3. Rudy Chappa owns an internet running goods website. He sells a single type of shoe: ‘Nike elite' cross country shoes. If the revenue function for the shoes is TR = (140- Q)Q and the cost function is TC = 1200 + 20Q, what is his profit maximizing number of shoes? a. 20 b. 40 c. 60 d. 80
Q: When Price is increased from $40 to $42, the Quantity Demanded falls from 50 units to 45 units,…
A: When a product's price changes, how much is consumed changes according to Price elasticity of…
Q: Which of the following questions is a type that tools of econometrics are meant to answer? A. If…
A: The econometric model shows the relationship between two or more variables. It tells about the…
Q: Determine if each scenario would result in a more efficient m correct category.
A: A more efficient market is one where all relevant information is quickly and accurately reflected in…
Q: Determine whether each of the following topics would more likely be studied in microeconomics or…
A: Economics is the study of the distribution of available resources among different agents to produce…
Q: 4. Describe and comment on each of the following education development relationships: a. Education…
A: Economic growth refers to a measure of the increase in a country's real Gross Domestic Product (GDP)…
Q: 2. Determine the optimal solution for the linear program below using the graphical method: Minimize…
A:
Q: alculate the increase in output (GDP) generated by $100 increase in autonomous spending for…
A: Given information: Consumption function: C = 200 + 0.9*(Y-T) --------------- The marginal propensity…
Q: For the production function Y = K1/3L2/3 (a) find the function for output per capita (b) What is…
A: Given information: Y = K1/3L2/3 ---------> Production function. Where Y is output; K is capital;…
Q: Why has it been politically challenging for governments to refocus efforts on new technology,…
A: A recession is defined as a period of the business cycle when there is a decline in economic…
Q: 4.3 a. On a given evening, J. P. enjoys the consumption of cigars (c) and brandy (b) according to…
A: In economics, the term "utility" is used to define the value or worth of a good or service. Utility…
Q: Which of the following is a fundamental principle of utilitarianism? Select one: a. Inequalities in…
A: Utilitarianism refers to the theory that gives more importance to morals and happiness.
Q: Suppose that the govern- ment imposes a producer tax. That is, the firm pays t units of consumption…
A:
Q: True/ False Income and consumption has a direct relationship for the normal goods.
A: A normal good is a type of consumer good for which demand increases as the consumer's income…
Q: 5. Show why a $10 billion reduction in government purchases of goods and services will have a larger…
A: Aggregate Demand: Aggregate demand in an economy is the sum of private consumption expenditure (C),…
Q: And now for some Shakespeare (who says economists aren’t cultured!). In Shakespeare’s play Hamlet,…
A: Given information As per Ophelia, there are 2-period consumption models, where one can borrow money…
Q: 2.) Sugar Enterprises manufactures high speed personal computers as its main product line. Its short…
A: Short-run production function is given as Q=3600K-4.5K2
Q: Q1) Given the following economic identities: GDP = C+I+(X-M)……………………………...…………………………………………….…
A: 1) Macroeconomic policy is characterized as a set of policies and guidelines enacted by the federal…
Q: How do you find the Marginal rate of Technical Sbustitution for the CES: (a1x1^p +a2x2^p)^(1/p)?
A: In economics, a production function is an equation that expresses the relationship between the…
Q: Calculate the future value if present value (PV) = $1548, interest rate (r) = 9.0% and number of…
A: The formula for calculating future value from present value is:- Future value x= Present value (…
Q: In the previous problem, do we have a trade surplus or trade deficit?
A: Gross domestic product (GDP) is the standard computation of the value added created through the…
Q: The-table-below-shows-unemployment-and-labor-force-statistics for an economy. Actual rate of…
A: ***Since the student has specifically asked to solve the first three subparts, hence, the expert has…
Q: The sharp increase in the price of goods and services post covid-19 pandemic is expected to make all…
A: Since, it is given that, after covid-19 there is sharp increase in the price of goods and services…
Q: A survey of 800 college seniors resulted in the following crosstabulation (Table 1) regarding their…
A: Graduate School Business Engineering Others Total Yes 70 84 126 280 No 182 208 130 520 Total…
Q: Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 Dave Guitars 25 20 15 10 5 0 2 3 4 5 6 7 8 Tubas 0 1…
A: Opportunity cost is the cost of producing one good in terms of other. Comparative advantage is when…
Q: 10. Mobile phone portability allows consumers to retain their phone number if they change to a…
A: Mobile phone portability is the facility that helps consumers to change their number from one…
Q: Below, you are provided data on macroeconomic expenditures last year in Asartaland: Durable…
A: Nominal GDP mirrors the crude numbers in current dollars unadjusted for inflation. Real GDP changes…
Q: Please explain how to graph this. From the curve of the demand and supply and the factors that…
A: The tariff on imported raw sugar and the advertising campaign by Coke and Pepsi will likely cause…
Q: A consumer consumes two goods: wraps and tea, with respective quantities x1 and x2. Suppose the…
A: Indifference curve is the curve in which satisfaction of consumer on different combination is…
Q: 4. In the short run, which of the following costs for StayFresh Bakery Company are likely to be…
A: Fixed costs are expenses that do not change with changes in the level of production, whereas…
Q: 5. CostCo is a retail outlet that requires members to pay an annual fee to access its stores.…
A: In two-part tariff the price of the good or service will be comprised of two parts: a fixed fee and…
Q: You'd like to study social networks. Consider the following 7 people {A,B,C,D,E,F,G} in a social…
A: Formula for permutation is given as: nPr = n!/(n-r)!
Q: The subway fare in your town has just been increased from 50 cents to $1.00 per ride. As a result,…
A: Price elasticity The demand-price elasticity is a gauge of how a product's consumption changes in…
Q: wo individuals, Fred and Helen, are in an economy with no production, and each have the utility…
A: General equilibrium is an economic concept that describes a state where the market prices and…
Q: Month 1 Month 2 Month 3 Quantity of bourbon (QB) 10 7 8 Quantity of fried chicken (Qc) 20 18 32…
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: How much monthly deposit must be made for 7 years and 2 months in order to accumulate P 250,000 at…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: The pizzeria's fixed cost is $ Complete the third column of the following table by calculating the…
A: Fixed cost is independent of quantity. It is the total cost when no quantity is produced. Variable…
Q: 2. The following data show how the marginal external benefit and marginal private benefit associated…
A: 2) In economics, externality refers to expenditures or benefits acquired by a third party who has no…
Q: What are the four basic consumer financial management needs? Which specifically apply to consumer…
A: Consumer financial management refers to the process of managing one's personal finances to achieve…
Q: There is a new government in a developing country which is a member of the IMF and the World Bank.…
A: Introduction A new government of a developing country, which is a member of the IMF, and World Bank…
Q: The central bank decreases the money supply through an open market operation. Such policy is called…
A: Introduction Inflation is controlled and stable because central banks utilize monetary policy to…
Q: Table 4-11 Price $10 $8 $6 $4 $2 a) Quantity Demanded c) 10 d) 20 30 40 50 b) $2 and 50 units.…
A: Market demand and Supply: In the market for a good, we have the demand and the supply curves. And…
Q: 4. Exercise 2.5 The demand for MICHTEC's products is related to the state of the economy. If the…
A: Expected annual sales = [P(expansion)* GNP in case of expansion] + [P(normal)* GNP in case of…
Q: Explain the difference between long run and short run aggregate supply. Why do economists…
A: Aggregate supply is defined as the total amount of goods produced and offered for sale by the…
Q: (a). The following information is given about country X and Y Indicators Life Expectancy at Birth…
A: Human Development Index: Human Development Index or HDI determines the rank of nations by using a…
Q: Why is the average cost curve U-shaped?
