A firm faces a demand function (where q=quantity demanded and p-price): q = 500 – 6p and a total cost (TC) function (where q=output): TC =-q² + 20q + 375 128. %3D %3D Find break-even point when TR=TC
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- A firm faces a demand function (where q=quantity demanded and p=price): q = 200 – 2p and a total cost (TC) function (where q=output): TC = 1/2 q^2+20q+375 Find break-even point when TR=TCQ1. A firm faces the following average revenue (demand) curve: P = 100 - 0.01Q where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 50Q + 30,000. Assuming the firm maximizes profits, a. What is the level of production?The demand and total profit function, P(x) for rooms in a hotel are given as follows. 3x = 600 - P P(x) = 450x – 3.5x2 - 4000 Where p is the price in ringgit per room and x is the quantity of room rented. Determine the marginal cost when 2 rooms are rented
- Suppose that a firm’s fixed costs is $80, and variable costs per unit are $(2Q + 16). The demand function for its product is given as:2Q + P = 54Determine its break-even point (Hint; At Break-even, revenue equal cost)A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500 per day when producing 15 sinks. The company has a daily demand function of q = 360 − p, where q is the number if laundry sinks demanded and p is te price of a laundry sink. (e) What is the maximum profit?Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function4? = 35 − 0.5?. If total fixed cost is GH¢80 and average variable cost per unit function is 3? −51+325/Q, where Q is number of tooth paste produced and P is the price per tooth paste (in GH¢).What is the total profit at the profit maximizing level of output, and what is the best pricing policyoption?
- A new restaurant – Chang – has just opened in Austin. It is serving the upscale market, with truly outstanding pasta that is flown in overnight from Bologna, Italy. Chang offers a fixed-price menu with appetizer, three dishes of pasta, and a delicious tiramisu for dessert. The restaurant faces the following demand function: Q = 600 - 4P. where Q is the number of guests per day. The marginal cost is constant at $50 per customer (including expenses for ingredients and personnel). The restaurant is paying a rent of $2,000 per day. What is the proft mazimixing number of guests and what price should Chang charge to maximize profits?The price-demand equation for the production of bluetooth speakers is: p = 250 - 1/20x, for 0 is less than or equal to x and x is less than or equal to 5000 where x speakers can be sold at $p per each speaker. The cost to produce x speakers is given as C(x) = 150,000 + 30x, where both C(x) and p are represented in dollars ($). - find the profit function and the marginal profit and interpret the quantity P'(4500) - find the marginal cost and interpret the quantity C'(3000) - find the revenue function and the marginal revenue and interpret the quantity R'(3000)A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $1,024 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192? 0 or 5.33 or 8 5.33 or 8 0 or 5.33 0 or 8
- Asap Firm A works in a competitive market and earns 0 profit for the profit-maximizing quantity level. Cost function of the company is: TotalCost=3Q2-10Q+300 a- Find the price and quantity values for the profit-maximizing level. b- Let’s assume that the fixed cost increases to 500. Would you shut down or not the company (based on rationality)?Given cost and price (demand) functions C(q)=110q+45,000 and p(q)=−1.8q+900, What price should be set to maximum profit? It should be $enter your response here per item. (Round answer to nearest cent.)A two product firm faces the following demand anc cost functions: Q1 = 40 - 2P1 - P2 Q2= 35 - P1 - P2 C = Q21 + 2 Q22 + 10 (a) Find the output levels taht satisfy the first-order condition for maximum profit. (use fractions.) (b) Check the second-order sufficient condition. Can you conclude that this problem possesses a unique absolute maximum? (c) What is the maximal profit?