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A company is considering building a bridge across a river. The …
A company is consering building a brge across a river. The brge would cost $2 million to build and nothing to maintain. The following table shows the …
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Answer to Question #216942 in Microeconomics for thuy
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a. If the company were to build the bridge, what would be its …
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The profit-maximizing price would be where revenue is maximized, which will occur wheremarginal revenue equals zero, since marginal cost equals zero.This occurs …
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Answer in Microeconomics for thuy #216942
a company is considering building a bridge across a river. the bridge would cost $1.5 million to build and nothing to maintain. the following table shows the company’s anticipated demand over the lifetime of the bridge:
price per cross: $8,$7,$6,$5,$4,$3,$2,$1,$0
number of crossing in thousand: 0,100,200,300,400,500,600,700,800
a.if the company were to build the bridge, what would be its profit-maximizing price? would that be the efficient level of output? why or why not?
b.if the company is interested in maximizing profit, should it build the bridge? what would be its profit or loss?
c.if the government were to build the bridge, what price should it charge?
d.should be government build the bridge? explain
Top 36 A Company Is Considering Building A Bridge Across A River The 154 Detailed Answer
A company is considering building a bridge across a river. The bridge would cost $2 million to build
A company is considering building a bridge across a river. The bridge would cost $2 million to build
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company’s anticipated demand over the lifetime of the bridge: |Price Per Crossing |Number of Cross | Study.com
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Summary of article content: Articles about A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company’s anticipated demand over the lifetime of the bridge: |Price Per Crossing |Number of Cross | Study.com Answer to: A company is consering building a brge across a river. The brge would cost $2 million to build and nothing to maintain. …
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Question
Profit-Maximization
Answer and Explanation
1
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company’s anticipated demand over the lifetime of the bridge: |Price Per Crossing |Number of Cross | Study.com
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Answer in Microeconomics for thuy #216942
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Answer in Microeconomics for thuy #216942
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a company is considering building a bridge across a river
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a company is considering building a bridge across a river
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1 Problems and Applications Q4
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A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company’s anticipated demand over the lifeti
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company’s anticipated demand over the lifetime of the bridge: Price Per Crossing Number of Crossings, in Thousands $8 0 $7 100 $6 200 $5 300 $4 400 $3 500 $2 600 $1 700 $0 800 a. If the company were to build the bridge, what would be its profit-maximizing price? Would that be the efficient level of output? Why or why not? b. If the company is interested in maximizing profit, should it build the bridge? What would be its profit or loss? c. If the government were to build the bridge, what price should it charge? d. Should the government build the bridge? Explain.
Answer in Microeconomics for thuy #216942
a company is considering building a bridge across a river. the bridge would cost $1.5 million to build and nothing to maintain. the following table shows the company’s anticipated demand over the lifetime of the bridge: price per cross: $8,$7,$6,$5,$4,$3,$2,$1,$0 number of crossing in thousand: 0,100,200,300,400,500,600,700,800 a.if the company were to build the bridge, what would be its profit-maximizing price? would that be the efficient level of output? why or why not? b.if the company is interested in maximizing profit, should it build the bridge? what would be its profit or loss? c.if the government were to build the bridge, what price should it charge? d.should be government build the bridge? explain
Answered: A company is considering building a…
Please tell me which of the multiple choice awnsers are correct for following questions.Please tell me only which ones are correct no explanation necessary 18 A firm selling ready meals discovers that the price elasticity of its product is -2.5 and the income elasticity of its product is 1.5. Given this information, which of the following statements are true? Select one or more: a. A 10% rise in consumer income will lead to a 1.5% rise in sales of its ready meals. b. A 5% rise in the price of its product will lead to a 12.5% fall in sales of its ready meals. c. A 4% fall in the price of its product will lead to a 10% fall in sales of its ready meals. d. A 6% rise in consumer income will lead to a 9.0% rise in sales of its ready meals. 19 Given a perfectly competitive firm, which of the following statements are true? Select one or more: a. In the long run, the firm can make profits greater than normal profit. b. Marginal revenue will be less than price. c. In the short…
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SOLVED:A company is considering building a bridge across a river. The bridge would cost 2 million to build and nothing to maintain. The following table shows the company’s anticipated demand over the
Video Transcript
Okay, guys, this is Chapter 15 problem for in this question were given this table and that a company’s considering building a bridge that would cost $2,000,000 up front and then cost nothing after that to maintain the first part of the question asks us What is the profit? Maximizing price. And so in order, Tio No, that right profit maximization occurs where marginal currents people’s marginal revenue. You know that marginal cost equals zero, so we need to calculate march them. To do that, we’re going to make this table. We have a price. We have a quantity, we have a total revenue, and then we have a marginal revenue and sand for a price of zero, we’re gonna have a quantity of 800. But total revenue of zero hope is his price turns nasty than a marginal revenue doesn’t exist. It’s not zero on the price of one. It’s 700. The total revenue is 700 the marshal revenue is 700. The price of two. The quantities 600 for total revenue of 1200 a marginal remedy of 500. At three, it’s 500 1503 100 war is 400 a total revenue of 1600 a marshal revenue of 100. And then it’s fine. We have a quantity of 300 a total revenue of 1511 of minus 100 and you should go on Philip arrest the table. But it’s not really relevant for the remainder of this question. We see that the marginal revenue is going to be somewhere between the price of four or five. But to keep the questions simple were going to say that the company would not charge of price of five because as marshal, every would be negative, which is less things marginal cost that was going to charge a price of four. There will be in price equals four quantity equals 400. But the second part of the question is what is the efficient level of out front? The efficient level of output is where the price is equal to the marginal cost, and we see that the marginal cost of zero to the efficient leveled out. It would be a pricey zero, and a quantity equals 800. The second part of his question, then, if the company’s profit maximizing shouldn’t build the bridge, and the answer is no. Now it shouldn’t. We know that if the profit maximizing is going to choose, a price equals four and a quantity equals 400. Which brings the total revenue is going to equal 1600 which is actually just one point 6,000,000 because quantities and hundreds of thousands, but remember that it cost the company $2,000,000 to build the bridge. And so when it’s maximizing profit if you’re coming out with a loss, so the companies should not build the brooms. The third part of the question asks us if the government were to build the bridge. What price should a charge on? So one of the reasons that government was sort of step for a monopoly is if you’re not giving the efficient level of output. And so the government were to build a version sort of the company. We would want the outcome to be video the efficient level of apple if you have so once the efficient output. Remember March costume zero. So want price to equal marginal costs, and so we would want political zero and keel equals 800 of the door and war. So and the last part of question is said than the government deliberating. This is really more of a normative question and a positive question meeting that it’s sort of up to your opinion, and there’s not really a bunch of math behind it. It depends on many factors, Right said. The short answer is, it depends. Um, is there going to be a large enough need for the bridge to justify the government’s cost and building the branch? Um, is the economic activity that will result from the bridge on? I’m enough to justify the cost of the bridge? Consider. You know, people from New Jersey or Delaware, Pennsylvania means to get to New York City, building the bridges across users into New York in the San Francisco Bay Area to go from the East Bay, Alameda huh Area Oakland area into San Francisco Is that increasing the number of workers to be able to get jobs and these big metropolitan areas? It’s not worth the cost of the bridge now, so this was quite a question for of Chapter 15
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