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
What do you mean by public service?​
Inessa05 [86]

A public service is something provided by the government or another official entity for the benefit of all members of a society or community, such as health care, transportation, or garbage management.

Any service designed to meet the specific needs of the total population of a community is considered a public service. People who live in a government jurisdiction can access public services directly from public sector organizations or through public financing of private companies or nonprofits (or even as provided by family households, though terminology may differ depending on context). Other public services are provided on behalf of or in the best interests of the citizens of a government. The phrase refers to a social consensus .

Learn more about  public service here.

brainly.com/question/28161669

#SPJ1

6 0
1 year ago
An advertiser enables target cost-per-acquisition (cpa) bidding and notices that conversions decrease. what might cause this?
aleksandrvk [35]
It could be caused by the fact that the target CPA bid was lower than the expected or recommended amount
3 0
3 years ago
Read 2 more answers
At the beginning of the year, Monroe Company estimates annual overhead costs to be $2400000 and that 300000 machine hours will b
Neko [114]

Answer:

Allocated MOH= $252,000

Explanation:

Giving the following information:

Estimated overhead= 240,000

Estimated machine hours= 300,000

Actual machine hours for the year were 315000 hours.

First, we need to calculate the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate=  240,000/300,000= $0.8 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 0.8*315,000= $252,000

3 0
3 years ago
Garfield Company has the following information for the current​ year: Beginning fixed manufacturing overhead in inventory $230,0
Lemur [1.5K]

Answer:

the difference between operating incomes under absorption costing and variable​ costing is $180,000 .

Explanation:

The difference between the two Operating Incomes lies in the amount of Fixed Overheads that has been deferred in Inventory.

So, calculation of the difference will be as follows :

Beginning fixed manufacturing overhead in inventory              $230,000

Less Ending fixed manufacturing overhead in inventory           ($50,000)

Difference  between  absorption costing and variable​ costing $180,000

3 0
3 years ago
Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labo
professor190 [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $8.70 per direct labor-hour. The production budget calls for producing 6,000 units in February and 6,500 units in March.

We need to determine the total direct labor hours needed for each month.

February:

Total direct labor hours= 6,000*0.07= 420 hours

Total direct labor costs= 420*8.7= $3,654

March:

Total direct labor hours= 6,500*0.07= 455 hours

Total direct labor costs= 455*8.7= $3,958.5

7 0
2 years ago
Other questions:
  • Human resource​ (HR) management includes activities such​ as: A. Analyzing competitors B. ​Disciplining, promoting,​ transferrin
    9·1 answer
  • Describe the Allowance for Doubtful Accounts, account:1. What type of account is it? Contra Asset Account 2. What it’s normal ba
    9·1 answer
  • What happened to stock prices on october 19, 1929?
    11·1 answer
  • An installment note payment includes a.interest. b.principal plus interest. c.principal. d.None of these choices are correct.
    12·1 answer
  • On January 1 of the current year, Anna and Jason form an equal partnership. Anna contributes $50,000 cash and a parcel of land (
    15·1 answer
  • On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $19.7 million cash to expand operations. The l
    11·1 answer
  • ¿La desigualdad social, puede afectar en los principios de administración de una empresa?
    14·1 answer
  • Previous
    5·1 answer
  • The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce: Group of answe
    10·1 answer
  • Market failure describes a situation in which the market itself ________ in a way that balances social costs and benefits.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!