5. Suppose that a frm faces the demand curve of the form q = 60 2p. a) Write down the total revenue curve as a function of q. b) Assume MC = 0:2q and MR = 30q. What output level should the firm produce to maximize profits? c) Graph the demand, MC, and MR curves and the point of profit maximization.
Q: What do you understand by retained earning / Ploughing back of profit? State its advantages and…
A: Retained Earning : When the company pays all the types of costs and then left with a certain amount…
Q: 4. Given the following total revenue function TR(Q) and the total cost function TC(Q), maximize…
A:
Q: What output level should the firm produce to maximize profits and what are the profits at this…
A: Answer : Demand is given by q = 100 – 2P. Inverse demand is 2P = 100 – q or P = 50 – 0.5Q. Marginal…
Q: 6. The demand and cost function for SAMURAI Ltd. are in (1) and (2). Find firm's output and total…
A: Here, Demand function is given as: P=45-0.5Q And, cost function is given as: 3+57Q-8Q2+Q3 To find:…
Q: Which of the following statements best answers the question? 7) If x = D(p) = and n 1, constant for…
A:
Q: 1. The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a…
A: Profit can be calculated by subtracting the total cost from total revenue. This can be written as…
Q: 6. The total cost incurred by a company that produce three kinds of goods is reflected by the…
A: (a) Total Production of each firm: Total Cost(TC)=0.5Xa^2+Xb^2+0.75Xc^2-2XaXb+3XbXc+XaXc+9187.5…
Q: Suppose demand and supply curves for you company’s product are given by: QD = 10 -XP QS =5 +YP…
A: Demand: QD = 10 -XP Supply: QS =5 +YP X and Y are between the range (0.1 to 3) Market for good:…
Q: Assume that a firm accepts the following price_demand relationship as being a realistic…
A: The given price-demand function of the market is as follows:
Q: 2. The price p and quantity q sold of a certain product obey the demand function q =-30p + 600, 0…
A: The demand function shows the relationship between the price and quantity demanded of a good. It…
Q: 1. The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a…
A: According to the question, the demand curve and cost curves are given as Q = 400 – 0.5P TC = 20,000…
Q: 22 The total cost and total revenue functions for a product are C(q) = 5,000,000 + 250g + 0.002q²…
A:
Q: How do I compare to my comp set when it comes to food and beverage, other revenue, and total…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: If the investment flow is I(t)-5000t0 5 calculate the capital formation from the end of first year…
A: The accumulation of capital is called capital formation and it is also termed as the investment in…
Q: d. Assuming the price of a quantity sold is Php11.50, indicate the profit (or loss) per number of…
A: The total cost, total fixed cost, total variable cost, average cost, average fixed cost, average…
Q: мсо 15 If a firm faces a downward-sloping demand curve and aims to maximise total sales revenue, it…
A: Total sales revenue is the product of price and quantity sold.
Q: . Which statement must be false? a) A firm with constant returns to scale in production will not…
A: When Average cost remains constant - there are constant returns to scale When A.C rises - there are…
Q: 13. A graph is given below for the cost and the revenue functions. Assume that each (vertical and…
A: We are going to answer this question using provided graph.
Q: 3. Suppose that a firm faces a demand curve that has a constant elasticity of 2. This demand curve…
A: Demand curve is given by q = 256/P2 Or, P = 16/q0.5 Elasticity of demand is 2, i.e. the demand is…
Q: Output prices average (total)cost Total cost marginal cost Total profit/loss 10 10 -108 20 10…
A: In case of Perfect Competition, there are large number of sellers selling identical products. The…
Q: b. Suppose instead that the demand curve is actually nonlinear and all costs disappear (covered by a…
A: "Since you asked for part b, I am answering part b." Profit maximization condition: MR =MC
Q: 3.1 Demand for an item is constant at 1,000 units a year. Unit cost is £50, Rc reorder cost is £100,…
A: We will use a concept such as Economic Order Quantity to answer this question.
Q: 1. The MR curve lies below the demand curve in this figure because the: a. demand curve is linear (a…
A: Answer: (1). Correct option: (d) gain in revenue from an extra unit of output is less than the price…
Q: Suppose that the unit price of a commodity of firm X is defined by: P- 90 - Q and the total cost of…
A: The demand function depicts the inverse invers relationship between price and the quantity demanded,…
Q: the following is the total cost function and demand function of a certain firm TC= 100 +20Q + 7Q Qd…
A: Monopolistic competition refers to a market structure where many firms produce and sell…
Q: 3) Assume that a fim which produces an output according to the following function is attempting to…
A: We have Production function: q=0.5K1/2+0.5L1/21/2 ....(1) In short run, K=36, P=16, v=1…
Q: Q10. Given the supply and demand functions: P = 10 + 2Q, P = 30 – Q Which of these statements are…
A: Given; Demand function; P=30-Q Supply function; P=10+2Q At equilibrium;…
Q: Suppose that LRTC = 60q - 8q2 + 1/3q3 a. Explain how you would estimate a cubic TC function using…
A: Long Run total Cost function : = 60q - 8q2 + 1/3q3 A competitive industry in long run achieves…
Q: Which of the following will maximize profit? a) MR=TC B) MR=AC C) MC=TC D) MC=AC TO)…
A: Profit is the difference between the total revenue earned by the firm and the total cost incurred by…
Q: Q17 Economies of scope is one of the two key factors in determining whether a corporate strategy is…
A: Q17. Economies of scope is one of the two key factors in determining whether a corporate strategy is…
Q: Q9: Given the Average revenue AR = 60 – 3Q a) Find the marginal revenue function. b) Compare between…
A: Here, average revenue curve is given as: AR= 60-3Q According to the AR function, total revenue…
Q: In calculating economic profits, one needs to account for either implicit or explicit costs. only…
A: Explicit costs are the actual out of the pocket expenditures of the firm to purchase or hire the…
Q: Refer to Figure 15-5. Based upon the information shown, what is total revenue for Bearclaws, given…
A: A monopoly is a type of market structure that consists of a single producing agent with complete…
Q: The price of a product is expressed as p, PHP = 10 – 28D where D is the demand. Which of the…
A:
Q: 1. Assuming that the product’s price is P58 per pack, should the competitor sell in the short-run…
A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…
Q: 1. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run…
A: "Since you have asked multiple parts, we will answer only the first part for you. If you have any…
Q: 3. Assume a firm is facing the market demand curve: q function is: c(q) = 2q². a. What is the firm's…
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: Given that MR = P*(1 + 1/Ep) = P*((Ep+1)/Ep) where Ep is the price elasticity of demand, if marginal…
A: Profit is maximized at the level of output where the marginal revenue equals the marginal cost. It…
Q: 1. The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a…
A: Profit function can be written as π = Total revenue - Total Cost
Q: 3) Assume that a firm which produces an output according to the following function is attempting to…
A: Given information Production function q=(0.5K0.5+0.5L0.5)0.5 P=16 W=1 V=1Profit maximizing…
Q: 14. At what price level would a firm's short-run supply curve begin? A-The price at the minimum of…
A: As per the guidelines answer is given to the first question i.e. Q14. Answer 14) "A supply curve for…
Q: 4. Suppose the total revenue function is 4x2 + 3x + 2. Find the average and marginal revenue. In…
A: Given Revenue function: y=4x2+3x+2 .... (1) We have to find average revenue, marginal…
Q: ishing returns in Mi
A: When the output increases in a proportion greater than the increase in input,it is known as…
Q: 3. What is the maximum profit for the price(s)you listed for Question 12?
A: The profit maximizing firm produces and sell output at the point where the marginal revenue is equal…
5. Suppose that a frm faces the
b) Assume MC = 0:2q and MR = 30q. What output level should the firm produce to maximize profits?
c) Graph the demand, MC, and MR curves and the point of profit maximization.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
- 2. ABC Manufacturing has provided you with their demand function Qd = 2000-2p and supply function Qs = 60+5p, please answer the following questions: a. What is the company’s marginal revenue function? b. At level of output is profits maximized? c. At what price is profits maximized? d. What is total revenue at the profit maximization level of output?Mike spends RM35,000 per annum on painting supplies and storage space. He recently received two job offers from a famous marketing firm – one offer was for RM 95,000 per year, and the other was for RM 105,000. However, he turned both jobs down to continue a painting career. If Mike sells 20 paintings per year at a price of RM 8,000 each: Question 1: What are his accounting profits? Question 2: What are his economic profits?For a company with (inverse) demand function P = 4,510 - 55Q and cost function C = 88,000 + 660Q, let QR, QU, and QP denote, respectively, the quantities that maximize revenue, per-unit profit, and overall profit. Which of the following statements is true?A. QU > QP > QRB. QP > QU > QRC. QU > QR > QPD. QR > QU > QP
- 10 Suppose that LRTC = 60q - 8q2 + 1/3q3 a. Explain how you would estimate a cubic TC function using Excel, and what the estimated coefficients (including the constant term) would need to be in order to result in the given LRTC equation. b. For the given LRTC, determine the price, quantity, and profit for a typical firm in a competitive industry in the long run.Wonopoly and natural resource prices Suppose that a firm is the sole owner of a stock of a natural resource. a. How should the analysis of the maximization of the discounted profits from selling this resource (Equation 17.63 be modified to take this fact into account? b. Suppose that the demand for the resource in question had a constant elasticity form q(t)=a[p(t)]b . How would this change the price dynamics shown in Equation 17.67? c. How would the answer to Problem 17.7 be changed if the entire crude oil supply were owned by a single firm?Which of the ff. should influence the decision of Jollibee Foods Corp. in choosing whether to open a store in a given locality? A. Own price elasticity of demand B. Cross price elasticity of demand C. Income elasticity of demand D. Elasticity of supply
- 2. A firm can produce up to 500 units each week. If its average cost function is C(x) = 500/x + 1500 and its total revenue function is given by: R(x) = 1600x − x^2 • What production maximizes profit? What is the maximum profit for that production level? • What production makes the profit equal to zero? (that point is called the break-even point) 3. The joint cost (in thousands of euros) for two products X and Y can be given by the following formula: C(x, y) = 40 + y^2 + 3x + 2xy + (x^2) y + y^3 where x represents the quantity of product X that is produced and y represents the quantity of product Y produced. • If 12 units of product X and 20 units of product Y are produced, what are the marginal costs? • What product line should be expanded in the current level of production?1. If profit is maximum at sales of 700 units, does the firm have no choice but to limit sales at this level? Explain your answer. 2. A business firm produces and sells a particular Variable cost is P30/unit. Selling price is P40 per unit. Fixed cost is P60,000. a. What is the break-even quantity and break-even point? Show your solution. 3. A manager makes the statement that output should be expanded as long as average revenue exceeds average Does this strategy make sense? Explain. 4. Suppose that the steel firm’s costs are shown below: Complete the table and determine the optimal output to be Price of steel P17 per unit. Output (Q) TFC TVC TC MC TR MR Profit/Loss 0 500 0 1 500 50 2 500 90 3 500 140 4 500 200 5 500 270 6 500 350 7 500 450…Revenue at a major smartphone manufacturer was $2.3 billion for the nine months ending March 2, up 85 percent over revenues for the same period last year. Management attributes the increase in revenues to a 108 percent increase in shipments, despite a 21 percent drop in the average blended selling price of its line of phones. Given this information, is it surprising that the company’s revenue increased when it decreased the average selling price of its phones? Explain.
- A company has a linear total cost and a linear total revenue, where the slope of the revenue line is greater than the slope of the cost line. How many of the following will allow the firm to reduce the level of their break-even point? (i) Increase their selling price (ii) Increase their output (iii) Increase their fixed costs (iv) Decrease variable costs a.Four b.One c.Two d.Three e.NoneWhat is the profit-maximizing output level for a company that has demand function Q = 220 - 4P and cost function C = 500 + Q^2?A. 22B. 25C. 220D. 500Management believes it can sell a new product for $8.50. The fixed costs of production are estimated to be $6,000, and the variable costs are $3.20 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Loss) 0 500 1,000 1,500 2,000 2,500 3,000 Determine the break-even level using the above table and use the following Equation to confirm the break-even level of output. PQB = FC + VQB PQB - VQB = FC QB (P-V) = FC QB = FC P-V What would happen to the total revenue schedule, the total cost schedule, and the break-even level of output if management determined that fixed costs would…