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
Hope you have good day
Alina [70]

Answer:

Hope you have a good day also!!!

Explanation:

5 0
3 years ago
Read 2 more answers
Nathan noticed that a company that has great potential just declared a​ ________ because its stock price was getting too high fo
ratelena [41]

Answer:

Stock-split

Explanation:

A stock-split means that the existing price of one share of Nathan will be divided into two such that the two new shares will be exactly equal to one old share. Once that is done, small investors will be more comfortable buying the shares at a cheaper price.

Whether before or after the stock-split. A given amount invested will give an investor the same percentage ownership in the same company. It has only made Nathan's shares look cheaper to attract small investors while the market capitalization (overall value) of Nathan remains the same.

5 0
4 years ago
"Free" items only cost the company that gives them away.<br> O A.<br> True<br> OB. False
Semmy [17]

Answer:

A. True

Explanation:

8 0
3 years ago
Read 2 more answers
Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually
My name is Ann [436]

Answer:

Ans. c) Income tax rate must be 23%

Explanation:

Hi, the total income of Thailand´s workforce is:

Total Income=35,709,487 people*\frac{8,630}{person} = 308,172,872,810

Since Thailand´s government needs to raise $70,000,000,000, the tax rate has to be:

TaxRate=\frac{70,000,000,000}{308,172,872,810} =0.23

So Thailand´s tax rate must be: c. 23%

Best of luck.

4 0
3 years ago
Read 2 more answers
What habit should you follow to avoid the risk of contracting illnesses and infections
Setler79 [48]

washing your hands would for sure be a habit you should follow to avoid illnesses and infections.

4 0
3 years ago
Other questions:
  • During the year, a company had the cash flows listed below. What was the total net cash flow for the year? Cash inflow from oper
    7·1 answer
  • Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $
    5·1 answer
  • At the intersection of the short-run aggregate supply curve, the aggregate demand curve, and the long-run aggregate supply curve
    7·1 answer
  • Paragon Leasing has been approached by Mid-America Trucking Company (MATC) to provide lease financing for a fleet of new tractor
    10·1 answer
  • Assume an economy is incurring unemployment. The effect of resolving this problem will be to: Group of answer choices 1. move th
    7·1 answer
  • Assume the following property and equipment footnote was obtained from the Deere &amp; Company's 2016 10-K. Property and Depreci
    9·1 answer
  • 16. What size paper should you use for a legal document?
    13·1 answer
  • A company is about to begin production of a new product. The manager of the department that will produce one of the components f
    8·1 answer
  • With respect to the consumer price index, the substitution bias arises because:
    12·1 answer
  • If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!