A: The total cost curve shows the cost associated with every possible level of output, thus if we…
Q: Part II. Discuss the Characteristics of Market Failures and give a scenario to illustrate the…
A: A market failure is defined as an economic situation characterised by inefficient distribution of…
Q: O The equation of the total cost curve of a perfectly competitive firm in the short-run is TC=50…
A: Here, total cost function is given as: TC=50+2q2 Where, total fixed cost (TFC)is 50 and total…
Q: 2. Consider a pharmaceutical company considering research and development of a new drug. They…
A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: The last personal savings rate recorded by the Federal Reserve database was 2.4%. Assume your…
A: Following is the given information: Personal saving rate = 2.4% Average tax rate = 35% Government…
Q: Nominal GDP USD million Population Japan Inflation Persons million % 2019 5.148.800 4.901.700 126,20…
A: Nominal GDP per capita = Nominal GDP / Population size Real GDP growth rate = Nominal GDP growth…
Profit maximization level of output is the optimum output produced at the point where marginal revenue (MR) equals marginal cost(MC).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 11.2 Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 70 + 0.10x + 0.001x2 dollars. (a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.] R'(x) = P'(x) = (b) Compute the revenue and profit, and also the marginal revenue and profit, if you have produced and sold 500 copies of the latest edition. revenue $ profit $ marginal revenue $ per additional copy marginal profit $ per additional copy Interpret the results. The approximate from the sale of the 501st copy is $ . (c) For which value of x is the marginal profit zero?x = copiesInterpret your answer. The graph of the profit function is a parabola with a vertex at x = , so the profit is at a maximum when you produce and sell copies.A company is the sole producer of holographic TVs. The daily demand for these TVs is Q=10,200 - 100P, where Q is the quantity demanded and P is the price. The cost of producing the TVs is (note that this implies that marginal cost is equal to Q, MC = Q). What is the company’s total revenue schedule? What is the company’s marginal revenue schedule? What is the profit maximising number of TVs that the company must produce each day? What price should it charge per TV? What is the daily profit?You are running a chocolate factory and need to decide on the price to sell the chocolate as well as the quantity to produce. Demand curve; Q = 8.5 - 0.05 * P. The cost curve is C = 100 + 38Q. The business is a profit maximizer. 1) What is the best price to charge each week? 2) What is the best quantity to make each week? 3) What are the expected profits Is it possible to get this in an excel with equation formulas
- referring to the graph above, the profit-maximizing quantity is a. 7 b. more than 10 c. 10 d. 0Babe’s Bats (BB) sells baseball bats for children around the world. The firm faces a demand curve of Q=10-0.4P, where Q is measured in thousands of bats and P is dollars per bat. BB has a marginal cost curve of MC=5Q. What is BB’s marginal revenue curve (equation)? What is BB’s profit-maximizing output? Show the profit-maximizing decision graphically.Babe’s Bats (BB) sells baseball bats for children around the world. The firm faces a demand curve of Q=10-0.4P, where Q is measured in thousands of bats and P is dollars per bat. BB has a marginal cost curve of MC=5Q. A. What is BB’s marginal revenue curve (equation)? B. What is BB’s profit-maximizing output? C. Show the profit-maximizing decision graphically.
- Based on the following table: Output Price($) Total Costs($) 0 10 31 1 10 40 2 10 45 3 10 48 4 10 55 5 10 65 6 10 80 7 10 100 8 10 140 9 10 220 10 10 340 a. What is the profit-maximizing output? unitsA manufacturer of mountain bikes has the following marginal cost function: C′(q)=700/0.5q+2 where qq is the quantity of bicycles produced. When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $3200, find the total cost to produce 35 bicycles.Answer: $ b) If the bikes are sold for $250 each, what is the profit (or loss) on the first 35 bikes?Answer: $ c) What is the marginal profit on bike number 36?Answer: $Shakti Inc. has been granted a patent for its arnica toothache balm. The table to the right shows the demand and the total cost schedule for the firm. What is Shakti's profit minus maximizingoutput? A. 4 units B. 6 units C. 7 units D. 5 units Price per dose (Dollars) Quantity Demanded (Dose) Total Cost of Production (Dollars) $80 0 $80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 340
- Caroline opens a lemonade stand for two hours. She spends $15 for ingredients and sells $50 worth of lemonade. In the same two hours, she could have mowed the neighbor's yard and earned $10. a. What are Caroline’s explicit and implicit costs? b. What is Caroline’s accounting profit? What is her economic profit? Show how you calculated each profit. The government imposes a $1,000 one-time license fee on all pizza restaurants. As a result, which of the following cost curves shift, and why or why not?a. Average total cost.b. Marginal Cost.c. Average Variable Cost.KidzPoses Inc., a profit-maximizing business, is the only photography business in town that specializes in portraits of small children. James, who owns and runs KidzPoses, expects to encounter an average of eight customers per day, each with a reservation price (shown in the following table). Assume James has no fixed costs, and his cost of producing each portrait is $12. Customer Reservation Price ($ per photo) 1 50 2 46 3 42 4 38 5 34 6 30 7…Habib Bank Limited estimates equation of demand of its product as: Q = 55 – 0.5P - (where P = price and Q = Quantity of output), and its total cost of production as TC = 20 + Q + 0.2Q2 Where TC = total cost and Q = Quantity of output) Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC? Average Variable Cost AVC? Average Fixed Cost AFC.? Marginal Cost MC? The output level that will maximize total profit and the amount of revenue and profit that Habib Bank would receive at optimal level of production.? The output level that minimizes average total cost.? please answer all questions