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=TC
Q: If a perfectly competitive firm decreases production from 11 units to 10 units and the market price…
A: Revenue refers to the amount of money earned by the firms by selling the goods and services in the…
Q: The supply function for a product is Qs=2P - 14. while the demand function for the same product is…
A: ANSWER MARKETING EQUILIRIUM IS THE ACTUAL PRICE IN WHICH WORLD IS BALANCING ACT BETWEEN SUPPLY AND…
Q: Suppose a rms demand function is given as Q = 55 – 0.5P, where P is price and Q is rate of output…
A: Total revenue is the total receipts collected from the sale of goods or services in the market.…
Q: There is a competitive industry with an infinite number of potential firms. All firms have the same…
A: In the Long Run equilibrium price P*, the profits are zero, that is, P* = MC(q) =ATC(q) MC(q) =…
Q: Consider a firm with the following production function: f(x1,x2) = If the input prices are 2 and 4…
A: We are going to use Marginal rate of technical substitution ( MRTS) concept to answer this question.…
Q: Assume a firm's supply function for a good is given by the following expression: qs (p) = p−10…
A: qs (p) = p−10…
Q: Each firm in a competitive market has a cost function of C= 10q – 49° + g°. There are an unlimited…
A: In the long run firms make zero economic profit, which means long run equilibrium price is equal to…
Q: onsider a competitive firm that has the cost function, TC(Q) and faces the demand P = P(Q), that is,…
A: Since, you have asked a question with multiple parts, we will be answering the first three parts for…
Q: Given a firms demand function Q-90+2P=0 and it's average cost function AC=Q²-8Q+57+2/Q. Find the…
A: Given Information Demand function Q-90+2P=0 Average cost function AC=Q²-8Q+57+2/Q
Q: XYZ Corporation produces garments. Its cost function is C(Q) = 1.5Q. The inverse demand function is…
A: We have the following information- Demand function, P = 9 - 0.005Q cost function, C = 1.5Q Let us…
Q: The inverse demand function for a commodity is given by p=41-0.33q and the cost of producing that…
A: Introduction The technique of maxima and minima can be used to determined the level of output at…
Q: Each firm in a competitive market has a cost function of: C=25 + q°, so its marginal cost function…
A: The equilibrium for a competitive firm is given at a point : P = MC MC = 2q for q units For Q…
Q: Given a cost function C(x) = x 2 +50x+200 and a demand curve p = 200 − 2x, find the number of units…
A: Profits are the excess of revenue receipts over the costs incurred in the production of activities.
Q: The demand function for a firm is p = 320 – 3.2x, and the cost function is C(x) = 100 + 80x –…
A: (i) Demand Function p = 320 - 3.2x Cost Function C(X) = 100 + 80x - 1.6x2 Profit = Revenue - Cost…
Q: Define Q to be the level of output produced and sold, and assume that the firm’s total cost function…
A: The profit of any firm is maximized at a point where marginal revenue is equal to marginal cost. The…
Q: A limit pricing strategy is most likely to be successful when: A market demand is rising B there are…
A: Limit Price is a pricing tactic used by monopolists to deter competition. When a monopolist sets its…
Q: Each of the 8 firms in a competitive market has a cost function of C= 5+q°. The market demand…
A: A Perfectly competitive firm has a constant price at all levels of output. Profit is maximized at…
Q: Define Q to be the level of output produced and sold, and assume that the company total cost…
A: The firms in every market are the sellers, suppliers, or the producers of goods, and services. The…
Q: The supply of a Profit maximizing firms in competitive markets is zero when the price is below the…
A: A competitive market is one with many buyers and manye sellers thate has a specific profit…
Q: The inverse demand for tea is given by P = 12 – 0.03Q, where Pis the price per a gram of tea and Qis…
A:
Q: A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2 Q…
A: Q = 30 − P P = 30-QATC =7/Q− 6 +1/2 Q Total Revenue (TR) = PXQ = 30Q-Q2 Total Cost (TC) = ATCXQ TC…
Q: A firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 1,000 + 40Q, respectively.…
A: According to question given that price(demand ) equation and total cost equation, using both we can…
Q: If the market quantity demanded and quantity supplied functions are: QD = 187 - 4P Qs = 49 + 9P and…
A: Given:Qd = 187 - 4PQs = 49 + 9PMC = 2 + 3q
Q: Suppose the (inverse) demand for a firm’s product is given by P = 10−2Q and the cost function is…
A:
Q: The demand equation for a product is p= a– bq and the cost function is C(9) = kq² – rq where p is…
A: At equilibrium Marginal revenue is equal to marginal cost. Firstly we calculate marginal revenue…
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: Given: Fixed Cost = $100 Total Cost = $2500 Output= 15 sinks q=15demand functionq=360 - p15=360 -…
Q: The demand equation of a certain product is p=90-q-q². The total cost function is c=50+q-0.1q². Find…
A: Profit refers to the portion of the total revenue that is left to a producer once all factor inputs…
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: Profit maximizing level of output is at the point where marginal cost MC equals marginal revenue MR.…
Q: Assuming fixed costs are unavoidable in the short run, a perfectly competitive firm’s short run…
A: A perfectly competitive market is one where there are several firms competing with one another by…
Q: Suppose that the cost required for a company to produce r units of its product is a linear function…
A: Note: I have solved the question completely as we are expected to solve it properly. Answer: (a).…
Q: Find the price that will maximize profit for the demand and cost functions, where p is the price, x…
A: The law of demand establishes the relationship between the price of the good and the quantity of…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q…
A: R(q) = 40q − 12q2 A(q) = 1/30 q2 − 12.85q + 20 + 400/q Total cost = A(q) * q
Q: A firm’s demand function is P= 60 − 0.5Q If fixed costs are 10 and variable costs are Q + 12 per…
A: Profit is the amount which a producer earns over and above of all the costs. We can calculate profit…
Q: Consider with the cost function producing a single good with the cost function {.. 5, If A = 0 C(A)…
A: Fixed cost is the cost which doesn't change with the level of output. And sunk cost is the cost…
Q: There are 1000 pear producers that have identical cost functions, C= 200+0.025q2 where q is the…
A: The structure of a market where there are a large number of buyers and sellers selling homogenous…
Q: +300, where p is the price in dollars. If the price, in terms of the cost c, is expressed as 352…
A: Given information:Demand, D(p) = -P2352+300P(c) = 4c - 36
Q: )A firm selling in a perfectly competitive market where the ruling price is £20 can buy inputs K and…
A: Profit refers to the gap between the total revenue and cost of a firm. Profit function: π=P*Q-TCTC =…
Q: A firm's demand function is Q = 16 – P and its total cost function is defined as TC = 3 + Q + 0.25Q2…
A: Equilibrium in economics is the state of stability and balance. Any deviation from this level will…
Q: Each firm in a competitive market has a cost function of: C= 25 + q°, so its marginal cost function…
A: In the long run, firms in perfect competition charge price equal to minimum average total cost.
