Analytical Report

Running head: THE FIRST 50 CHARACTERS OF THE TITLE 1

Title of the Essay

Your Name

California Intercontinental University

Course Name

Professor’s Name

July 29, 2019

THE FIRST 50 CHARACTERS OF THE TITLE 2

Title of the Essay

Create an introductory paragraph. The essay should use APA 6th edition formatting and

contain proper in-text and parenthetical cites.

This is a Level 1 Heading

Text appears here.

This is a Level 2 Heading

The Level 2 heading denotes a subsection of the previous Level 1 heading and is an

excellent way to organize a paper. If you use a Level 2 heading, then you need at least two such

headings. If only one appears, then ask yourself whether you need the Level 2 heading.

The Level 3 heading. Level 3 headings indicate subsections of the Level 2 heading. If

you use a Level 3 heading, then you need at least two such headings. If only one appears, then

ask yourself whether you need the Level 3 heading.

Conclusion

The conclusion appears here.

Part II – Quantitative Analysis Solve the following problems and explain the results when prompted.

1. The manufacturer of high-quality flatbed scanners is trying to decide what price to set for its product. The

costs of production and the demand for product are assumed to be as follows:

TC = 500,000 + 0.85Q + 0.015 Q2 Q = 14,166 – 16.6P

a. Determine the short-run profit-maximizing price.

b. Plot this information on a graph showing AC, AVC, MC, P, and MR.

2. An amusement park, whose customer set is made up of two markets, adults, and children, has developed

demand schedules as follows:

Price($) Quantity

Adults Children

5 15 20

6 14 18

7 13 16

8 12 14

COMPREHENSIVE COMPETENCY ASSESSMENT II ESSAY 3

9 11 12

10 10 10

11 9 8

12 8 6

13 7 4

14 6 2

The marginal operating cost of each unit of quantity is $5. (Hint: Because marginal cost is a constant, so is average variable cost, Ignore fixed cost.). The owners of the amusement park want to maximize profits.

a. Calculate the price, quantity, and profit if

1. The amusement park charges a different price in each market

2. The amusement park charges the same price in the two markets combined.

3. Explain the difference in the profit realized under the two situations.

b. (Mathematical solution) The demand schedules presented in Problem 2 can be expressed in equation

form as follows (where subscript A refers to the adult market, subscript C to the market for children, and

subscript T to the markets combined)

QA = 20 – PA QC = 30 – 2PC QT = 50 – 3PT

Solve these equations for the maximum profit that the amusement park will attain when it charges different prices in the two markets and when it charges a single price for the combined market.

COMPREHENSIVE COMPETENCY ASSESSMENT II ESSAY 4

References

Waite, L. J., & Witsberger, F. K. (1986). Nonfamily living and the erosion of traditional family

orientations among young adults. American Sociological Review, 51(4), 541-554.