3033test3smpl - Sample Problems for Exam 3 ECO 3033 ME...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Sample Problems for Exam 3 ECO 3033 ME. 6%.” Problem A. Metalicca Corp. shreds scrap steel and sells it in tw the domestic market and the Far East market. The demand functions for weekly sales quantity in the two markets are: (domestic) od - 9.500 - sopd fl/r /9o -, 092? (Far East) Of - 10.200 - 4on ,0 _-_- gag-“0.15- dfide The above quantities are in tons, and rices do not in freight. The firm's total cost can be function: o markets, represented by the TC - 150(000 + 400, where Q is the tonnage sold in the two markets. .476: 9‘0 1. what two economic conditions must hold to gain from price disorimination? l, WMéafWW. é, /c:(/ a gywflem 4%., Assuming the firm practices price discrimination, what will be its price per unit in each of the two markets. of product will it sell be its total profit? /?0 ",Wépég : yo} Q6€rg7__&9___ @6164; combined weekly for the firm to be able 2. how many tons per week in each market, and what will amtfowfeo ; 45f=§§£ fig = 512,55 3. Calculate the firm’s total profit. " 7??” 442/, 250 +43% 2523 #540290 ~232pr = {95; secs ECO' 3033 Egoblem E. % Cowpoke Joe's, Inc. is a small firm in Houston that produces Rodeo T-shirts. Its wholly-owned subsidiary, Corona Graphics, is located in Crystal City and specializes in printing designs on T-shirts by the silk screen method. The market for this type of printing is perfectly competitive, and the going price for printing a shirt is $1.35. Corona Graphics is permitted to do subcontract work for other manufacturers of T-shirts. Cowpoke Joe's estimates its monthly total cost of production of shirts (up; including the printing) to be represented by the equation below: TCS -= 10,000 + 0.25QEs + 0.0010:l 53575621??? where QS is the number of shirts produced._ Meanwhile. the monthly total cost function of Corona Graphics is: MC =.rs’+.ooa¢ a» q”? 2 T w 5 0.15 0.00 3 , Cg 00 + 09+ cog where 09 is the number of shirts printed. If the demand curve facing Cowpoke Joe's for the T-shirts is as = 3,000 - 50093: g: /C".002Qr (a) How many shirts should Cowpoke Joe's sell? MM; : /¢ -. OwaS— maize: I: Afx-"flGGCP; '-" A35 ,wccgf: mm Qrisoo FF:- {b) What price should they charge per shirt? f§?:7 /§;-:c3cLQ <E$QQQ%D:= {flrozdl (c) How much silk-screen printing should Corona Graphics d0? ./S"—(~ooe Q? ‘73:? (d) Should Corona graphics do printing for other firms? If so, how much? If not, how much printing will Cowpoke Joe's have to buy elsewhere? (QM’Q, aqw’m: "(0:0 W, (e) what will be the total profit of the two—unit firm? firr’JC/WO e(qm~Qoo-§740_3qu : 7&820 A : Q7630 "900*300 “4200 =- Coo a 35+? = 2% ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern