Exercise(微经传说中的题库？).pptVIP

Exercises 1、A firm faces the following average revenue (demand) curve: P=120–0.02Q，where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C=60Q+25,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? b. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit? 2、Sal’s satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are QNY=60–0.25PNY, QLA =100–0.50PLA where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C =1000+40Q, where Q =QNY+QLA. a. What are the profit-maximizing prices and quantities for the New York and Los Angeles markets? b. If Sal can charge only a single price. What price should he charge, and what quantities will he sell in New York and Los Angeles? * Exercise Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 + 2q2, where q is the level of output and C is total cost a. If the price of watches is $100, how many watches should you produce to maximize profit? b. What will the profit level be? c. At what minimum price will the firm produce a positive output? * of 35 *