22 Jul DETERMINE DELTA COMPANYS PROFIT MAXIMIZING OUTPUT
Suppose the Delta Company a fine producer of widgets has hired you as a consultant. The cost dema Show more Suppose the Delta Company a fine producer of widgets has hired you as a consultant. The cost demand and revenue functions have been determined By Delta and given below. The total amount of widgets sold in the market by all producers including Deltas sales is 238 units. Deltas current price is $80 with sales of 10 units which gives Delta a market share of approximately 0.04201 or 4.201%. You have been asked to answer the following questions part A and B. P=$100-2Q Demand for Deltas Widgets TC=Q2+2Q+100 A) Determine Delta Companys output that minimizes cost per unit (ATC) the optimal price at this output and level of profits. Be sure to show whether your solution is a maximum or a minimum. (5 points each) B) Determine Delta Companys profit maximizing output (round output to a whole number) the optimal price at this output and level of profits. Be sure to show whether your solution is a maximum or a minimum.10. (5 points each) C) If Delta wants to increase their market share to .05 or 5% what price and level of output will achieve this goal assuming that the rest of the industrys sales do not change. At this new price and output calculate Deltas profit. Note: When you are asked to forecast a quantity resulting from a change in a variable you may use the definition of elasticity the easy method to derive the forecast for all problems. Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.