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A firm has the following revenue and cost functions.
TR = 120 Q – Q2
TC = 12 Q2 +30 Q + 10
Determine the quantity level at which the firm maximizes its total profit.
Suppose the majority of the residents of Birraland live close to the border and have access to beer at a lower price either in another province or in a neighboring country. What do you expect to occur? What does this imply about the ability of the local government of Birraland to independently set their beer pricing policy? Which jurisdiction is likely to be more problematic, other provinces or the neighboring country?
gooseberries. The quantity demand of gooseberries is Qd= 120-4P, and
quantity supply is Qs= 2P in Belgium. If world price of gooseberries is
Rs 15 then Belgium will export or import gooseberries and by how
much?
When Government imposes a price ceiling
“If the business operates in the economy, there will be stage of peak, slow down and losses
also. That’s the part of business”. Which concept is explain in the statement?
A monopolist is faced with two distinct damned function given as Q1=48-025P1----(1), Q2=15-0.04P2----(2).If TC=60+15Q----(3) Question. (1) Demonstrate the profit levels for market with discrimination. (2) Demonstrate the profit levels for market without discrimination.(B) Discuss your observation.
A monopolist is faced with two distinct damned function given as Q1=48-025P1----(1), Q2=15-0.04P2----(2).If TC=60+15Q----(3) Question. (1) Demonstrate the profit levels for market with discrimination. (2) Demonstrate the profit levels for market without discrimination.(B) Discuss your observation.
A firm's unit capital and labor costs are $1 and $2 respectively. If the production function is given by Q = 4LK + L^2. Find the maximum output and the level of K and L at which it is achieved when the total in put cost is fixed at $105. Verify that the ratio of marginal product to price is the same for both inputs at the optimum
Consider the total cost function TC= 120y-y^2+0.02y^2.
a. What level of y yields minimum cost per unit of y?
b. What is the relationship between MC and AVc at the above level of output?
You are given the following utility function and price of commodities q1 and q2:
U = 3q1+q1q2-5q2-15
P1=3 and p2=2
If the corresponding bugdet is 20.
i. Write the consumer's budget equation
ii.construct a constrained utility maximization problem out of the information given above
iii. Write the augmented objective function?
Iv. Find the optimum level of U
V. Is the second order condition for a maximum satisfied?
Vi. Find the levels of q1 and q2 that will satisfy the first order condition for a maximum.
