1. A monopolist produces two commodities that are substitutes and having demand functions: X-8-P+P and X=9+P-5P,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. A monopolist produces two commodities that are substitutes and having demand functions: X-8-P+P and X=9+P-5P, where 1,000 X, units of first commodity are demanded if its price is Rs P, per unit and 1,000X Units of the Second commodity are demanded if its price is Rs P, per units. It costs Rs 4 to produce each unit of the first commodity and Rs 2 to produces each unit of the second. Find the output levels and prices of the two commodities in order to have maximum profit. 1. A monopolist produces two commodities that are substitutes and having demand functions: X-8-P+P and X=9+P-5P, where 1,000 X, units of first commodity are demanded if its price is Rs P, per unit and 1,000X Units of the Second commodity are demanded if its price is Rs P, per units. It costs Rs 4 to produce each unit of the first commodity and Rs 2 to produces each unit of the second. Find the output levels and prices of the two commodities in order to have maximum profit.
Expert Answer:
Answer rating: 100% (QA)
To find the output levels and prices of the two commodities in order to have maximum profit we need ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Design a Java class that represents a cache with a fixed size. It should support operations like add, retrieve, and remove, and it should evict the least recently used item when it reaches capacity.
-
can someone solve this Modern workstations typically have memory systems that incorporate two or three levels of caching. Explain why they are designed like this. [4 marks] In order to investigate...
-
A 63.0-F capacitor is connected to a generator operating at a low frequency. The rms voltage of the generator is 4.00 V and is constant. A fuse in series with the capacitor has negligible resistance...
-
What aspects of person-administered surveys make them attractive to marketing researchers? What aspects make them unattractive?
-
Schock, the buyer, negotiated to purchase a mobile home that was owned by and located on the sellers property. On April 15, 1985, Schock appeared at the Ronderos (the sellers) home and paid them the...
-
A wire bent into a semicircle of radius \(R\) lies in a plane that is perpendicular to a uniform external magnetic field \(\vec{B}\). If the wire carries a current \(I\), what are the magnitude and...
-
Access the February 19, 2010, filing of the December 31, 2009, 10-K report of The Hershey Company (ticker HSY) at www.sec.gov and complete the following requirements. Required Compute or identify the...
-
11. 12. The product formed in the first step of the reaction of Br CH3-CH2-CH-CH2-CH-CH3 with excess Mg/ Et2O (Et = C2H5) is: Br (A) CH3-CH2-CH-CH2-CH-CH3 H3C-CH-CH2-CH-CH2-CH3 CH2 (B) CH3-CH CH-CH3...
-
Write the complete procedure with drawing and T-s diagram of two spool turbojet with afterburner.
-
How would you characterize your personal organizational leadership skills? What are your aspirations from a developmental perspective? Where would you like to see your career head and what steps can...
-
Net income Interest expense FISC Year 3 Fiscal Year 2 $138,400 $71,300 2,800 10,600 Total assets (at end of fiscal year) Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total stockholders' equity (at end...
-
Consider two groups of people, A and B. Group B is disadvantaged on average and faces many barriers to getting into college and completing a degree. Because of this, even though A and B both learn...
-
Vectors A, B, and C have the given components. Ax = 3.0 Ay = 7.0 Bx = 2.0 By = -3.0 Cx = 6.0 Cy = 6.0 Find the components of the combinations of these vectors. (A+B) = (A-3.0C) - (A+B), = (A-3.0C), =...
-
2 students need to write a paper for a class that they're taking. The paper is either "good", in which case each student gets a payoff of 20, or "not good", where each student gets 0. Each student...
-
This memo is to inform you of the tax consequences of the items brought out by the CRA reassessment. The reassessment has raised the following Issues: (I) Is the bonus declared in 2007 deductible for...
-
Below is a sample of the data in the file NFLAttendance which contains the 32 teams in the National Football League, their conference affiliation, their division, and their average home attendance....
-
Multiple Choice Questions Use the accompanying diagram to answer questions 12. 1. Which of the demand curves represents a long-run equilibrium for the firm? a. D0 b. D1 c. D2 d. D3 2. Which of the...
-
True or False: 1. Expansionary U.S. fiscal policy will tend to move funds out of the United States. 2. Expansionary fiscal policy will tend to be partly crowded out by a reduction in net exports. 3....
-
Why is the private ownership of the Federal Reserve System essentially meaningless?
-
Depository institutions have been losing their advantage over other financial intermediaries in attracting customers funds. Why?
-
In the aftermath of the financial crisis of 20072009, there were calls to reinstate the separation of commercial and investment banking activities that was removed with the repeal of the...
-
The globalization of banking has led to the need for global benchmarks for interest rates. In light of the LIBOR scandal, what characteristic do you think is most central to any new interest rate...
Study smarter with the SolutionInn App