exclusivepapers.com
Sales Toll Free:
chat off
Home > Sample Essays > Economics > Managerial Economics Chapter 11 > Buy essay
← Building Business Application Savings →
Live Chat

Custom Managerial Economics Chapter 11 essay paper writing service

Buy Managerial Economics Chapter 11 essay paper online

Chapter 11

2. TC=800,000-5,000+100Q^2 and the price, P=$20,000

a) Marginal cost curve is given by the derivative of Total cost function.

MC=TC’=-5,000+200Q

               =-5000+200Q

b) Marginal Revenue function is given by the derivative of the Revenue function.

0
0
DAYS
:
0
0
HOURS
:
0
0
MINUTES
:
0
0
SECONDS
Discount Code

(R) =Q*P=Q (20,000) =20,000Q

 R’= 20,000

 F (MR) =20,000

   4. TC=$100,000+20Q

       a) TC=$100,000+20Q

           MC=TC’=$20

c) Let Q1 be the original Quantity demanded, Q2 be the new Quantity demanded, P1 be the original price and P2 be the new price.

 Price elasticity of demand= %change of quantity/%change in price

Order now

Where, %change of quantity= ((Q2-Q1)/Q1)/100 and %change in price= ((P2-P1)/P1)/100

             -1.5= (((Q2-Q1)/Q1)/100)/ (((P2-P1)/P1)/100)

P2= (P1 (Q2-Q1)-1.5Q2P1)/ -1.5Q2

 New price= (P1 (Q2-Q1)-1.5Q2P1)/ -1.5Q2

d) Marginal revenue at the new price (MRP2) will be given by the derivative of the revenue function.

R =price*quantity=P2*Q2

             P2= (P1 (Q2-Q1)-1.5Q2P1)/ -1.5Q2

             MR=R’=0.667P1-1.5P1^2

= 0.667P1-1.5P1^2

6. Q1=30,000 gallons @ Price, P=15 per year

Where; P1 is original price, P2 is the new price, Q1 is the original quantity and Q2 is the new quantity demanded.

 Arc elasticity of demand= (P1+P2)/ (Q1+Q2)*((Q2-Q1)/ (P2-P1))

-2= (15+P2)/ (30,000+34,500)*((4,500)/ (P2-15))   and therefore P2=$13.9887

=15-13.9887

=$1.0113

Chapter 12

Determining equilibrium output and selling price of each firm.

P=600-2QC-QD, TCC=2,500+100QC, and TCD=20,000+125QD

a) i)  Equilibrium output.

MCC=( TCC’) =100 and MCD= ( TCC’) =125

 RC= QC*P=QC (600-QC-QD)

MRC=RC’=600-2QC-QD

 RD=QD*p=QD (600-QC-QD)

 MRD=RD’=600-QC-2QD

At equilibrium; MRC=MCC

600-2QC-QD=100…….. (1)

 MRD= 600-QC-2QD=125……… (2)

Solving (1) and (2) simultaneously,

QC=175 and QD=150.

ii) Selling price, P=600-QC-QD=600-175-150=$ 275

b) Determining total profits for each firm.

Total profit=total revenue minus total cost,

 TP=TR-TC.

 TR=QC*P (firm C) =175*275=48,125

TR= QD*P (firm) 150*275=41,250

                     From TCC=2500+100QC

                      TCC=2500+175*100=42,500

                      TCD=20,000+125QD, TCD=20,000+125*150=38,750

Profit for firm C=TRC-TCC=$5,625

Profit for firm D=TRD-TCD=$2500

P=200-Qa-Qb  where TCa=1,500+55Qa+Qa^2 and TCb=1200+20Qb+2Qb^2

a) Equilibrium output and the selling price

MCa=55+2Qa (From TCa’)

 MCb=20+4Qb (From TCb’)

MRa=Qa (200-Qa-Qb) =200-2Qa-Qb (MRa’)

MRb=Qb (200-Qa-Qb) =200-Qa-2Qb (MRb’)

At long run equilibrium, MCa=MRa and MCb=MRb

55+2Qa=200-2Qa-Qb……… (1)

 20+4Qb=200-Qa-2Qb…….. (2)

Outputs, Qa=30 and Qb=25

Selling price, P=200-30-25=$145

b) TPa = TRa -TCa

 TRa=Qa*P=30*145=4,350t

 TCa= TCa=1,500+55Qa+Qa^2=1500+55(30) +30^2=4,215

Total profit of A=4,350-4,215=$135

TPb= TRb-TCb

TRb=25*145=3,625

TCb=1200+20Qb+2Qb^2=1,200+20(25) +2(25^2) =2,950

Total profit B=3,625-2,950=$675

TP(a+b)= 675+135=$810

5. QT=QL+QF, P=20,000-4QT, MCL=5,000+5QL, MCF=2,000+4QF

a) At maximum profit, MC=MR but  MCL=5,000+5QL

MRL=R’ but R=QL*P=QL (20,000-4QT) =20,000QL-4QLQT R’ =20,000-4QT

But MCL=MRL= 5,000+5QL=20,000-4QT………. (1)

MCF=2,000+4QF, MRF =R’ but R= QF*P

MRF=QF (20,000-4QT) =20,000QF-4QFQT f= 20,000-4QT

MRF=MCF = 20,000-4QT=2,000+4QF………. (2)

QL=857.14 and QF=1821.43

Max Profit=857.14 units.

         ii)  P=20,000-4QT But QT=QL+QF =857.14+1,821.43=2,678.57

             P=20,000-4(2,678.57) = $9,285.72

b) Total market demand at the price established by the Alchem,

P= $9,285.72, P=20,000-4QT QT= (20,000-P)/4

Total demand=2,678.57

a) QT=QL+QF

QF=QT-QL =2678.57-857.14

= 1821.43 units.

Buy Managerial Economics Chapter 11 essay paper online

Buy essayHesitating

Related essays

  1. Savings
  2. Management Accounting
  3. 12 Applications
  4. Wal-Mart Challenged Unions
  5. Artisan Holiday Solutions Plc
  6. Building Business Application
  7. Financial Accounting Theory
  8. Corporate Finance
  9. Sneak Organic and Traditional Foods
  10. Principles of Marketing Segmentation
What our customers say?
 
  • We accept:
  • Paypal
 

15% off your first custom essay order

Order now

PRICES
from $12.99/PAGE

X