2. Consider a manufacturing firm with total cost function: TC = 250,000 + 40Q + 0.01Q2, and market demand function: P = 940 – 0.02Q (a) Determine the firm’s profit function. (b) Determine the firm’s OPTIMAL output level. (c) Find the market price of the output at optimal operation?
Q: Q)Assume that a competitive firm has the total cost function: TC=1q^3−40q^2+740q+1600 Suppose the…
A: Answer: Given, Price = $650 per unit Total cost function: TC=1q^3−40q^2+740q+1600 Quantity Total…
Q: Q: determine whether the following statements are true or false: a) Average fixed costs increase…
A: Fixed cost(FC) do not change in the short run regardless of the volume produced or sold. Market…
Q: If a firm faces the Marginal Cost schedule MC = 180 + 0.3Q2 and the MR schedule is MR = 540 = 0.6Q2…
A: A firm can maximize its profit by producing at an output where marginal revenue (MR) = marginal cost…
Q: Suppose that the manager of a firm operating in a competitive market has estimated the firm's…
A: A competitive market is a market where there are numerous number of producers competing with one…
Q: A firm in a competitive market has the following cost structure as in the Figure 2 below. If the…
A: Fixed Cost = $3 Market Price = $10 Profit maximizing quantities can be found where, Total Revenue =…
Q: A firm has the following demand and average total cost functions: Q = 30 – P 7 1 - 6 +-Q ATC = - -…
A:
Q: The fixed cost is $150, the variable cost per unit $5, and the demand function fo a the product is…
A: The goal of any firm is profit maximization. Profit is nothing but the difference between total…
Q: Suppose that a firm’s fixed costs is $80, and variable costs per unit are $(2Q + 16). The demand…
A: The break-even point is where the total revenue is equal to total cost. This means what the firm…
Q: A price-taking firm's variable cost function is VC = 20', where Qis its output per week. It has a…
A: Fixed cost of a firm is defined as the cost of a firm that does not change with change in the…
Q: A business has found that it can sell 680 items if it sets its price to $66.9. However, if it lowers…
A: When the price is $66.9, then the quantity sold is 680 items. When the price is $40.19 then the…
Q: A manufacturing firm faces the cost of production as follows : Quantity Total Fixed Costs Total…
A: Formulas used in the question are as follows: Average Fixed Cost = Total Fixed Cost/ Output…
Q: A firm has the following profit function Profits(q) = R(q) - C(q) = 60q - [120+40q+10q²] %3D %3! 1.…
A: Disclaimer :- As you posted Multipart questions we are supposed to solve the first 3 questions only.…
Q: 1- A markets consists of five identical producers employing a production plan that uses inputs x1…
A: Producers employ various inputs like labor, and capital into the production process that converts…
Q: Consider a firm's total profit (TP) function as follows: TP = 50Q - Q2 (Q refers to the quantity of…
A: Profit = total revenue - total cost
Q: Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function is…
A: The term “profit” is defined as an excess of total revenue (TR) over the total cost (TC). The…
Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost $10 16 20 3 22 24…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: J. A firm's short-run cost function is given by the following equations: STC-16Q2+144 for Q>0, and…
A: Firms in perfect competition are price takers and accept the market price as given because they have…
Q: (B) A firm has production function Q =F(k,l) = (k+1)2 (where I and k are measures of labor and…
A: Above problem is based on the optimization problem of a firm , minimizing costs for given level of…
Q: A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2Q…
A: The total revenue of a firm is the total payment it receives from the sale of goods and services.…
Q: Assuming that your firms total cost function is, TC (Q) = $21,128+4Q profits when the prices are $7,…
A: In the question, the total cost is TC = 21128 + 4Q and prices are $7, $9, and $11. Now we are…
Q: Consider that a company has a total cost function TC = 3Q3+2Q2+6. a.What is the average and…
A: Part a: Average Cost = Total Cost/ Quantity Marginal Cost = dTC/dQ TC = 3Q3+2Q2+6 Average Cost =…
Q: 2. Consider a firm in a competitive market that has the cost function C(q) = 8 + 2q°, where q is the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A perfectly competitive firm has the following total cost function:…
A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…
Q: Assume a firm has the following total cost function and revenue functions; TC = ½ Q2 -6Q2 + 6Q + 7…
