Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Assignment 1. Ville Furniture makes rocking chairs and sells them under conditions of monopolistic competition. The owner of the company has estimated its demand function
Assignment
1. Ville Furniture makes rocking chairs and sells them under conditions of monopolistic competition. The owner of the company has estimated its demand function as p = 18 - 0.2q, where p is in dollars and q represents the number of chairs sold per month. The company believes its monthly expenses vary with output according to the equation:
TC = 320 - 2q + 0.05q2
- What is the marginal revenue function? What is the marginal cost function?
- Determine the firm's short-run profit-maximizing price and output rate (please show your work).
- Calculate total cost and total revenue at the profit maximizing price and output rate. How much profit will the firm earn at the profit maximizing price and output rate?
- SupposeVille's total fixed costs rise by 10%. Calculate the impact upon the firm's price, output and profits. How do you account for these results?
2. A US company sells industrial steel to both South Korea and Canada. Their economic division estimates the markets for these countries as given below
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668a8b0eaffd8_598668a8b0e9e07a.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started