You are the manager of a firm that sells a "commodity" in a market that resembles perfect competition, and your analytics team estimates that your cost function is C(Q) = 2Q + 3Q². Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 70 percent chance the market price will be $200 and a 30 percent chance it will be $600. a. Calculate the expected market price. b. What ouptut should you produce in order to maximize expected profits? units c. What are your expected profits? $

You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current Salary. You look into opening a small grocery store. Suppose that the store has annual cost of $150,000 for labor, $60,000 for rent and $30,000 for equipment. There is one-half probability that revenues will be $20,000 and a half probability that revenue will be $420,000   a. WHat is your accounting and economic profit? b. Will you quit your job and try your hand at being an entrepreneur? c. Suppose the government imposes a 25 percent tax on accounting profits: this tax is only levied if a firm is earning positive accounting profits. What will your after tax accounting profit be in the low revenue case?

You are the manager of a firm that sells a “commodity” in a market that resembles perfect competition, and your analytics team estimates that your cost function is C(Q) = 2Q + 2Q2. Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 60 percent chance the market price will be $350 and a 40 percent chance it will be $700. a. Calculate the expected market price. b. What ouptut should you produce in order to maximize expected profits? c. What are your expected profits?

You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current Salary. You look into opening a small grocery store. Suppose that the store has annual cost of $150,000 for labor, $60,000 for rent and $30,000 for equipment. There is one-half probability that revenues will be $20,000 and a half probability that revenue will be $420,000   a. In the high revenue case?  what will your average after tax Accounting profit be? hat about your average after tax economic profit? will you Want to quit your job and try your hand at being an entrepreneur?  other things equal, does the imposition of the 25 percent profit tax increase or decrease the supply of entrepreneurship in the economy?

You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current Salary. You look into opening a small grocery store. Suppose that the store has annual cost of $150,000 for labor, $60,000 for rent and $30,000 for equipment. There is one-half probability that revenues will be $20,000 and a half probability that revenue will be $420,000   a. In the low revenue Situation, what will your accounting profit or loss be? b. In the high revenue situation, what will your accounting profit or loss be? c. On average, how much do you expect your revenue to be?

DBM Industries produces exclusively an SP Juice in the market under the name DBM Sparkle .  The firm’s manager must determine how many bottles to produce before he knows what the market price will be.  Assume a competitive market situation.  Forecast from the Department of Economics (DOE) revealed that, there is 30 percent chance that the market price will be P80 per liter and a 70 percent chance that it will be P40 per liter when the juice hits the market.   If DBM’s cost function is  C = 200 + .0005Q2, how much juice should DBM produce to maximize expected profit ? How much is the expected price?

You are planning to setup a new food truck, where you will be selling two types of sandwiches (1.Veg, 2.Chicken), each sold for $10. You've decided to staff the food truck with two employees who will be paid $15/hr each. The truck is open for 10 hours and both employees work the full shift. If the cost of the ingredients is $5 for each sandwich, how many Veg and Chicken sandwiches do they need to sell to avoid having a loss at the end of the month?

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…

Suppose a firm is considering investing $20 million in a new marketing campaign. If the price is$65,000/vehicle, they estimate they would sell an additional 2,000 vehicles; If the price is $50,000/vehicle they estimate they would sell an additional 3,000 vehicles. Calculate the company’s profits under both scenarios.

Quick answer please If you are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current Salary. You look into opening a small grocery store. Suppose that the store has annual cost of $150,000 for labor, $60,000 for rent and $30,000 for equipment. There is one-half probability that revenues will be $20,000 and a half probability that revenue will be $420,000 a. WHat is your accounting and economic profit?