Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given the following data for your firm, which sells a patented super-absorbent cleaning towel for use in large retail complexes (called One Wring

You are given the following data for your firm, which sells a patented super-absorbent cleaning towel for use in large retail complexes (called "One Wring to Rule the Mall" ).

Q P TC
0 $160 $3,000
10 $152 $3,630
20 $144 $3,990
30 $136 $4,170
40 $128 $4,260
50 $120 $4,350
60 $112 $4,530
70 $104 $4,890
80 $96 $5,520
90 $88 $6,510
100 $80 $7,950

a. Determine equations for

1-P=f(Q)

2-MR=f(Q),

3-ATC=f(Q, Q2)

4-AVC=f(Q, Q2)

5- MC=f(Q, Q2).

Recall that your marginal equations should be derivatives of your totals!

b. Determine the profit-maximizing price and quantity. (Since MC is in terms of Q2, solving with calculus and algebra can be messy unless you know the quadratic formula. Your table should give an exact answer.)

Please include table for reference-

c. How much total profit would your firm earn if you set P and Q according to part b?

d. Describe the competitiveness of the market by calculating the Lerner index.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Data Analytics For Accounting

Authors: Vernon Richardson

2nd Edition

1260904334, 9781260904338

More Books

Students also viewed these Economics questions