# Where Qd denotes quantity demanded, P denotes price, Y denotes personal income

**prince2014.slg**

Ajax, Inc. is a monopolist. The estimated demand function for its product is

Q_{d} = 120 – 0.8P + 12Y + 4A

Where Q_{d} denotes quantity demanded, P denotes price, Y denotes personal income (in thousands of dollars), and A denotes advertising expenditures in hundreds of dollars.

Ajax’s marginal cost function is given as

MC = 21 + 4Q

Assume Y equals 3 and A equals 3 and fixed costs equal $1000**a. What is the inverse demand function? (The equation demand equation in the form P = a – b Q**

_{d}

**)?**

**b. What is the profit maximizing price and quantity of output for Ajax, assuming it is an unregulated monopoly? What are its profits?**

**c. If fixed costs increase to $1200, what will happen to equilibrium price and quantity?**

- 7 years ago
- 10

**Answer(2)**

Purchase the answer to view it

- ajax.doc

Purchase the answer to view it

- answer.pdf

**Bids(0)**

**other Questions(10)**

- Chemistry of hazardous material
- geography homework help..
- Accounting Help - 3
- Eth125 Appendix C Leaders and Legislation of the Civil Rights and Black Power Movements
- which is a function of ATP in muscle contraction
- Help with my online statistics/probability homework!
- (4^(2/3)*5^(3/4))^(3)
- Computer Science Help. Need the homework to be done !!!
- What is the total pressure in atm exerted by a mixture of oxygen and hydrogen gases if the pressure of...
- Writing Hw3

### Ajax, Inc. is a monopolist. The estimated demand function for its product is Qd = 120 – 0.8P + 12Y + 4A

NOT RATED**Ajax, Inc. is a monopolist. The estimated demand function for its product is**

Q_{d}= 120 – 0.8P + 12Y + 4A

Where Q_{d}denotes quantity demanded, P denotes price, Y denotes personal income (in thousands …6 years ago

**Tips(0)**

**Udemy(0)**