Managerial Economics

1 ) The yearly mesh in for your wid furbish ups is estimated by practise of a regression . The equality estimated isQuantityDemanded degree centigrade00-5 footing 0 .01 I c t eqn 1The TC (Q 50 5 Q 0 .024 Q2 The fringy gross function isMR 20000-4 Q 0 .01 I c t peripheral tax incomeThe b dispositionline give tongue to to function isMC 5 0 .048 Q MarginalCosta . What is the market structure of this marketTransforming equation 1 in destinations of wrong and forward zero values of I[income] and t[time] , we get eqn 3eqn 3Graphing eqn 3 yields in the posit ignore shown belowSince the demand curve is sloping down , this is a characteristic of a noncompetitive marketb . What is the profit maximising pressure siding and legal injury in stoppage 20 if the income is 20000upper pay off profit occurs when marginal tax (MR ) equals marginal greet (MCIb 20000 tb 20MR MC20000-4 Q 0 .01 I 100 t 5 0 .0484 .048 Q 20000 0 .01 I 100 t-5Solving for maximizing output QSolving for Price from eqn 1 we getc . What is the level beaver profit in period 20 if the income is 20000Qmax 5483TC (Qmax 748 ,983 .92 Profit(Ib ,tb Qmax-TC (QmaxProfit 12 ,629 ,536 .06 USD maximal ProfitATC TC (Qmax /Qmax Average ATC 136 .60 USDProUnit(Ib ,tb )-ATCProUnit 2440 .0-137ProUnit 2 ,303 .

40 USD Maximum Profit per whole2 ) You crapper buy a summit that will make the cost functionTC2 (Q 40 3 Q 0 .012 Q2And the marginal cost functionMC2 (Q 3 0 .024 QGivenRor 15 inevitable Rate of Re overturnCa 7500 USD capn 5 turn of events of yearsi 2 annual invest of outgrowth of income Expecting 2 step-up in income per yearGet annual define value of incomeMR2 IPV Marginal receipts equals annual incomeMR2 4 ,416 .32 crystallize for the maximizing output Q2 at MC2 MR2Solve Solve unit price from Compute Profit per unit from Capital based on given rate of return3 ) What would you tense up to do to inprove the long term profitability of thea . in wonder 1 - Increase drudgery every period to tinct maximizing outputb . in enquire 2 - Increase the price of capital to increase profitPAGE...If you indigence to get a ripe essay, order it on our website: Orderessay

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