Economics

A firm with monoply power has the demand curve:
P = 100 - 3Q + 4A^1/2

And has the total cost function:
C = 4Q^2 + 10Q + A

where A is the level of advertising expenditures. P is price, Q is output.
How do I find the values of A, Q, and P that maximize the firm's profit?

  1. 👍
  2. 👎
  3. 👁
  1. I need the solution if this economics qaustion
    A firm with monoply power has the demand curve:
    P = 100 - 3Q + 4A^1/2

    And has the total cost function:
    C = 4Q^2 + 10Q + A

    where A is the level of advertising expenditures. P is price, Q is output.
    How do I find the values of A, Q, and P that maximize the firm's profit?

    1. 👍
    2. 👎
  2. give answer

    1. 👍
    2. 👎
  3. A = 4 Advertisement
    Q = 7 units
    P = 87 units

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    An industry currently has 100 firms, all of which have fixed costs of $16 and avg. variable cost as follows: Q Avg. Variable Cost ($) 1 1 2 2 3 3 4 4 5 5 6 6 a. Compute marginal cost and avg. total cost. b. the price is $10. what

  2. Economics

    Read the statement. Economists note that personal income rose by 5 percent last year. What impact will the change in personal income have on-demand? A. It will cause the demand curve to shift down. B. It will cause the demand

  3. Economics

    3. Suppose the Clean Springs Water Company has a monopoly on bottled water sales in California. If the price of tap water increases, what is the change in Clean Springs' profit-maximizing level of output, price, and profit?

  4. Economics

    you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If the firm is

  1. economics

    3. Suppose that the total monthly demand for golf services is given by Q = 20 – P The marginal cost to the firm of each golfer is $1. If this demand function is based on the individual demands of 10 golfers, what is the optimal

  2. microeconomics

    Market demand is given as QD = 200 – 3P. Market supply is given as QS = 2P + 100. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What quantity of output will a typical firm produce? a.10 b.20 c.30 d.40 Market demand is given

  3. Economics

    6. Show the effect of each of the following events on the market for labor in the computer manufacturing industry. Use graphs. a. Congress buys personal computers for all American college students. Wouldn't the demand curve shift

  4. Economic

    Suppose that labor is the only input used by a perfectly competitive firm that can hire workers for $50 per day. The firm’s production function is as follows: Days of Labor/Units of Output: 0/0, 1/7, 2/13, 3/19, 4/25, 5/28,

  1. economics

    This is going to be really long, but I want to see if my answers are correct. This is problem number 10.10 in my Intermediate Microeconomics book. A perfectly competitive painted necktie industry has a large number of potential

  2. Economics

    Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by: q = 60 - (1/2)p, where q is quantity sold per week. The firm's marginal cost curve is given by: MC = 60. 1. How much will the

  3. Economics

    Help me with this, please. Read the statement. Economists note that personal income rose by 5 percent last year. What impact will the change in personal income have on-demand? It will cause the demand curve to shift down. It will

  4. Economics

    When XYZ firm entered the market for good two years back, it kept the price of its product low to attract customers away from its leading competitor. The firm has now established itself and has a market share of 20 percent. The

You can view more similar questions or ask a new question.