Home / Questions / Suppose the microchip producer discussed in this chapter faces demand and cost equations g...
Suppose the microchip producer discussed in this chapter faces demand and cost equations given by Q = 8.5 - .05P and C = 100 + 38Q. Choosing to treat price as its main decision variable, it writes profit as
1r = R - C
= [P(8.5 - .05P)] - [100 + (38)(8.5 - .05P)]
= -423 + 10.4P - .05P ^{2 }.
Derive an expression for M1r = d1r/dP. Then set M1r = 0 to find the firm’s optimal price. Your result should confirm the optimal price found earlier in the chapter.
Jun 19 2020 View more View Less
use the Poisson distribution to find the indicated probabilities.Radioactive Decay Radioactive atoms are unstable because they have too much energy. When they release ...
May 21 2021________ are the largest markets in the world. A) United States equity markets B) European debt markets C) Global currency markets D) Chinese export markets
Apr 20 2021A project has the following estimated data: price = $58 per unit; variable costs = $36 per unit; fixed costs = $20,000; required return = 10 percent; initial investment =...
Aug 24 2020What is the key to making good decisions under risk?
Mar 17 2020What is the importance of considering free cash flow, as opposed to just the earnings implications of a financial decision?
Jun 07 2021Your company doesn't face any taxes and has $263 million in assets, currently financed entirely with equity. Equity is worth $9.3 per share, and book value of equity is e...
Aug 05 2021Give an example of a negative externality and a positive externality? Explain why market outcomes are inefficient in the presence of these externalities.
May 04 2021Let xt be a stationary Gaussian process with mean µ and autocovariance function γh. Definethe nonlinear time seriesyt = exp(xt)Find the mean function, the autocovariance ...
Apr 04 2020Life Span DevelopmentDevelopment is defined as the pattern of change that begins at conception and continues through the life span1) Define and briefly describe the biolo...
Mar 19 2020Find the real and reactive power supplied by the source in the circuit shown in Figure P7.26. Repeat if the frequency is increased by a factor of 3. 1a. The source pow...
Jun 18 2020