LICEO DE CAGAYAN UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

MANAGERIAL ECONOMICS

Submitted by:

JONESSA D. TOCALO
B.S. ACCOUNTANCY - 1

Submitted to:

MR. FLORANTE L. SABASAJE

Instructor

Date: OCTOBER 22, 2019

1. The research department estimates that the supply function for a high definition television (HDTV) is
given by: Qx=2,000 + 3Px – 4Pt- Pw
Where Px is the price of HDTVs, Pt represents the price of a tablet. PW is the price of an input used to
make HDTVs. Suppose HDTVs are sold for 400.00 per unit, tablets are sold for 250.00 per unit and the
price of an input is 1,400.00. how many HDTVs are produced?
Qx = 2,000 + 3Px – 4Pt – Pw
= 2,000 + 3(400) – 4(250) – 1,400
= 2,000 + 1,200 – 1,000 – 1,400
= 3,200 + 1,000 – 1,400
Qx = 800 HDTVs are produced.
2. Terry’s Lawn Service rents five small mowers and two large riding mowers to cut the lawns of
neighbourhood household. The marginal products of a small push mower is 3 lawns per day, and the
marginal product of a large riding mower is 6 lawns per day. The rental price of a small push mower is
10,000 per day, whereas the rental price of a large riding mower is 25.00 per day. Is Terry’s Lawn Service
utilizing small push mower and large riding mowers in a cost-minimization manner?

Yes, the significance of having the goal with the balance of manage time and proper budget is to make
sure that the use of resources or materials coincides to the satisfaction of the employees at the same
time the workplace they're in to. Through utilizing both options of mower, you can already mows at
least 9 lawns for only P180.00. It is one way of saving his cost by not sacrificing all his money to large
riding mower but instead he divided it to rent also small push mower.

3. Suppose the inverse demand function for a monopolistically competitive firm’ product is given by: P =
100 – 2Q and the cost function is given by: C(Q) = 5 + 2Q.
Determine the profit-maximizing price and quantity and the maximum profits.

P = 100- 2Q
C(Q) = 5 + 2Q

100 – 2Q = 5 + 2Q
100 – 5 = 2Q + 2Q
95 / 4 = 4Q / 4
Q = 23.8 is the profit-maximizing price and quantity

P = 100 – 2(23.😎 C(Q) = 5 + 2(23.😎

= 100 – 47.6 = 5 + 47.6
= 52.4 = 52.6 maximum profits