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Student Resources Working at Clayton.... 3/3 practice Gigantic Pharmaceutical Corporation has a patent on a prescription drug, making it the only manufacturer of that prescription drug. Gigantic is currently earning a positive economic profit. (a) Draw a correctly labeled graph for Gigantic and show each of the following. (i) The profit-maximizing quantity, labeled QG (ii) The profit-maximizing price, labeled PG (iii) The average total cost curve, labeled ATC (iv) The area representing the consumer surplus, shaded completely (b) Suppose the demand for the prescription drug increases, and Gigantic hires its warehouse workers in a perfectly competitive labor market. (i) What will happen to Gigantic's demand for warehouse workers? Explain. (ii) What will happen to the wage rate Gigantic pays its warehouse workers and the number of warehouse workers it hires? (c) After Gigantic's patent expires, another firm enters the prescription drug market and produces an identical drug that sells for…

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The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. Instructions: Use the tool provided 'Profit/Loss' to illustrate the area of profit (or loss) that occurs at the profit-maximizing level of output. Drag the points to move or resize. Price/Cost $50 $40 $30 $20 $10 10 20 30 Quantity MC 40 P = MR ATC AVC 50 Instructions: Enter your answers as a whole number. The profit-maximizing level of output is Tools Pt. A units and profit is $ :! Profit/ Loss

80 60 70 10 MC1 00 60 50 Price and cost (dollars) 40 40 30 20 20 10 0 MC2 Demand 50 100 150 Quantity The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit? Multiple Choice • 10 to plant 1, 40 to plant 2 . 20 to plant 1, 30 to plant 2 . 40 to plant 1, 40 to plant 2 . 20 to plant 1, 60 to plant 2 20 to plant 1, 50 to plant 2 (Ctrl)

Given - p=35−0.5QTC=0.5Q2+5Q A)What is the profit function? Can it be maximized? B)What is profit maximizing quantity and price? C)What is the maximum possible profit? D)What are the break-even quantities? E)What quantity minimizes total cost? What is minimum total cost?

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

(b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p = 40−4q2where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (i) Write an equation giving profit as a function of the number of lightweight compasses produced. (ii) At the moment the company produces 2 million lightweight compasses and makes a profit of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit?

The fast answer is best . Thank you. Like like like.   The manufacturer of smart printers is trying to decide what price to set for its product. The  demand and cost function are assumed to be as follows: P = 80 -2Q TC= 160 +50Q-1.5Q ²a. What price should the company charge if it wants to maximize its profit in the short run? What is  the optimal quantity for the printer following this optimal price? b. What price should it charge if it wants to maximize its revenue in the short run? What is the optimal quantity for the printer under this price?  What will be the maximum revenue?

Question 1a A firm faces the following average revenue (demand) curve: P(Q) = 240 - 0.04 Q where Q is the weekly production and P(Q) is the price, measured in cents per unit. The firm's cost function is given by TC(Q)=120Q+50000. Assume that the firm maximises profit. i) What is the profit maximization quantity and price. ii) What is the total profit per week?

Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40 each, has variable costs of $20 per unit, and fixed costs of $300,000. Kasey Puzzle is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Kasey Puzzle increase the price of its product? с Multiple Choice O O Yes, profit will increase $500,000. No, profit will decrease $500,000. No, profit will decrease $300,000. Yes; profit will increase $300,000.

A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. a) Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b) Using your knowledge from Finite Math, determine the Revenue function in terms of ?. c) Determine the Marginal Revenue at 2 different production levels for example 250 and 500 units. Interpret these results. (HINT: Consider what a positive or negative first derivative implies) d) Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. e) Determinethe Marginal costand interpret the…

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A profit-maximising firm in a competitive market is currently producing 1,000units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000.a)  What is its profit?b)  What is its marginal cost?c)  What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?

What is the Optimum level of the output for the firm? How do you know? Explain your answer. What is the maximum price the firm can charge? At this price and output combination does the firm make economic profit of economic loss? How do you know? Explain your answer.  Calculate the economic profit or loss? Show the formula you used and your calculations.  What is the breakeven price? How do you know?  What is the shut down price?

Question 7 A firm, focusing on producing toothpaste has a demand function 2? = 10 − 0.25?. If fixed cost per unit is -(+ and variable cost per unit function is 2? − 20 + -)), where Q is number of toothpastes produced and P is the price per toothpaste: a) Determine the number of toothpastes that maximizes the company’s profit. b) How much should the firm charge for one toothpaste? c) Find the total profit at the profit maximizing level of output. d) Using the own price elasticity of demand, comment on the firm's pricing policy options.

