Answer:
Option (B) is correct.
Explanation:
XA + XB = 100
QA = 100XA
QB = 200XB - XB^2
Use the fact that,
XA = 100 - XB
Now total production is Q = QA + QB
Q = 100XA + 200XB - XB^2
Q = 100 × (100 - XB) + 200XB - XB^2
Q = 10,000 + 100XB - XB^2
Output is maximum when Q'(XB) = 0
100 = 2XB = 0
XB = 50
XA = 50
Therefore, the firm’s profit-maximizing allocation of input X is 50 units of XA and 50 units of XB.
True Market Research is necessary to discover existing products
Ok this question is poping up a lot and I need to know if there are any options to choose from.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Total surplus = 4000
so correct option is D. $4000
Explanation:
given data
P = 300 - 2QD
P = 100 + 3QS
to find out
sum of the consumer and producer surplus
solution
we first equating both as equilibrium at QD = QS
so
300 - 2Q = 100 + 3Q
solve we get
Q = 40
so P will be
P = 3 00 - 2 × 40
P = 220
Consumer surplus area above price and below demand so
Consumer surplus = 0.5 × (300 - 220) × 40
Consumer surplus = 1600
and
Producer surplus area above supply curve and below price so
Producer surplus = 0.5 × (220 - 100) × 40
Producer surplus = 2400
so Total surplus will be
Total surplus = Consumer surplus + Producer surplus
Total surplus = 1600 + 2400
Total surplus = 4000
so correct option is D. $4000
