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A firm has the following revenue and cost functions. TR = 60 Q – Q^2
TC = 1 /2 Q^2 +30Q + 30 Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)
- The following is the demand function for a flavored milk producing company.
Q = 5000 – 100 P
Where Q is the sales and P is the price of the drink.
a. How many drink bottles could be sold at Rs.15 each?
b. What should the price be for the company to sell 2000 drink bottles.
what is mixed economy?
What does it mean by “convergence” among countries? On what conditions do countries converge at their GDP level? Please explain using the Solow-growth model.
* determine the equilibrium quantity and price?
* Suppose the ad valorem tax of 10% is imposed on buyers of the wine,
graphically sketch the behavior of the demand and supply curves.
* what is the new equilibrium price and quantity?
* what is the price that buyers pay and supplies get ?
* Also determine the tax revenue and tax incidence on the buyers and sellers
Walk through the optimization process and identify the optimal choice for this consumer in both x and y (Hint: the MUx = 2xy2 and MUy = 2x2y)
The main function of wages are
A. Estimated
B. Compensatory
C. Remuneration
D. Piece system
Nowjuice, Inc., produces Shakewell® fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months.
MonthMayJunJulAugSepOct Forecast4,0004,8005,6007,2006,4005,000
Use the following information to develop aggregate plans.
Regular production cost$10per case Regular production capacity5,000cases Overtime production cost$16per case Subcontracting cost$20per case Holding cost$1per case per month Beginning inventory0
1.Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan.
a.Use level production. Supplement using overtime as needed. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Period May Jun Jul Aug Sep Oct Total Forecast4,0004,8005,6007,2006,4005,00033,000 Output Regular Overtime Output - Forecast Inventory Beginning Ending Average Backlog Costs: Regular$$ Overtime Inventory Back orders Total$$
b.Use a combination of overtime (500 cases per period maximum), inventory, and subcontracting (500 cases per period maximum) to handle variations in demand. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Period May Jun Jul Aug Sep Oct Total Forecast4,0004,8005,6007,2006,4005,00033,000 Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Regular$$ Overtime Subcontract Inventory Back orders Total$$
c.Use overtime up to 750 cases per period and inventory to handle variations in demand. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Period 1 2 3 4 5 6 Total Forecast4,0004,8005.6007,2006,4005,00033,000 Output Regular Overtime Output - Forecast Inventory Beginning Ending Average Backlog Costs: Regular$$ Overtime Hire/Lay off Inventory Back orders Total$$
2.Which plan has the lowest total cost?
SecondFirstThirdNeither
A company can purchase a piece of equipment for Rs 4,000,000 and sell it for Rs 800,000 at the end of 6-year service life, or it can lease the unit for the same period by making a first of the year payment of Rs 600,000. Compare the equivalent annual costs of the alternatives, using an interest rate of 15 percent.
Suppose that the price of an ice cream cone increases from PRs. 60 to PRs. 80 and the amount you buy falls from 12 to 8 cones.
Requirements:
a. Calculate price elasticity of demand in Percentage
b. Interpret the answer
c. What type of elasticity is this i.e. perfectly elastic, perfectly inelastic, unitary elastic,
relatively elastic or relatively inelastic.
#339914 on Dec 2023