A: The firm produces at profit maximization or loss minimization level of output where the marginal…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) =1/30q2 − 12.85q +…
A: R(q) = 40q − 12q2 A(q) = 1/30 q2 − 12.85q + 20 + 400/q Total cost = A(q) * q
Q: A firm's demand function is given by p 234 - 5q, where p and q denote the price and quantity,…
A: Given Demand function p=234-5q .....(1) Where p and q denote the price and quantity…
Q: 2. Consider a market with 90 firms, each firm has a short-run total cost function as follows: TC(q)…
A: Fixed cost is that part of total cost that does not depend on quantity. It remains fixed even when…
Q: Here is the production cost function, in $ of producing q units of a product: 2200 C(q) = 300 +0.8q2…
A: Since you have posted multiple questions with multiple subparts, as per guidelines, we are supposed…
Q: A perfectly competitive firm has the following total cost function: Total output Total Cost 0…
A: The perfectly competitive is the type of market structure where there are large number of buyers and…
Q: 1. Given the price-demand function p(x)=-4x+320, and Total cost function C(x)=40x+3604. (a) Using…
A: Profit is the difference between total revenue and total cost. At break even profit is zero.
Q: Assume that a firm in a competitive market faces the following cost information. If the market price…
A: Firms in perfect competition are price takers as there are a large number of firms selling identical…
Q: the unit cost, in dollars,to produce bins of cat food is $4 and the fixed cost is $22638. The…
A: Hi, thanks for the question. Since there are multiple subparts, we will answer first three subparts.…
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: The total cost is the cost incurred for using the factors of production to produce a good. Costs…
Q: 3. Given the total profit and the fixed cost TFC is 40, variable cost are 2 then the total revenue…
A: The method for Total Revenue is as follows: Number of Products Sold x Price Per Product = Total…
Q: .2 Exercise 2 Consider a competitive firm with total cost function C(a) = F + 3q+ 3 or all q > 0,…
A:
Q: Assume a firm's short-run cost function is given by the following expression: C (q) = 10 +q+ If the…
A: The cost function represents the relation between the cost incurred and the quantity of goods…
Q: If profit is maximum at sales of 700 units, does the firm have no choice but to limit sales at this…
A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…
Q: Consider a firm whose total cost function is 2q 3 – 6q2 + 13q. a. If the price of a unit of output…
A: a.
Q: 1. The Bergen Company and the Gutenberg Company are the only two firms that produce and sell a…
A: a) P=580-3QNow,TR=P*QTR=(580-3Q)*QTR=580Q-Q2Now,MR=dTRdQ=580-2QThe total cost of Bergen company…
Q: A perfectly competitive firm has the following total cost function: Total output Total Cost 0…
A: Answer: A perfectly competitive firm produces that level of output where marginal revenue is equal…
Q: A perfectly competitive firm has the following total cost function:…
A: Total output Total cost Marginal cost 0 20 - 1 30 10 2 42 12 3 55 13 4 69 14 5 84 15…
Q: Given Cost and Revenue functions C(q)=q^3-11q^2+55q+5000 and R(q)=−3q^2+2400q, what cost is incurred…
A: Hi there , as per our guidelines we are only allowed to solve up-to 3 sub parts of a question at a…
Q: The profit function for a firm is given by (q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm…
A: Since, you have asked question will multiple parts, we will be answering the first three parts for…
Q: B. The profit and cost functions for the sale of college polo shirts are given by P(x)=650x-8x'…
A: The markets are the place where the buyers of goods, and services tend to meet and interact with the…
Q: Demand function is given by Q=84-2P and cost function is C(q)=25+2q+q2 1) What are the qualitative…
A: Given Demand curve: Q = 84-2P ......... (1) Cost function: Cq=25+2q+q2 ........... (2)…
Q: 1. Suppose a company has demand function given by q = 220- 4p and a cost function C(q) = 1525 + 12q.…
A: Given: Demand function: q= 220 - 4p Or, p = 220/4 - (1/4)q p = 55 - 0.25 q Cost = 1525 + 12q…
Q: Which of the following statements is correct with respect to profit maximization? PLEASE EXPLAIN…
A: In economics, an individual will enter into a transaction if he is able to generate profit from it.…
Q: Suppose a firm’s short-run cost curves were found to be: Total Cost = SRTC = 1 + 2Q + Q2 Marginal…
A: Since the firm is a price taker so its perfectly competitive. The firm will maximise profit at a…
2. Consider a manufacturing firm with total cost function:
TC = 250,000 + 40Q + 0.01Q2, and
(a) Determine the firm’s profit function.
(b) Determine the firm’s OPTIMAL output level.
(c) Find the market price of the output at optimal operation?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Bitcom, 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?Q)Assume that a competitive firm has the total cost function: TC=1q^3−40q^2+740q+1600 Suppose the price of the firm's output (sold in integer units) is $650 per unit. Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution. A. How many units should the firm produce to maximize profit? B. What is the total profit at the optimal output level? Please specify your answer as an integer.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.
- A firm's demand and total cost function are given by the expression: P = 20 - Q/2 (1) TC = 0.5Q2 + 36 (2) Where P is price per unit in £ TC = total cost in £ Q is quantity demanded and produced. Find the profit-maximising level of output using the profit function and calculate how much profit is made at this output level.Assume that a competitive firm has the total cost function: TC=1q3−40q2+880q+2000 T C = 1 q 3 - 40 q 2 + 880 q + 2000 Suppose the price of the firm's output (sold in integer units) is $550 per unit. Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution. How many units should the firm produce to maximize profit? Please specify your answer as an integer. What is the total profit at the optimal output level? Please specify your answer as an integer.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.
- Consider that a company has a total cost function TC = 3Q3+2Q2+6. a.What is the average and marginal cost function and what are their values ifQ = 8?b. If the (inverse) demand function facing the firm is P = 6 - 2Q, what value must the slope of the isobenefit curve take for the firm to maximize its profit? Indicate the generic condition as well.Define Q to be the level of output produced and sold and assume that the firm’s cost function is given by the relationship: TC = 20 + 5Q+Q2. Furthermore, assume that the demand for the output of the firm is a function of price P given by the relationship: Q=25− P a)Define total profit as the difference between total revenue and total cost and express in terms of Q the total profit function for the firm. Note: Total revenue equals price per unit times the number of units sold. b)Determine the output level where total p rofits are maximized. c)Calculate total profits and selling price at the profit-maximizing output level. d) If fixed costs increase from $20 to $25 in the total cost relationship, determine the effects of such an increase on the profit-maximizing output level and total profits. Use the cost and demand functions in Exercise 5 to calculate the following: e)Determine the marginal revenue and marginal cost functions. f) Show that, at the profit-maximizing output level…Define Q to be the level of output produced and sold, and assume that the firm’s cost function is given by the relationship TC = 20 + 5Q + Q2 Furthermore, assume that the demand for the output of the firm is a function of price P given by the relationship Q = 25 - P a. Define total profit as the difference between total revenue and total cost, and express in terms of Q the total profit function for the firm. (Note: Total revenue equals price per unit times the number of units sold.) b. Determine the output level where total profits are maximized. c. Calculate total profits and selling price at the profit-maximizing output level. d. If fixed costs increase from $20 to $25 in the total cost relationship, determine the effects of such an increase on the profit-maximizing output level and total profits.
- A firm has the following demand and average total cost functions: Q = 30 − PATC =7/Q− 6 +1/2Q Find:i. The total revenue function ii. The total cost function iii. The level of output that will maximize revenue and minimize total costs iv. The profit function and the level of output that maximize profits v. Show that AR = PAssume 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 )
