Determine the market demand and supply

Question

Assignment:

Consider the following benefit and cost functions: B(X) = 600X -12Xz and C(X) = 20Xz. Use this information to answer the following questions.

a. What are the MB and the MC?

b. What level of X maximizes the net benefit?

c. What is the net benefit (NB)?

Please include the letter with each part of your answer (a, b, c).

Quarterly demand and supply for the Petram Company is given by Q_d = 1000 + 0.5M + 0.25A - 100P and Q_s = -750 + 100P, where Q is quantity per quarter, P is price, M is income, and A is advertising expenditure. Suppose that A = 1000 and M =20,000, and answer the following questions.

a. What is the equilibrium price and quantity?

b. What is the inverse demand?

Please include the letter with each part of your answer (a, b).

Consider the benefit and cost of Mr. T's Coffee Shop, which are indicated by the following: B(Q) = 50 + 18Q - 2Qz and C(Q) = 40 + 6Q. Use this information to answer the following questions.

a. What is the marginal benefit, represented by MB(Q)?

b. What is the marginal cost, represented by MC(Q)?

c. At what level of output is the net benefit maximized?

Please include the letter with each part of your answer (a, b, c).

Consider the market demand and supply given by the following: Q_d = 50 - P and Qs = 2.5 + 1.5P. Use this information to answer the following questions.

a. What is the equilibrium price and quantity?

b. If the government sets a price floor of $25, what is the surplus/shortage? If the government buys the surplus, what would be the cost to the government?

Please include the letter for each part of your answer (a, b).

Consider that the C & A Lawnmower Firm operates in a highly competitive industry. The MB(Q) = 100, which means that the price of each service is $100. The estimate for the total cost is given by C(Q) = 100,000 + 20Q + 0.1Q2. Use this information to answer the following questions.

a. What is net benefit maximizing level of output?

b. What is the total benefit function?

c. What is the maximum net benefit?

Please include the letter with each part of your answer (a, b, c).