View Submission _ Gradescope2

9) A competitive firm's production function is f(x1, x2) = 12x/2+ 4x. The price of factor 1 is S2 and the price of factor 2 is $2. The price of output is $6. What is the profit-maximizing quantity of output? %3D

13. Suppose the total cost of producing x units of a certain commodity is given by C(x) = 100x + 15,000. The revenue function R is given by R(x) =-0.02x +300x a). Find the profit function. b). Find the marginal profit function. c). Find the actual (marginal) profit from the sale of the 1001st product. %3D %3D

A particular computing company finds that its weekly profit, in dollars, from the production and sale of x laptop computers is P(x) = -0.006x³ -0.3x² +600x-800. Currently the company builds and sells 7 laptops weekly a) What is the current weekly profit? b) How much profit would be lost if production and sales dropped to 6 laptops weekly? c) What is the marginal profit when x = 7? d) Use the answer from part (a) and (c) to estimate the profit resulting from the production and sale of 8 laptops weekly a) The current weekly profit is $ (Round to the nearest cent as needed) b) The decrease in profit is $ (Round to the nearest cent as needed.) c) The marginal profit when x=7 is $ (Round to the nearest cent as needed) CLOT d) The profit resulting from the production and sale of 8 laptops weekly is approximately $ (Round to the nearest cent as needed)

1/3 1/3 Assume y = f(x1, x2) = x1 x2 . If the input prices are w₁ and w₂ what is profit maximizing y level of output? What is the profit?

10) If marginal revenue equals marginal cost, the firm is maximizing profits as long as A) the average cost curve lies above the demand curve. B) the resulting profits are positive. C) marginal cost exceeds marginal revenue for greater levels of output. D) All of the above are required. $1q 15 1110 40 MC AC AVC q I= H 11) The above figure shows the cost curves for a competitive firm. If the firm is to earn economic

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $68,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? The marginal revenue product of capital? b. What is the ratio of the marginal revenue product of labor to the price of labor (MRP ✓ ÷ PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP C÷ PC)? c. Is the firm using the least-costly combination of inputs? (Click to select) = d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent? (Click to select)

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $52,000 to $70,000. If he adds one more tractor, monthly revenue will increase from $52,000 to $64,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? The marginal revenue product of capital? b. What is the ratio of the marginal revenue product of labor to the price of labor (MRP /PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP OPd? %24

10

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $58,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month.   Instructions: Enter your answers as a whole number.   a. What is the marginal revenue product of labor?        $         The marginal revenue product of capital?        $    b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? :      What is the ratio of the marginal revenue product of capital to the price of capital (MRPC/PC)? :

markscheme says answer is d but i think it might be an error so want to ask experts

If a Prof leaves their $100,000 per year job to start a business that earns annual revenue $400,000, and has annual labor and rental costs of $200,000, the economic profit of the business is $200,000.

7. Assume that the marginal cost curve is given by mc(q) = 100 + 2q. (a) If the price is $160, what is the optimal production for the firm? What if the price is $120? (ignore the shut-down decision for this part) (b) Assuming that the market is cleared at $160 (no shortage/surplus). If the market demand is equal to 10,000 units of the product. How many firms are currently operating (n) in the market? (Hint: if the market clears qª = n x q°) (c) If the total cost curve is TC 256 + 100g + q², what's the average total cost curve? %3| what's the break-even price? (d) If the demand curve is given by qd = 8, 452 – p, what's the long-run equilibrium price, the equilibrium quantity and the long-run total number of firms (n) in the industry?

Suppose that the firm with the costs and revenues shown in the graph below is contemplating whether or not to produce 12 units of output. If it were to produce this many units, what (if anything) would happen to the market price? What would be the firm's marginal revenue for the 12th unit produced? What would be the firm's total revenues per hour? Price and Marginal Cost ($ per unit) $6 E MC 10 11 12 13 14 Output (units per hour) Answer: This firm is in relation to the industry as a whole that its production market price, which would , so its output rate is influence the $6 per unit. The market price the firm's marginal revenue, which therefore would be MR unit. The firm's hourly total revenues if it were to produce 12 units would be TR $72. + $6 per 4

Only typed answer

2. Consider the following information of a hypothetical firm: Q = 100K0.6 L0.8, w = = 1; r = 3 A. Solve for the cost-minimizing quantity of capital (K*) and labor (L*), and the minimum cost (C*) if the firm targets to produce 3,000 units of output. (10 pts) B. If target output increases to 6,000 units, solve for the new cost-minimizing quantity of capital and labor, and the minimum cost. (10 pts) C. Graphically illustrate the expansion path for the firm if it decides to increase its target output from 3,000 units to 6,000 units. (10 pts)

