quantative exercises
Ghhfss-35-ssYour consulting firm was just granted an exclusive contract for your state. You now must decide your pricing policy, given the following relationships:
P = $1400 – 0.0004Q
MR = $1400 – 0.0008Q
AVC = $1000
where P is the price, Q the quantity, and AVC the average variable cost.
The firm will encounter no fixed costs, and all revenue is after taxes. As your firm has been granted an exclusive contract, your pricing and output decisions will be those of a monopolist.
Tasks:
- Using the data above, calculate the output the firm will provide.
- Determine the price at this output level.
- Complete the Microsoft Excel Template given below using the data in the problem.
- Check whether your data is consistent with your calculations in question 1. Why or why not?
- Now assume that the state decides to give as many contracts as it can for the same activity, so your firm is now operating in a perfectly competitive market. How will your price and output decisions change? Explain the differences and why these changes happened.
(Microsoft template attached)
Submission Details:
- Compile your calculations and graph in a Microsoft Excel spreadsheet and your analysis in a Microsoft Word document.
- 8 years ago
- 28
Answer(4)
Purchase the answer to view it
NOT RATED
- consulting_firm.doc
- consulting_firm.xlsx
Purchase the answer to view it
NOT RATED
- economic_intelligence.zip
Purchase the answer to view it
NOT RATED
- quantative_exercises.docx
- order_23988_59424.xlsx
Purchase the answer to view it
NOT RATED
- quantity_and_price.zip
Bids(1)
other Questions(10)
- Training Needs Analysis (TNA) paper
- report of intro engneering class design
- NSA was created to consolidate the various military SIGINT groups. What advantages do you see arising from this centralization? What problems do you think that it might engender, especially in SIGINT support to ongoing military operations?
- Personal Narrative Essay ASAP in 6 to 7 Hours
- Physics homework !!
- Dr. Leona Williams a well-known plastic surgeon has a reputation Answer
- Safety and Accident Prevention Unit 6 Essay 2
- Economic Tutor
- homework
- Prg 210 Week 4 Selection and Repetition Control Structures Paper