1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fed [463]
3 years ago
7

Use the following information in answering questions 1 - 9. Assume persons of type 1 value quality level z and the product itsel

f such that the inverse demand for the product is given by P1 = 10 - Q1 + 2z. Similarly, for a person of type 2 the inverse demand for the product is given by P2 = 24 - 2Q2 + 6z. The AC and MC of producing the product with quality z is MC = AC= 2 + 4z. Assume that z can be either equal to 0 or 1
5. The profit maximizing quantity to sell to a person of type 2 when z=1 is
a. 4
b. 3
c. 6
d. 2
e. 5
Business
1 answer:
Mnenie [13.5K]3 years ago
3 0

Answer:

c. 6

Explanation:

The maximun profit is determined by the point where the Marginal Revenue (MR) is equal to the Marginas Cost (MC).

Solving for person of type 2 and considering Z=1.

The marginal cost equation:

MC = 2 + 4z

MC = 2 + 4(1)

MC = 6

The demand equation:

P2 = 24 - 2Q2 + 6z

P2= 24 - 2Q2 + 6

P2= 30 - 2Q2

To calculate the Marginal Revenue, we calculate, at first, the total profit:

Total profit=P*Q2

TP=(30-2Q2)*Q2

TP=30Q2 - 2Q2^2

Taking the derivative of the total profit, we obtain the Marginal Revenue

MR = 30 - 4Q2

Finally, set the MR and MC, and solve for Q2

30 - 4Q2 = 6

24 = 4Q2

<h2>Q2 = 6</h2>

You might be interested in
On January 1, 2016, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and insta
VikaD [51]

Answer:

B. $6,000

Explanation:

The computation of the annual depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($41,000 - $5,000) ÷ (6 years)  

= ($36,000) ÷ (6 years)  

= $6,000

The original cost is computed below:

= Purchase value + transportation and installation cost

= $40,000 + $1,000

= $41,000

8 0
3 years ago
Which shift in the demand curve most likely to describe a company in a monopolistically competitive market that begins to spend
DanielleElmas [232]
Which shift in the demand curve most likely to describe a company in a monopolistically competitive market that begins to spend more on advertising? An upward shift on the demand curve. A monopolistic competitive market is imperfect competition because many products sell similar products but they are different due to branding and quality used so they are not perfect substitutes for one another. 
4 0
3 years ago
qzuilet which of the following best describes upics? a. upics are federally funded. b. upics are paid by grant monies. c. upics
ioda

Private businesses are employed by CMS as the Unified Program Integrity Contractor (UPIC).

<h3>What is a UPICs used for?</h3>

Investigating instances of alleged fraud, waste, and abuse in Medicare or Medicaid claims is UPIC's main objective. They conduct early and prompt investigations and act right away to prevent the improper payment of funds from the Medicare Trust Fund.

<h3>What role do Medicaid Integrity Contractors (MICs) play in society?</h3>

CMS has agreements with organizations called Audit Medicaid Integrity Contractors (Audit MICs) to carry out post-payment audits of Medicaid providers. The primary objective of provider audits is to find overpayments and ultimately reduce the payment of erroneous Medicaid claims.

To know more about Centers for Medicare and Medicaid Services visit: brainly.com/question/14293469

#SPJ4

4 0
1 year ago
The bonds issued by United Corp. bear a coupon of 6 percent, payable semiannually. The bond matures in 20 years and has a $1,000
pishuonlain [190]

Answer: 6.40%

Explanation:

Use Excel to calculate this by the formula;

= RATE(Nper,Pmt,-Pv,Fv)

Nper is number of periods = 20 * 2 = 40 semi annual periods

Pmt is the payment = $6%/2 * 1,000 = $30

Pv is the present value = $955

Fv is future value or face value = $1,000

= RATE (40,60,-955,1000)

= 3.20% * 2 (because this is a semi annual rate)

= 6.40%

8 0
3 years ago
A program requiring work in exchange for temporary assistance is called _____.
ELEN [110]
Workfare. Your Welcome!
3 0
3 years ago
Read 2 more answers
Other questions:
  • When a business message provides the rationale for a request before making the specific request, the message is said to be?
    7·1 answer
  • You have a sub-contracting job with a local manufacturing firm. your agreement calls for 5 annual end-of-year payments of $50,00
    13·1 answer
  • What are the three kinds of maintenance a manager has to carry out for a managed property?
    14·1 answer
  • NewLinePhone Corp. is very risky, with a beta equal to 2.8 and a standard deviation of returns of 32%. The risk-free rate of ret
    8·1 answer
  • If Congress cuts spending to balance the federal budget, the Fed can act to prevent unemployment and recession by
    10·1 answer
  • Economies of scale arise when a. an economy is self-sufficient in production. b. individuals in a society are self-sufficient. c
    10·1 answer
  • 1. Explain the meaning of Newton's Law of<br>Gravitation.​
    15·1 answer
  • Rachelle owns a warehouse that she purchased in September, 19 years ago. The purchase price was $400,000. During May of the curr
    5·1 answer
  • Your company has sent you an email telling you your department must increase the daily output goal of 120 widgets per hour, to 1
    12·1 answer
  • A random sample of records of sales of homes from February 15 to April 30, 1993, from the files maintained by the Albuquerque Bo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!