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- Q2.The management of an ‘Electronic Goods’ manufacturing company asked you to give an advice about changing its current production plan, given the following information:- Annual production plan of computers is 4200 computers.- Total cost of production is OMR 824000.- Fixed cost is OMR 320000.- Revenue function: R = 460.2Q – 0.05Q2 1-Use the above information to formulate the price function and the total cost function, and determine the following: 1) Profit-maximizing quantity.2) Profit-maximizing price.3) Maximum profit value.4) Revenue-maximizing quantity. 2-Should the company change its current annual production plan of computers in order to maximize its profit?Assume that a firm’s marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm’s total cost of production is $1,000. If the price of the product is $5 per unit, the total revenue earned by the firm will be:Question (3): Consider the firm whose goal is to maximize profits and there is competition in the marketplace. The firm’s total revenue and cost functions are displayed below. R(q)=q2+14q+20 C(q)=2q2-8q+15 What is the firm’s total fixed cost function, and total fixed costs of production? How many units must the firm manufacture to minimize its total costs of production? (For this question give me detailed, not too much, answer )
- Suppose a company's revenue function is given by R(q)=−q3+400q2R(q)=-q3+400q2 and its cost function is given by C(q)=550+12qC(q)=550+12q, where qq is hundreds of units sold/produced, while R(q)R(q) and C(q)C(q) are in total dollars of revenue and cost, respectively.A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.) MP(q)=MP(q)= B) How many items (in hundreds) need to be sold to maximize profits? Answer: hundred units must be sold. (Round to two decimal places.)Q4 the unit cost, in dollars,to produce bins of cat food is $4 and the fixed cost is $22638. The revenue function,in dollars, r(x)=-2x^2+452x find the cost function. c(x)=___find the profit function. p(x)=at what quantity is the smallest break-even point ? a.dollars b.servings of cat food c.bins of cat food d.grams of cat foodBitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q What does this function imply about the effect of the law of diminishing returns on Bitcom’s short-run cost function? Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output. Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175? Compute Bitcom’s short-run supply curve for its product. Provide a 100 word summary of how this can be applied to the current economy. Show Calculations and can it be done in Excel?
- Total revenue for producing 10 units of output is $5. Total revenue for producing 11 units of output is $9. Given this information, the Average revenue for producing 11 units is $2. Average revenue for producing 11 units is $4 Marginal revenue for producing the 11th unit is $2. Marginal revenue for producing the 11th unit is $4.Q: determine whether the following statements are true or false: a) Average fixed costs increase when the total volume of the produced goods increases. b) If the market price is constant, the increase in output will not affect the size of the firm's profit.Suppose that the marginal revenue for a product is MR = 775 and the marginal cost is MC = 39 times sq. root of x+1, with a fixed cost of $906. Find the profit function, then find the profit or loss fromthe production and sale of 3 units.__________________________________________________
- Units of Resource 0 1 2 3 4 5 Total Product 0 10 18 24 28 30 Total Revenue ($) 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…Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400. If the price of the product is $15 per unit and the firm produces at the profit-maximizing level, the firm will earn an economic profit equal to a. zero. b. its normal profit. c. more than zero but less than $500. d. $500. e. more than $500.1- Use the total cost (TC) schedule that is presented in the table below to determine the optimal rate of production when the firm can sell all of the output it produces at a price of $10 per unit. Also determine the level of profit (or loss) that the firm will experience at this level of output. Q 0 1 2 3 4 5 6 7 8 9TC $ 5 7 8 10 14 20 28 38 50 72
