October 1, 2020
###### The wage in Mexico is \$5. The wage in the United States is \$20. Given current employment, the marginal product of the last worker in Mexico is 100, ….
October 1, 2020

You work as a market analyst for your company. You estimated using the regression method the demand function of

the company’s product and you obtained the following.

#### How many pages is this assigment?

Q = 8,400 – 10 P + 5 A + 4 Px + 0.05 M,

Where:

Q = Quantity demanded

P = Price = 1,000

A = Advertising expenditures, in thousands = 40

PX = price of competitor’s good = 800

M = average monthly consumer income = 4,000

a.  Calculate the elasticity for each variable and briefly comment on what information this gives you in each case.

b. Is the company maximizing its revenue. If not, what is the profit maximizing price.

a ) Q = 8400 – 10 p + 54 + 4 Px +0,05M= 8400 – 10. 1000 + 5. 40 + 4.800 +0,05. 4200 = 2000ep =29 1 – -10. 10003600- OP Q2000402A Q2000epx2Q Px – 4. 8002 Px Q2000=46em2Q MQ-= 0of….