A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 - 5,000P + 25M Qs = 240,000 + 5,000P 2,000P1 where P is price, M is income, and P1 is Average variable cost is estimated to be AVC= 14 -0.008Q + 0.000002Q2 to be $10,000 instead. What will the firm's profit (loss) be? e price of a key input. The forecasts for the next year are M = $15,000 and P1 = $20. Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted zero $2,500 -$3,550 -$2,860 -$6,000 A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 - 5,000P + 25M Qs = 240,000 + 5,000P 2,000P1 where P is price, M is income, and P1 is Average variable cost is estimated to be AVC= 14 -0.008Q + 0.000002Q2 to be $10,000 instead. What will the firm's profit (loss) be? e price of a key input. The forecasts for the next year are M = $15,000 and P1 = $20. Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted zero $2,500 -$3,550 -$2,860 -$6,000
Expert Answer:
Answer rating: 100% (QA)
The profit loss will be 2860 The demand equation is Qd 25000 5000P 25M Substituting in the given val... View the full answer
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson , John D. Stowe, Abby Cohen
Posted Date:
Students also viewed these economics questions
-
5. Merger analysis - Free cash flow to equity (FCFE) approach Consider the following acquisition data regarding Wellington Industries and Orator Telecom Inc. : Wellington Industries is considering an...
-
The free cash flow to the firm is closest to A. $23,031,000. B. $25,441,000. C. $36,091,000. Alan Chin, the chief executive officer of Thunder Corporation, has asked his chief financial officer,...
-
What is the difference between free cash flow to equity and net income?
-
What is your perspective on changes in cultural ideals for the female body from that of Marilyn Monroe in the 1950s to top models today?
-
The rules of conduct of professional accountants require them to report a breach of the rules of conduct by a member to their professions disciplinary body. What should they do before making such a...
-
Based on facts in each scenario, recommend the most appropriate audit strategy (combined or substantive). Scenario Strategy Big Bank is a multinational bank that operates across the globe. Each day,...
-
4. ETHICS On November 5, The Fred Hawes Organization, Inc., a small subcontractor, opened an account with Basic Distribution Corp., a supplier of construction materials. Hawes promised to pay its...
-
The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the...
-
EX13-3 (Algo) Given the following project network... Given the following project network and baseline information below, complete the form to develop a status report for the project at the end of...
-
In order to determine if the time spent on Instagram, Facebook, Twitter, or any social media platform is related to the lack of sleep-in college students, a researcher will look at a sample of 10,000...
-
??????? Red Lions Corporation takes out a \( \$ 7.6 \) million short-term amortizing loan for ten months at \( 17.4 \% \) per annum. It makes monthly payments to pay off the loan. However, after...
-
In 20X2, Jacque's Gardening Supply acquired Glenn's Agricultural Center and recorded goodwill in the amount of $450,000. At the end of the 20X4 year, the net assets (including goodwill) of Glenn's...
-
what are the three SMART objectives for revital vitamins in India?
-
Statement of Comprehensive Income for the year ended 31 December 2023 Statement of Financial Position as at 31 December 2023 RM Sale Less: return outward Net Sale Cost of Goods Sold Opening inventory...
-
In the domain of smart grid optimization, how can mathematical optimization models be employed to optimize energy generation, distribution, and consumption patterns, while considering factors such as...
-
1.What do you mean by Singular and non singular matrix. 2. Evaluate determinant of matrix -25 17 15 10
-
[The following information applies to the questions displayed below.] The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations. June 12, 2021...
-
Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years. If they can earn 8 percent annually on their funds, how much do they need to save annually?
-
Shunichi Kobayashi is valuing United Parcel Service (NYSE: UPS). Kobayashi has made the following assumptions: Book value per share is estimated at $ 9.62 on 31 December 2007. EPS will be 22 percent...
-
The estimated betas for AOL Time Warner (NYSE: AOL), J.P. Morgan Chase & Company (NYSE: JPM), and The Boeing Company (NYSE: BA) are 2.50, 1.50, and 0.80, respectively. The risk - free rate of return...
-
In the first approach, what proportion of the total value of the stock is represented by the value of the second stage? A. 0.10 B. 0.52 C. 0.90 Assorted Fund, a UK - based globally diversified equity...
-
Calculate the present value of the following cash flows discounted at 10 percent. a. \($1,000\) received seven years from today. b. \($2,000\) received one year from today. c. \($500\) received eight...
-
You have won the Florida state lottery. Lottery officials offer you the choice of the following alternative payouts: Which alternative should you choose if the discount rate is: a. 0 percent? b. 10...
-
You are selling your house. The Smiths have offered you \($115,000.\) They will pay you immediately. The Joneses have offered you \($150,000,\) but they cannot pay you until three years from today....
Study smarter with the SolutionInn App