[fyboen]

Hi,

First of all, sorry for any mistakes in this thread. English is not my first language, so I'm sure there will be a few mistakes in here somewhere.

Regarding my issue, then i've received following question, and i've spent several hours on it but i cant find any conclusive result. Maybe you guys can help?

Assume that a monopolist considering to spend 500.000 usd on large campaign to promote the their products.
The demand curves are defined by
p = 150 - 3q, where q is the output-quantity in 1000-usd. By executing the campaign the firm expects the new demand-curves to be
p = 400 - 4q.
Their total cost are c(q) = 30q, and the 500.000 usd are not included in this.

a) If the expectations regarding the demand-curves are correct, is it beneficial for the company to do the campaign?
b) What is the maximum amount the company is willing to in their campaign?

Thank you for your help.
-T

[Coursework.info]

It's been a while since you posted and nobody's replied yet...maybe you should check out MarkedbyTeachers.com, TSR's sister site. It has the largest library of essays in the UK.

They've got over 181,000+ coursework, essays, homeworks etc.. all written by GCSE, A Level, University and IB students across all topics. You get access either by publishing some of your own work, or paying £4.99 for a month's access. Both ways give you unlimited access to all of the essays.

All their documents are submitted to Turnitin anti-plagiarism software, so it can't be misused, and the site's used by hundreds of thousands of UK teachers and students.

What's more, you can take a look around the site and preview the work absolutely free. Click here to find out more...