Answer:
Explanation:
Given the following data about Dayna's Doorstep Inc(DD) :
Cost given by; C = 100 - 5Q + Q^2
Demand ; P = 55 - 2Q
A.) Set price to maximize output;
Marginal revenue (MR) = marginal cost (MC)
MR = taking first derivative of total revenue with respect to Q; (55 - 2Q^2)
MC = taking first derivative of total cost with respect to Q; (-5Q + Q^2)
MR = 55 - 4Q ; MC = 2Q - 5
55 - 4Q = 2Q - 5
60 = 6Q ; Q = 10
From
P = 55 - 2Q ;
P = 55 - 2(10) = $35
Output
35(10) - [100-5(10)+10^2]
350 - 150 = $200
Consumer surplus:
0.5Q(55-35)
0.5(10)(20) = $100
B.) Here,
Marginal cost = Price
2Q - 5 = 55 - 2Q
4Q = 60 ; Q = 15
P= 55 - 2(15) = $25
Totally revenue - total cost:
(25)(15) - [100-(5)(15)+15^2] = $125
Consumer surplus(CS) :
0.5Q(55-25) = 0.5(15)(30) = $225
C.) Dead Weight loss between Q=10 and Q=15, which is the area below the demand curve and above the marginal cost curve
=0.5×(35-15) ×(15-10)
=0.5×20×5 = $50
D.) If P=$27
27 = 55 - 2Q
2Q = 55 - 27
Q = 14
CS = 0.5×14×(55 - 27) = $196
DWL = 0.5(1)(4) = $2
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
Answer:
True
Explanation:
Efficiency related expenditures are more closely with day-to-day servicing of the machine. Such an expenditure just maintains machine's capacity to save the future economic benefits rather than improve its capacity.
Answer:
Consider the following calculations
Explanation:
A - Increase in oil prices decreases SRAS (SRAS shifts to the left) and increase in consumer confidence will increase AD (AD will shift to the right).
B - Household wealth falls, as a result AD will decrease (AD shifts to the left) and firms expect the price level to fall - decrease in firm's expectations about future price will cause forms to increase aggregate supply now. As a result, SRAS shifts to the right.
C - Federal reserve cuts interest rate, Therefore cost of borrowing decreases, investment increases, aggregate demand increases. AD shifts to the right.
New technology makes workers more productive. Aggregate supply increases. SRAS shifts to the right.
D - Both AD and SRAS shifts to the left.
Answer:
Market survey
Explanation:
For Donna to open a new business in which she will be successful and very profitable she needs to know what problem/need her new business/product can solve in the society. this is very important to know before engaging in any form of business because businesses that solve problem/needs of its community tend to strive better even in a bad economy.
The best marketing strategy to determine this need/want is called Market survey. this survey can be carried out by creating a one page questionnaire about her intended product and post/send it to the relevant audience for appropriate feedback and also to professionals in her intended product. the feedback she gets from the questionnaire will help inform her on the best product to sell.
