3. Suppose that a firm's profit function is π = 80q₁ - 29² - 9192-3q2 + 100q2, where it must be that q₁ +92 = 12. Solve for qi, q2, 7. Solve for X*.
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- Let a linear cost function C(x) = 21.95 + 1400 and a linear revenue function R(x) = 20x. What is the marginal cost? What is the marginal revenue? Write the profit function P(x). What is the marginal profit?You are given the profit function: Profit = 100Q – Q2 – 100 – 0.5Q2a. In words, how would you find the quantity you should produce to maximize profits?b. What is the slope of this line at that optimal profit point, and how does its value tell you that you areat the optimal quantity?c. In words, what would the slope of that line be if you produced a quantity smaller than the optimalquantity? In words, what would the slope of that line be if you produced a quantity greater than theoptimal quantity?derivative of the firm's profit function is F′(x) = −0.03x2 + 3x - 100, where x ≥ 0 is the output level. How should the company operate now
- Calculate economic and accounting profit, and explain the importanceof the difference.Given a profit function: π(Q) = TR(Q) − TC(Q) Shows that for total profit function of Q will be maximum when the MR=MC.A Milton company works in perfect competition market, its total cost curve in short run is given in this function:TC = 200 − 4Q + 0.5Q2a. What output level should the firm produce to maximize profit? knowing that average revenue is $10.b. What is the firm profit at this level of output?
- Why will firms in most markets be located at or close to the bottom of the long-run avenge cost me?Suppose you run a small business in your building and you act also as a manager of your business. If you do not pay yourself a salary and rent of your building what effect will this practice have on the calculation of the firm’s accounting profit? Economic profit? Explain.Suppose a product's revenue function is given by R(q)=−4q^2+500qFind an expression for the marginal revenue function, simplify it, and record your result in the box below. Be sure to use the proper variable in your answer. (Use the preview button to check your syntax before submitting your answer.) MR(q)=______
- A Milton company works in perfect competition market, its total cost curve in short run isgiven in this function:TC = 200 − 4Q + 0.5Q2a. What output level should the firm produce to maximize profit? knowing that averagerevenue is $10.b. What is the firm profit at this level of output?A Milton company works in perfect competition market, its total cost curve in short run is given in this function: TC = 200 − 4Q + 0.5Q2 a. What output level should the firm produce to maximize profit? knowing that averagerevenue is $10. b. What is the firm profit at this level of output?>>>>>>>>>>>>>>>>>>>>>>>>>>>>Suppose the production function for high quality brandy is given by : Q = √KLWhere q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. If the capital rents for 10$ and the wage are 5$per hour ., write the short run total cost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. How many labor hours will be hired per week?…Evaluate the view that the main goal of firms will always be profit maximization.[3 marks]
