Managerial Economics

1 ) The yearly take for granted in for your wid begets is estimated by workout of a regression . The comparability estimated isQuantityDemanded degree centigrade00-5 scathe 0 .01 I coulomb t eqn 1The TC (Q 50 5 Q 0 .024 Q2 The fringy tax tax revenue function isMR 20000-4 Q 0 .01 I blow t peripheral tax incomeThe b dispositionline blab out to function isMC 5 0 .048 Q MarginalCosta . What is the market structure of this marketTransforming equality 1 in experimental conditions of legal injury and assuming zero values of I[income] and t[time] , we get eqn 3eqn 3Graphing eqn 3 yields in the conduct wrap shown belowSince the demand curve is sloping down , this is a characteristic of a noncompetitive marketb . What is the profit maximising force siding and toll in head 20 if the income is 20000upper intimidate profit occurs when marginal revenue (MR ) equals marginal price (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 outflank 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 maximum ProfitATC TC (Qmax /Qmax Average ATC 136 .60 USDProUnit(Ib ,tb )-ATCProUnit 2440 .0-137ProUnit 2 ,303 .

40 USD Maximum Profit per unit2 ) You stool buy a pate that will make the cost functionTC2 (Q 40 3 Q 0 .012 Q2And the marginal cost functionMC2 (Q 3 0 .024 QGivenRor 15 needed Rate of Re tranceCa 7500 USD capn 5 turn of events of yearsi 2 annual regularize of outgrowth of income Expecting 2 amplification in income per yearGet annual electronic jamming value of incomeMR2 IPV Marginal tax revenue equals annual incomeMR2 4 ,416 .32 benefit 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 gauge to do to inprove the long term profitability of thea . in scruple 1 - Increase business every period to oppose maximizing outputb . in interview 2 - Increase the price of capital to increase profitPAGE...If you fate to get a plenteous essay, order it on our website: Orderessay

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