pes of beers, Dark-ale and Light-ale daily ith a to que beer Br very produces 2 function given by TC = 8D + DXL +3L where D is the quantity of Dark-ale beer (in kegs) (not kg), and L is the quantity of Light-ale beer (in kegs) The prices that can be charged are determined by supply and demand forces and are influenced by the quantities of each type according to the following equations: PD=53-D + L for the price $/keg for Dark-ale beer PL= = 42 + 2D - L for the price $/keg for Light-ale beer The total revenue is given by the equation: TR = PD X D + P₁ X L And the profit given by the equation: Profit = TR - TC (a) Write down the profit in terms of D and L only. (b) The total production (quantity) of both beers combined is restricted to 191 kegs. Formulate th

pes of beers, Dark-ale and Light-ale daily ith a to que beer Br very produces 2 function given by TC = 8D + DXL +3L where D is the quantity of Dark-ale beer (in kegs) (not kg), and L is the quantity of Light-ale beer (in kegs) The prices that can be charged are determined by supply and demand forces and are influenced by the quantities of each type according to the following equations: PD=53-D + L for the price $/keg for Dark-ale beer PL= = 42 + 2D - L for the price $/keg for Light-ale beer The total revenue is given by the equation: TR = PD X D + P₁ X L And the profit given by the equation: Profit = TR - TC (a) Write down the profit in terms of D and L only. (b) The total production (quantity) of both beers combined is restricted to 191 kegs. Formulate th

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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When the price of a kettle increases from OMR 15 to OMR 20, the quantity demanded drops from 3550 units to 2500 units. Calculate the elasticity of demand and comment on the degree of elasticity. A hotel that produces 300 pizzas has a variable cost of OMR 100 and a fixed cost of OMR 150. Calculate the total cost, average total cost, average variable cost, and average fixed cost of the bakery.
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