The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 100 TOTAL REVENUE (Dollars) 90 80 20 10 0 1250 1125 1000 875 750 625 500 On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, or 50 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. 375 250 125 + 0 0 0 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) + 5 20 10 15 25 30 35 QUANTITY (Number of units) 40 Graph Input Tool Market for Goods 45 50 Quantity Demanded (Units)…

Suppose a firm is able to sell their product for a price of $10. You have the following information on the firm's output and cost Output 500 $70 $100 Implicit Costs Explicit Costs Instructions: Enter amounts as a whole number. If the firm is earning a loss indicate with a negative sign (-). What is the firm's economic profit? $

QUESTION 11 Use the following graph to answer questions 33 & 34. Price and cost $40 30 23 20 10 0 MR MC 150 200 AR=D ATC ATC Quantity per day Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC. Before the innovation reduced the cost (i.e., ignore ATC), the firm's maximum economic profit was SO ⒸS30 $750 $1,500 $3,000 54,500

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(Please attempt thus question if you will provide Solution for both questions below...thanks)   1) If a firm wanted to reduce the annual EOQ cost as a percentage of the annual purchase cost by 50 percent, how would the demand rate have to change? A) Decrease by 50 percent. B) Remain unchanged. C) Increase by 50 percent. D) Double. E) Quadruple. Select correct option and explain answer with Calculation.   2) A firm evaluates its EOQ quantity to equal 180 cases, but it chooses an order quantity of 200 cases. Relative to the order quantity of 180 cases, the order quantity of 200 cases has   A) higher ordering cost and higher holding cost.   B) higher ordering cost and lower holding cost.   C) lower ordering cost and higher holding cost   D) lower ordering cost and lower holding cost.

(b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p = 40 – 4q²where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (i) Write an equation giving profit as a function of the number of lightweight compasses produced. (ii) At the moment the company produces 2 million lightweight compasses and makes a profit of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit? Problem з

Should a firm shut down if its revenues is TR = $1,500 per week and:   a. its variable cost is TVC = $1,100 and its sunk fixed cost is TFC = $800?   b. its TVC = $1,600 and is TFC = $600?   c. its TVC = $1,100 and its TFC = $1000 ($800 of which is avoidable if it shuts down?)

Question 5 The following are the total cost (TC), marginal cost (MC) and total revenue (TR) functions for a competitive gadget maker: TC = £250,000 + £10Q + £0.001Q² ƏTC MC = = £10 + £0.002Q de TR = £60Q where Q is the number of gadgets produced. a) Find the optimal quantity of gadgets that maximises profit. b) Use the information obtained in part (a) to calculate the profit. c) If the gadget maker is typical of firms in the industry, calculate the firm's long-run equilibrium output and price. d) Market price declines to £40. Should the firm continue operating in the market. Explain.

Just the bolded one please Using the above graph,   The minimum level of output this firm would produce is 12 units.   The firm's total fixed costs is $56. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.)   The profit maximizing output level for this firm is 14 units.   The economic profit that this firm is earning is $Blank 4. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.)   If this profit level is typical of the industry that the firm is operating in, what do you expect to happen? Blank 5

The graph shown below is that of Do Drop In, a shop in the dry-cleaning industry.       a) At the optimal output, what price will Do Drop In charge and what will be its output?   Price: $    Output:  units   b) At the optimal price and output, what will be its total revenue, total cost, and total loss?   TR: $  ; TC: $    Total loss: $    c) If this firm made a rational decision to continue to produce, despite the loss, average variable cost must be below what level?    AVC must be less than $  .

you are an accountant for a manufacterer of radios. the demand function for the tablets is p= 40-4x2 where x is the number of tablets produced in millions. it costs the company $15 to make a tablet. write an equation for the manufactures profit as a function of the number of tablets produced. the company currently produces 1 million tablets and makes a profit of $21000000, but you would like to scale up production a bit, what greater number of tablets could the company produce to yield the same profit

Questions 9-17

14.The demand function for a new product is p(x) = - 2x + 7 , where p is the selling price of the product and x is the number sold in thousands. The cost function is C(x) = x + 2 .  a) Determine an equation for the profit, in standard form and in function notation. b) How many units must be sold for the company to break even?

Only typed answer and please answer correctly  It is possible to lower the average cost of production by expanding output beyond Q0 to Q1. Why wouldn't a firm expand its output to Q1?   Group of answer choices   a) Demand is not sufficient for consumers to buy Q1.   b) The firm would suffer an economic loss at Q1 while it would break even at Q0.   c) The firm's marginal revenue would be negative at Q1.   d) The firm wants to maximize accounting profit rather than economic profit.