Managerial Economics

1 ) The yearly take in for your wid annoys is estimated by hold of a regression . The equation estimated isQuantityDemanded degree centigrade00-5 Price 0 .01 I hundred t eqn 1The TC (Q 50 5 Q 0 .024 Q2 The fringy tax income function isMR 20000-4 Q 0 .01 I degree centigrade t bare(a) tax incomeThe b dispositionline address to function isMC 5 0 .048 Q MarginalCosta . What is the market structure of this marketTransforming equation 1 interms of price and presumptuous zero values of I[income] and t[time] , we get eqn 3eqn 3Graphing eqn 3 yields in the demand wrench shown belowSince the demand curve is sloping down , this is a characteristic of a monopolistic marketb . What is the profit maximising railroad siding and price in decimal point 20 if the income is 20000upper limit profit occurs when marginal revenue (MR ) equa ls marginal live (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 high hat profit in period 20 if the income is 20000Qmax 5483TC (Qmax 748 ,983 .92 value(Ib ,tb Qmax-TC (Qmax hit 12 ,629 ,536 .06 USD upper limit ProfitATC TC (Qmax /Qmax Average ATC 136 .60 USDProUnit(Ib ,tb )-ATCProUnit 2440 .0-137ProUnit 2 ,303 .

40 USD Maximum Profit per unit2 ) You sewer buy a jacket that will urinate the cost functionTC2 (Q 40 3 Q 0 .012 Q2And the marginal cost functionMC2 (Q 3 0 .024 QGivenRor 15 Requ ired Rate of ReturnCa 7500 USD capn 5 turn! of events of yearsi 2 annual tempo of outgrowth of income Expecting 2 increase in income per yearGet annual fix value of incomeMR2 IPV Marginal Revenue equals annual incomeMR2 4 ,416 .32 net 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 try to do to inprove the long term profitability of thea . in question 1 - accession production every period to match maximizing outputb . in question 2 - Increase the price of capital to increase profitPAGE...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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