Suppose the firm achieves total revenue of $1,000 by selling 150 units while facing total costs of $900. If the firm produces and sells 151 units, its total revenue is $1,005, and its total costs are $950. Should the firm produce and sell the extra unit? Group of answer choices yes, since marginal profit is positive yes, since profits are positive no, since marginal profit is negative no, since marginal profit is positive     You have recently learned that the company where you work is being sold for $1,000,000. The company's income statement indicates next year's profits of $30,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and the interest rate will remain constant at 7%, at what (constant) rate does the owner believe that profits will grow? (Hint: the price the owner was willing to pay is the present value of the firm's future cash flows) Group of answer choices 6% 5% 4% 4.5%

Units of Resource 0 1 2 3 4 5 Total Product 0 10 18 24 28 30 Total Revenue ($) 0 30 54 72 84 90 Refer to the table. The marginal revenue product of the third unit of resource is Group of answer choices $4. $8. $18. $72.   A profit-maximizing firm will use additional units of resources for production until Group of answer choices total, average, and marginal cost are equal. total, average, and marginal revenue are equal. the marginal revenue product equals the marginal resource cost. the marginal revenue product is greater than the marginal resource cost.   The marginal revenue product of an input in a competitive market decreases as a firm increases the quantity of the input employed because of the Group of answer choices law of diminishing returns. law of diminishing marginal utility. homogeneity of the product. free mobility of resources.     Units of Resource 0 1 2 3 4 5 Total Product 0 6 11 15 18 20 Total Revenue ($) 0 36 55 60 54…

10. A firm uses two inputs to produce a single product. If its production function is Q = x¹/4y¹/4 and if it sells its output for a dollar a unit and buys each input for $4 dollars a unit, find its profit-maximizing input bundle. (Check the second order conditions.)

Please solve correctly

Nousaku estimates that the total daily revenue of producing q units of KAGO basket is (R(q) = (102 - (675/q+4) - q) thousand yen. What is the marginal revenue when output is 6? Interpret your answer.

1

11. Suppose that a firm that uses 2 inputs has the production function f(x₁, x₂) = 12xx² and faces the input prices (P1, P2) and the output price 1. Show that f is concave for ₁> 0 and x₂ > 0, so that the firm's profit function , defined by 7(71, 12) = f(x₁, x2) - P₁1 - p2r2, is concave.

Suppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for materials, $60 for equipment, and $40 for rent.  The market wage for the manager is $120 per day but the owner-manager does not draw a salary. Assume the daily revenue is $420. What is the economic profit for the firm described above?  Just give formula.

6. Each of the 10 firms has the production function q = √KL. The wage is 5 and the rent on capital is 10. Assume we are in the long run, so firms can vary both factors. Write an expression for one firm's cost minimization problem. Use whichever method you prefer to minimize cost and derive an expression for one firm's total cost: TC (9₁) c. Compute one firm's marginal cost and derive the inverse supply curve for one firm and the inverse supply curve for the market. What is the elasticity of supply? a. b.

. An  electricity  producer  has  a  constant  marginal  cost  of  production equal  to $40  per  megawatt.   The  residual  demand  for  its  electricity  is  given  by P (q) = a−bq, where P is the price and q is the quantity of power generated by this producer.  The producer knows the slope, b, but he vertical intercept of the residual demand curve, a is unknown.  Assume A and B are greater than zero.  If you get stuck,  you may answer any of the following questions for special case where a = 80 And b = 0.5 for partial credit.   (a)  What is the marginal revenue, M R(q), for this producer?   b) What is the optimal q for this producer?   (c)  What is the electricity producer’s optimal price?   (d) What is the electricity producer’s optimal bid in a uniform price Auction?   e) Suppose b is equal to zero. Would the producer have an incentive to submit a bid above its marginal cost?  Explain.

You run a firm using two rented machines, the cost of rent is 100 each. Wage per worker (L) is 200. The output table is as follows: L (workers) Q 0 0 11 4 10 14 2 3 4 5 6 17 Answer: 19 20 If the price is $67, how much is your profit?

3.

Need help with questions a, b, c, and d.

Question 15 (i) Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2 (ii) Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. Both firms aim to maximize profit and produce at P = MC.   A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2

Consider a firm in a competitive industry . The firm's average cost curve and marginal cost curve are depicted below . All firms in the market are identical . Suppose the market is in equilibrium , and the firm is currently losing $ 1.200 daily . Use the point tool to indicate the quantity / price point at which this firm must be producing .

On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results.   Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________.   Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.

2 - As a manager of a company operating in a competitive market, you estimated your company's production function as: Q= 10L - 0.5L2 If each worker is paid $16 per hour and your company has been selling the products for $8, how many workers should be employed to maximize the profits? a) 16 0138 b) 10 d) 18