firm’s profit-maximizing

Explain why in each answer.

1. Suppose a firm’s profit is given by

the equation p = -200 + 80Q – .2Q2. Which of the following is true?

a) The firm’s marginal profit is given by the equation: Mp = 80 – .2Q.

b) The firm’s profit-maximizing output is Q = 400.

c) The firm’s profit-maximizing output is Q = 200.

d) The firm’s marginal profit is given by the equation: Mp = 80 – 2Q.

e) The firm’s profit-maximizing output is Q = 800.

2. A firm’s total cost function is given by: C = 1,000 + 15Q. At an output of 200 units,

a) Total cost is $4,000 and marginal cost is $3,000.

b) Total cost is $3,000 and fixed cost is $1,000.

c) Total cost is $4,000 and marginal cost is 15.

d) Average total cost is constant.

e) Answers c and d are both correct.

3. A small liberal arts college is trying to predict enrollment for the next academic year. The vice president for business states that enrollment has tended to follow a pattern described by E = 18,000 – .5P, where E denotes total enrollment and P is yearly tuition.

a)   If the school sets tuition at $20,000, how many students can it expect to enroll?

b)   If the school seeks to enroll 6,000 students, what tuition should it charge?

c)    If the school wants to maximize total tuition revenue, what tuition should it charge?

d)   As the vice president for business, what tuition would you recommend? Why?

4. University of Notre Dame is a premier institution that draws students from all over the world to its campus. Although it is privately funded, it aspires to world-class quality and reputation, which are enhanced when out-of-state residents enroll. Data suggest that in-state enrollment can be described by the equation:

QI = 25,000 – PI,

where QI = in-state enrollment and PI = in-state tuition. Out-of-state enrollment is given

by:                                        QN = 13,500 – .5PN.

a.              If tuition for in-state students is $14,000 and for out-of-state students is $19,000, what is total enrollment and demand elasticity for each type of student?

b.              Suppose that the marginal cost to the university of an additional student is $7,000. Is Major University maximizing profit at its current tuition charges? Explain.

c.              Because of major funding cuts, the university is expecting to reduce its total enrollment to 11,000 students next year. The university is free to set any tuition charges it wishes. If the goal is to maximize total tuition revenue, what should in-state tuition, out-of-state tuition, and respective enrollments be?


Calculate the price of your order

Simple Order Process

Fill in the Order Form

Share all the assignment information. Including the instructions, provided reading materials, grading rubric, number of pages, the required formatting, deadline, and your academic level. Provide any information and announcements shared by the professor. Choose your preferred writer if you have one.

Get Your Order Assigned

Once we receive your order form, we will select the best writer from our pool of experts to fit your assignment.

Share More Data if Needed

You will receive a confirmation email when a writer has been assigned your task. The writer may contact you if they need any additional information or clarifications regarding your task

Let Our Essay Writer Do Their Job

Once you entrust us with your academic task, our skilled writers embark on creating your paper entirely from the ground up. Through rigorous research and unwavering commitment to your guidelines, our experts meticulously craft every aspect of your paper. Our process ensures that your essay is not only original but also aligned with your specific requirements, making certain that the final piece surpasses your expectations.

Quality Checks and Proofreading

Upon the completion of your paper, it undergoes a meticulous review by our dedicated Quality and Proofreading department. This crucial step ensures not only the originality of the content but also its alignment with the highest academic standards. Our seasoned experts conduct thorough checks, meticulously examining every facet of your paper, including grammar, structure, coherence, and proper citation. This comprehensive review process guarantees that the final product you receive not only meets our stringent quality benchmarks but also reflects your dedication to academic excellence.

Review and Download the Final Draft

If you find that any part of the paper does not meet the initial instructions, send it back to us with your feedback, and we will make the necessary adjustments.