subject
Business, 07.06.2020 00:04 violetmeadow4

Harry Smith owns a metal- producing firm that is an unregulated monopoly. After considerable experimentation and research, he finds that the firm’s marginal cost curve can be approximated by a straight line, MC= 60 +2Q, where MC is marginal cost (in dollars) and Q is output. The demand curve for the product is P =100 - Q, where P is the product price (in dollars) and Q is output. A. If Smith wants to maximize profit, what output should he choose? B. What price should he charge?

Answers

ansver
Answer from: gabby640

1. 10 units

2. 90 dollars

Explanation:

1. Total revenue = P x Q

= (100 - Q) x Q

= 100 - Q^2

Marginal revenue = dTR/dQ

=100 - 2Q

MR = MC

100 - 2Q = 60 + 2Q

100 - 60 = 4Q

40 = 4Q

Q = 10 units

2. Putting price of Q = 10 in the price equation

P = 100 - Q

P = 100 - 10

Price = 90

ansver
Answer from: Quest
; djf; as
ansver
Answer from: Quest
Answerstructural and frictional unemployment;

Other questions on the subject: Business

image
Business, 21.06.2019 23:00, E1nst31n44
You and your new australian bride matilda, are applying for a loan and are required to submit a balance sheet with your net worth. you own a 2008 toyota camry that you bought last month for $9,995. the kelly blue book value for this car is $13,995. you owe $8,150 on the car loan for the camry. you pay off your visa credit card every month and have not paid any credit card interest this year. the current visa credit card balance is $3,522, and the next statement is due in 15 days. you have a student loan balance of $6,500. you presently have $425 in your checking account and $1,540 in your savings account. you own 100 shares of ibm stock that you purchased for $85.50 per share. one share of ibm is now selling for $158.42. you own computers and other electronics that you purchased for $4,100 but could probably sell today on e-bay for $1,800. your gross income is $80,000 per year. what is your current net worth? (see wb ch. 2 example 2.3)
Answers: 1
image
Business, 22.06.2019 16:10, boogerbuttday
Omnidata uses the annualized income method to determine its quarterly federal income tax payments. it had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). what is omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?
Answers: 1
image
Business, 22.06.2019 19:00, xojade
1. what must one do to perform the essential managerial task of controlling in achieving organizational goals? a. motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals b. choose appropriate organizational goals and courses of action to best achieve those goals c. establish task and authority relationships that allow people to work together to achieve organizational goals d. establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals
Answers: 1
image
Business, 22.06.2019 20:00, moneykingmarco079
What part of the rational model of decision-making does the former business executive “elliott” have a problem completing?
Answers: 2
You know the right answer?
Harry Smith owns a metal- producing firm that is an unregulated monopoly. After considerable experim...

Questions in other subjects: