The Ali Baba Co. is the only supplier

The Ali Baba Co. is the only supplier

We Write Essays For Students

Tell us about your assignment and we will find the best writer for your paper

Write My Essay For Me

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 averabe variable cost function for Ali Baba’s carpet is AVC=200-0.012Q+0.000002 Q2 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 in order 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? d. Answer parts a through c if consumers’ income per capita is expected to be $30,000 instead.

Order a similar essay written from scratch and to your exact specifications