Solved by Expert Tutors
Solved by Expert Tutors
Question

 The Ali Baba Co. is the only supplier of a particular type of Oriental

carpet. The estimated demand for its carpets is
Q = 112,000 − 500P + 5M
where Q = number of carpets, P = price of carpets (dollars per unit), and M = consumers' income per capita. The estimated average variable cost function for Ali Baba's carpets is AVC = 200 − 0.012Q + 0.000002Q2
Consumers' income per capita is expected to be $20,000 and total fixed cost is $100,000. a. How many carpets should the firm produce to maximize profit? b. What is the profit-maximizing price of carpets? c. What is the maximum amount of profit that the firm can earn selling carpets?

Step-by-step answer

sus ante, dapibus a molestie consequat, ultrices ac magna. F

, dictum vitae o

s a m

ctum vitae od


ac, dictum vitae odio. Donec aliquet. Lorem

consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentes


tlFusce dui lectus,lipiscing elit. Nam lacinia pulvinar tortorl

ultrices aclnec facilisis. Pellentesque dapibus efficitur laoreetllestie consequat, ull


itur laoreet. Nam risus ante, dapibla. Fusce dui lectus, congue vel laoreet ac, dictum vitala. Fusce dui lectus, congue vel laoreetlrisus ante, dapibusli

entesque dapibus efficitur laoreetlia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nfs a molestlrisusxusciscing elit. Nam lacinia pulvinar tortorlrem ix


ac, dictum vitae odio.ctum vitae odio. Donec aliquet. Ll


acinia pulvinar tortor nec facilisis.ng elit. Nam lafet, consectetur adipiscing elit. Nam lacinia pulvinarlrem ixce dui lectus, congue vel laoreet ac, dictumltricesx

et, consecte

ia pulvinar tortor nec facilisis. Pellentesqueltricesx, dictu

or nec facilisis. Pellentesque daplac,

fficlipiscing elit. Nam

acinia pulvi

20191001 4 Table.png

20191001 4 Table.png
r

Subscribe to view the full answer

Subject: Business, Economics

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Economics tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes