a) Find expressions for TR, (profit) x , MR, and MC in terms of Q. b) Solve the equation dn dQ and hence determine the value of Q which maximizes profit. c) Verify that, at the point of maximum profit, MR=MC.
Q: what is the new optimal solution? (also, you should show the process of how to get new optimal…
A: The total profit has to be maximized. If person-K produces T units of table and C units of bookcase,…
Q: Find total revenue if the price function is P=4Q-500
A: Given: Price function is: P=4Q-500 Where, P is the price of a good Q is quantity of a good
Q: (1) A company in Scotland bottles sparkling water. The fixed cost per month to produce bottled water…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: a) type the profit function of the manufacturer,?(?, ?). B) determine the end points of the profit…
A: Total Revenue -: It refers to the total receipts of a firm from the…
Q: To calculate a firm's per unit of output profit, it is necessary to subtract Select one: a. cost per…
A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…
Q: If a firm's average total cost remains constant as output grows, the firm has constant returns to…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: The profit function of a company is P(x) =x*-x³ + 3025 x², the output that maximizes the profit is…
A: A firm's main objective is always to maximize its profit. The firm maximizes its profit by producing…
Q: Assume a learning curve following the power law. If you double the initial cost c(1) of aproduct,…
A: Learning curve: - it is a graphical representation of cost and output over a time period; it shows…
Q: Misleading product cost numbers are most likely the result of misallocating 1 direct material cost 2…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: An electric power plant uses solid waste for fuel in the production of electricity. The cost Y in…
A: Given that cost of production of electricity Y = 12+1.2x+0.32x2 ........... (1) where x is in…
Q: The normal profit are those which are earned in the short period only True/False
A: Normal profit refers to that point in which the total cost are always or initially equal to the…
Q: 3- Given the total-cost function C(Q) = Q³ – 5Q² + 12Q + 75, Write out the marginal cost function.…
A: Marginal cost indicates the extra cost of producing one additional unit of output. The function for…
Q: Assume that B = -Q² + 4,500Q and C= 2Q are the benefits and costs of increasing the units of X-brand…
A: Answer a) Given Information Revenue = B = -Q2 + 4,500Q Cost = C = 2Q2 The Profit funcation for X…
Q: Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are the benefits and costs of increasing the units of…
A: Answer: Given, Benefit function, B=-Q2+4,500Q Cost function, C=2Q2 (A). Profit: profit refers to the…
Q: Find the marginal cost, if TC is 4+2Q
A: The provided total cost function is: 4+2Q
Q: The firm will maximize its profit at a quantity of units. After choosing the profit maximizing…
A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…
Q: The vertical distance between ATC and AVC measures: a. marginal cost. b. total fixed cost. c.…
A: Total cost of a firm includes Total variable cost and total fixed cost. In the short run fixed cost…
Q: Use the table below to answer the following questions. b) Determine the minimum profit for…
A: Definition: Minimum profit is determined likewise to the exchanging benefit equation in ch6. Ch7…
Q: A factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both…
A: Costs are the expenses that a firm incurs in the form of purchase of inputs to produce goods and…
Q: Find the maximum profit and the number of units that must be produced and sold in order to yield the…
A: We have given the revenue function R(x)=7x-4x2 .... (1) Cost function: C(x)=x3-5x2+4x+1…
Q: Fixed costs decrease per unit of output as volume decreases. True O False
A: Fixed Cost is that cost which are not changed as output changed, that means if output increases or…
Q: Marginal cost is plotted (as an approximation) halfway between successive units of output. a. True O…
A: Costs represent the expenses that firms incur during their production activities. A firm incurs…
Q: If average cost is increasing over a range , it should be the case that a) marginal cost is smaller…
A: When MC < ATC, in this range ATC is decreasing. When MC > ATC, in this range ATC is…
Q: Shopify, a well known Canadian firm is currently maximizing profit. If that is the case, Shopify…
A: Given: Canadian firm is maximizing profit.
Q: Economic profit is: total revenue minus explicit costs. total revenue minus explicit and implicit…
A: Total revenue is the product of price and quantity sold.
Q: The ideal number of VI to be combine with FI is determined by Group of answer choices a. marginal…
A: Option d is correct.
Q: Discuss the optimal method for procuring inputs that have well-defined and measurable quality…
A: Collection of inputs should be well-defined as well as measurable quality which required high…
Q: Study of an automobile industry is a subject matter of microeconomic True/False
A: Microeconomics is that section of economics which deals the individual behaviour and all the…
Q: The law of diminishing returns or variable proportion is only applicable in the
A: Law of Diminishing returns or variable proportion states that in the short run, when more of…
Q: Marginal cost function (C'(q)) and marginal yield function ('R(q)) to extract a smartphone is as…
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: Average variable cost: first tends to decrease, and then increase as output expands. remains…
A: Average variable cost (AVC) is a firm's variable costs (labour, raw materials, electricity, etc.)…
Q: If TC = 108 + 20Q + 3Q2 , what level of Q generates the minimum average cost? Enter as a value
A:
Q: The distance between the TC and TFC curves narrows as more mountain bikes are produced.
A: When a firm produces output, it's fixed cost refers to the cost that remains fixed at any output…
Q: The demand function is x = ÷(25 – 2p) where, x is the number of units and p is the price Let the…
A: 1. Demand function is, x = 13×(25-2p) Therefore, Revenue = Price x Quantity = p×x = p×13(25-2p)…
Q: A zero profit implies that this is a breakeven point, and the amount of demand equals the amount of…
A: At the equilibrium point, the amount of demand equals the amount of supply. i.e., At equilibrium,…
Q: A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2 a) write out the Lagrangian function b)…
A: Given: Q = 160 = 2√(KL) r = 4, k = 2 The cost function can be written as - 4K + 2L (Assuming r =…
Q: Find the value of TFC if average fixed cost is $50 and the output is 50 units
A: The given information is as follows:- Average fixed cost = $50 Output = 50 units We have to…
Q: Tasty Inc. sells table salt to both retail grocery chains and commercial users (e.g., bakeries,…
A:
Q: Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml size is…
A: Answer to the question is as follows :
Q: Discuss the impact of Covid-19 on the profitability of the airline industry – general and low-cost…
A: The global aviation industry is engaged in the assembly, manufacture and operation of various…
Q: A firm earns normal profit Selected Answer: c. when explicit costs equal implicit costs. Answers: a.…
A:
Q: Q15 _____ cost declines over the whole range of output. a. Average variable. b. Total variable. c.…
A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…
Q: The break-even price is equal to the minimum average cost of production. True False
A: Break-even analysis is helpful in setting production levels or a desired sales mix. Because the…
Q: The Hickory Cabinet and Furniture Company makes chairs. The fixed cost per month of making chairs is…
A: The profit of a function is the return one gets after making paying all the costs. That is,…
Q: True/False Average revenue is the derivative of total revenue
A: # Average revenue is given as the ratio of total revenue and total quantity produced. AR = TR/Q
Q: The demand and supply for a whole pizza in Mr Hot’s Market are given by the equations, Qd = 6,300 –…
A: here given that, The demand and supply for a whole pizza in Mr. Hot’s Market are given by the…
Q: Two firms producing identical products may merge due to the existe Multiple Choice economies of…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Step by step
Solved in 3 steps
- Consider the demand function d(p)=300e^−0.01p^2 items purchased when charging p dollars per item. Currently the price is 9 dollars per item. Use marginal analysis to estimate the decrease in demand when the price increases by 0.3 dollars per item. Demand would decrease by approximately _____ items. Round your answer to three decimal places.a) The demand and supply functions of a particular good are given by the equations 5pq = 10 5p + 5q +15A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are: PX = 20 − 0.1QX− 0.05QY PY = 70−0.3QY−0.1QX MCX = 1 + 0.1QX MCY = 2 + 0.25QY MRX = 20 − 0.2QX− 0.05QY MRY = 70 −0.6QY− 0.1QX What are the profit-maximizing levels of output for the two goods? a. QX = 51, QY = 74 b. QX = 41, QY = 24 c. QX = 20, QY = 10 d. None of the choices are correct e. independent
- 4) An economic consultant for MCM corporation recently provided the firm’s marketing manager with this estimate of the demand function for the firm’s product: Qxd = 12,000 − 3Px + 4Py − 1M + 2Ax where Qxd represents the amount consumed of good X, Px is the price of good X, Py is the price of good Y, M is income, and Ax represents the amount of advertising spent on good X. Suppose good X sells for K200 per unit, good Y sells for K15 per unit, the company utilizes 2,000 units of advertising, and consumer income is K10,000. 4 (i) How much of good X do consumers purchase? 4 (ii) Are goods X and Y substitutes or complements? 4 (iii) Is good X a normal or an inferior good?No written by hand solution Suppose that the market for video games is competitive with demand function Qd = 170 – 4p + 2Y + 3pm – 2pc, where Qd is the quantity demanded, p is the market price, Y is the monthly budget that an average consumer has available for entertainment, pm is the average price of a movie, and pc is the price of a controller that is required to play these games. Given that Y = $100, pm = $30 and pc = $30, use Excel to calculate quantity demanded for p = $10 to p = $80 in $5 increments. Using Excel’s spreadsheet Find Qd = ________ when P=$30. Find Qd = ________ when P=$45. Now, Y increases to $120. Re-calculate the demand schedule and find Qd = ________ when P=$20. Let Y = $100 again, but pm increases to $40. Re-calculate the demand schedule and find Qd = ________ when P=$25. Let Y = $100, pm = $30, and pc increases to $40. Re-calculate the demand schedule and find Qd = ________ when P=$50.1. Which of the following might increase product price from P3 to P5? a. An improvement in production technology. b. A decline in the price of a substitute good. c. An increase in the price of a complementary good. d. Rising incomes if the product is a normal good. 2. An increase in price from P3 to P5 would: a. shift this firm’s MC curve to the right. b. mean that MR5 exceeds MC at Q3 units, inducing the firm to expand output to Q5. c. decrease this firm’s average variable costs. d. enable this firm to obtain a normal, but not an economic, profit. 3. At P4: a. this firm has no economic profit. b. this firm will earn only a normal profit and thus will shut down. c. MR4 will be less than MC at the profit-maximizing output. d. the profit-maximizing output will be Q5. 4. Suppose P4 is $10, P5 is $15, Q4 is 8 units, and Q5 is 10 units. This firm’s: a. supply curve is elastic over the Q4–Q5 range of output. b. supply curve is…
- The market research conducted by a firm in the drinking water industry shows that the demand for water has a constant elasticity equal to − 1/? where ? is 9 a) Express the demand function in the form of a differential equation b, Find the general solution for the differential equation by expressing Q (the quantity demanded) as a function of P (the product price). c, ) Suppose that the demand for bananas has a constant elasticity equal to – 9. Explain in words (without providing any calculation) how decreasing the price would affect a banana seller’s total revenue and profits. Please help me. Thank you so much.2. Suppose your marketing research department estimates the demand for your company’s product as Qx= 500-11Px+0.5Y, where Qx is the quantity demanded per week, Px is the price of product X, and Y is the average household income per week in the city. R2=0.87, the standard error of the coefficients of the price (Px) and household weekly income (Y) are 2 and 0.1, respectively. a. Are the coefficients of Px and Y statistically significant? b. Given the initial values Px=$10 and Y=$1000, find price elasticity (Ep) and income elasticity(EY), respectively. Is the demand for the company’s product price and income elastic, or inelastic? c. What action should the manager take to increase the company’s operating revenue? d. Is the company’s product a normal good? How do you know? e. Interpret what R2=0.87 meansAssume that the demand function is equal to: QD = 5000 - 1000P Where the price range is P1.00 to P5.00, derive the demand schedule economics
- Given the following demand function for beef (kg), P = 200 – 5Q i) By how much would the price have to fall for consumers to be willing to buy 1 more kg of beef per day? ii) If the price decreases by N$0.9, by how much will the demand changed?The following relations describe monthly demand and supply for a computer support service to small businesses: Qd=3000-10P Qs=-1000+10P whrer Q is the number of businesses that need services and P is the monthly fee, in dollars. a. at what average monthly fee would demand equal zero? b. at what average monthly fee would supply equal zero? c. plot the supply and demand curves. d. what is the equilibrium price/output level? e. Suppose demand increases and leads to a new demand curve: Qd = 3500 - 10P f. Suppose new suppliers enter the market due to the increase in demand so the new suply curve is Q=-500+10P. What are the new equilibrium price and equilibrium quantity? g. Show changes on the graph.Market Equilibrium A retail chain will buy 900 cordless phones if the price is $10 each and 400 if theprice is $60. A wholesaler will supply 700 phonesat $30 each and 1400 at $50 each. Assuming that thesupply and demand functions are linear, find the market equilibrium point and explain what it means.