Q: For a profit-maximizing price-taker firm, a reduction in the price of a good will cause the marginal…
A: Price taker firm refers to the firm which accepts the price existing in the market. Both the buyers…
Q: A firm faces a demand function (where q=quantity demanded and p=price): q = 200 – 2p and a total…
A: The firm would always result in maximizing profits by selling a quantity at a fixed price per unit…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q°. If the firm sells output in a…
A: In a perfectly competitive market at a price of $10, the firm should produce to maximize profits or…
Q: Inverse demand function for a firm is P(Q) = 100 -2q and the cost function is represented as C(q) =…
A: Given: P = 100 - 2q TC =10+2q Total Revenue (TR) = PXQ = 100q - 2q2 Marginal Revenue (MR) = dTR/dq=…
Q: Find the marginal values for functions a, b, and c given below and evaluate each at Q=100. a) C(Q) =…
A: Have you ever considered how valuable you are to your company? When requesting a raise or promotion,…
Q: The price-demand equation for the production of bluetooth speakers is: p = 250 - 1/20x, for 0 is…
A: Profit function: π =TR -TC; where π is profit, TR is total revenue and TC is total cost Revenue…
Q: A company is able to sell two products ,X and Y with demand function: PX=52-2X PY=20-3Y THE…
A: To determine the profit-maximizing levels of output for X and Y, and the level of profit, we must…
Q: (i) If the demand function for a particular commodity is p=−0.09x+51 and the total cost function…
A: Hi there! Thank you for the question. We only answer one question as per our Honor Code. Therefore,…
Q: The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis…
A: In Cournot duopoly two firms compete in quantity and maximize profit by producing at MR =MC
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
- 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?The demand function for a firm is; Qd = 122,000 - 500P + 4M +10,000PR where, Qd is quantity demanded, P is price per unit. M is income, and PR the price of a related good. The estimated the valueS of M and PR will be Rs 3200 and Rs 4, respectively. The firm's estimated average variable coSt function IS; AVC = 500 - 0.03Q + 0.000001Q2 a. Find the profit maximizing level of output of the firm and the price to charge. b. Should the manager continue production or shut down? Explain your answer. c. Find the level of output at which the average variable cost is at its minimum.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 =0.5q2 + 20q +375 Find the firm’s profit maximizing output level using the profit maximizing condition MR = MC
- Suppose the (inverse) demand for a firm’s product is given by P = 10−2Q and the cost function is C(Q) = 2Q What is the profit-maximizing level of output and price for this firm?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 8There are two different demand curves at your movie theaters. During the weekends, the inverse demand function is P=20-0.001Q, on weekdays, it is P=15-0.002Q. The marginal cost if 25,000 per movie. Determine prices for the weekends and weekdays.
- 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. (d) How many laundry sinks will the company need to produce in order to maximise it′s profits?A firm’s demand function is P= 60 − 0.5Q If fixed costs are 10 and variable costs are Q + 12 per unit, find the value of output to maximize the profit.A firm's demand and total cost function are given by the expression: P = 20 - Q/2 (1) TC = 0.5Q2 + 36 (2) Where P is price per unit in £ TC = total cost in £ Q is quantity demanded and produced. Find the profit-maximising level of output using the profit function and calculate how much profit is made at this output level.
- 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 firm in a perfectly competitive market has a fixed cost of $5 and a MC function of 9X, where X is the firm's output choice, for X = 0,1,2,3 and 4 units. The current market price of X is P = $30. In this case, the optimal X* for the firm is ______ units, and at this output, the firm faces a total cost of _____. Group of answer choices 3; $59 3; $95 4; $59 4; $95A firm has a linear demand function for it's product.When the price for the product is Sh.220,the quantity demanded is 40 units.When the price increases to Sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is given by; MC = 40Q-2Q^2+2 Fixed cost = Sh. 5 million Where Q= quantity demanded, Mc= marginal cost(cost in Sh. Million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at a maximum profit