/quantity combinations. Q1: $500 Q2: $700 Price 0.0 Price Qp = 3.75 Question 5: Demand for HP Computers 0.0 0.0+ QD = Question 6: Supply for HP Computers 0.0 4.25 million Q = 6.6 Qs =7.5 million Quantity million Quantity million

Question 1 Sal's Streaming Company streams TV shows to subscribers in the US and Canada. Demand is Qus 50 (1/3)Pus - QCA 80 (2/3)P CA = - where Q's are in thousands of subscriptions per year and P's are the subscription prices per year. The cost of providing Q units of service is given by TC = 1000 + 30Q, where Q = Qus+ QCA (a) What are the profit-maximizing prices and quantities for the US and Canadian markets? (b) As a consequence of a new VPN service that Facebook has developed, subscribers in Canada are now able to get the US streams and vice versa, so Sal can charge only a single price. What is the profit-maximizing single price that he should charge? (c) In which situation is Sal better off? In terms of consumers' surplus which situation do people in Canada prefer and which do people in the US prefer? Why?

1)lf the price of a product increases by 10 % and demand decreases by 25%. It is the situation of: A) Relatively elastic demand B) Unitary elastic demand C) Relatively inelastic demand D) Perfectly elastic demand 2. Which one of the following is average total cost (ATC) if the output is 100 units and total cost is RO 30000? A) 300 B) 30100 C) 150 D) 3100

E.g.1: A demand function is given by the equation P = 24 6lnQ ➤ Find the equation of TR (total revenue) and determine for which value of Q is TR maximised. Find MR (marginal revenue) as a function of Q Show that MR is a positive decreasing, concave up function.

Assume lawyer services have an elasticity of demand of 2.0 in absolute value. Currently, a lawyer charges $300 per consultation and she has 100 consultations per week. If she raises her rate to $375 perconsultation (a 25% increase) her revenue wil (use the general formula for elasticity not the midpoint formula)rise from s30.000 per week to $31500 per weekrise from $30.000 per week to $33750 per weekfall from $30.000 per week to $18750 per weekfal from $30,000 per week to s26000 per week

No written by hand solution Suppose that headphones can be produced at a constant marginal cost. Headphone A is priced at $20 and headphone B is priced at $30.     (a) If the Lerner index of headphone A divided by the Lerner index of headphone B is 0.5, what is the marginal cost of producing headphones?   (b) Using your answer to part ‘a’, what is the elasticity of demand of headphone A? What is the elasticity of demand of headphone B?