A firm faces the demand schedule p = 120 - 3q and the total cost scheduleTC = 120 + 36q+1.2q²a. Write out the total revenue (TR) function in terms of q.b. Find the marginal revenue function.Find the marginal cost function.d.Find the profit-maximizing output using information in parts (a), (b) and (c) above.e. Write down the firm's profit function (). Simplify.f.Use the profit function to find the profit maximizing output.g. Verify that your answer in part (f) is a maximum.h. What is profit at the profit-maximizing output?

We have given demand curve p=120-3q And total cost, TC = 120+36q + 1.2q2

A firm faces the demand schedule p = 120-3q and the total cost schedule TC = 120 + 36q+1.2q² a. Write out the total revenue (TR) function in terms of q. b. Find the marginal revenue function. C. Find the marginal cost function.

A firm faces the demand schedule p = 120-3q and the total cost schedule TC = 120 + 36q+1.2q² a. Write out the total revenue (TR) function in terms of q. b. Find the marginal revenue function. C. Find the marginal cost function.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 3E

See similar textbooks

Related questions

Q: Consider a portion of the demand for eggs. Quantity Demanded (in dozen) Price per Dozen (in pesos)…

A: Price elasticity of demand states thatpercentage change in quantity demanded due to percentage…

Q: 2. What is the difference between simple interest and compound interest? Which is more expensive?

A: Answer: Simple interest: simple interest is calculated on the principal amount each period. Here the…

Q: The following diagram illustrates the cost and revenue curves of a monopolistic competitive firm.…

A: Optimal profit occurs when Marginal Revenue is equal to the Marginal Costs. The marginal Revenue and…

Q: Consider the game table in Question 2. Find a mixed-strategy Nash equilibrium in which each player…

A: Given:

Q: The aggregate production function exhibits diminishing constant increasing negative returns to…

A: Aggregate production function shows the relationship between the total physical productivity depend…

Q: Consider the following normal form game Player 2 L R. Player 1 M U 5, 4 4, 5 3,8 8,3 5,5 6,3 0,8 8,0…

A: So we will list down all actions given the other player's actions: If Player 2 chooses L then…

Q: If a bank has total deposits of $9,000,000 and reserves of $3,000,000 Instructions: Enter your…

A: Reserve requirements are the sums of money held in reserve by a bank to ensure that it can meet its…

Q: Specific Instructions: Solve each problem NEATLY and SYSTEMATICALLY. Show your COMPLETE solutions,…

A: The rate of interest is the amount that a lender charges a borrower for the use of assets on top of…

Q: Imagine that two identical countries have restricted imports to identical levels, but one has done…

A: Quotas and tariffs are some of the tools used by countries for restrictive trade activities. The…

Q: Suppose the price elasticity of demand for orange juice equals -0.8. If there is a 10% increase…

A: Price elasticity of demand : Ed = (-) % change in quantity demanded% change in price

Q: rights refer to the range of laws, rules, and regulations that define rights for the use and…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Q2/choose the right answer 1- I _work very hard because I have an exam next week. A) am having B)…

A: 1. The answer is - D) have to Hence, I have to work very hard because i have an exam next…

Q: firm’s MC = AVC, and at Q = 30 its MR = AVC. Thus, the firm’s profit maximizing output must be…

Q: For each of the regions listed in the following table, use the midpoint method to identify if the…

A: The correct answer is given in the second step.

Q: Given below are the demand and supply functions for three interdependent commodities Qd1 = 40 – 2P1…

Q: If the demand for widgets is Qd = 90 - Pd and the supply of widgets is Q = Ps - 30, what is the…

A: The demand for widgets is Q_{d} = 90 - P_{d} and the supply of widgets is Q_{s} = P_{s} - 30

Q: an inward shift of the demand curve in the competitive market for paper clips. Using fully labeled,…

A: Answer: Suppose initially the market is at a long-run equilibrium level. Now if the demand falls and…

Q: Assume you can invest in 2 projects whose payoff depend on the state of the economy. The profits…

A: We have two states of recession and no recession with probability 0.5 and 0.5 each.

Q: Which of the following best describes the term annual health insurance deductible? A. the amount…

A: A deductible is a sum that a policyholder needs to pay before the insurance agency begins paying.…

Q: check all that apply; a change in ___ will cause a shift in the entire supplu curve input prices…

A: Supply curve shows the different combination of price and quantity supplied. Its upward sloping…

Q: Suppose the elasticity of demand equals -0.5. If a company decreases prices by 10%, quantity…

A: Elasticity of demand measures the responsiveness of quantity demanded to changes in price level.

Q: What is the marginal cost forumla for TC= 10+5Q?

A: We know well that the Marginal cost is given as the ratio of change in total cost by change in…

Q: Consider a portion of the demand for eggs. Quantity Demanded Price per Dozen (in dozen) 700 (in…

A: Ans. 1. Using the mid-point method for calculating the price elasticity coefficient as we need to…

Q: How should social and economic inequalities be governed?

A: (Q) How should social and economic inequalities be governed?

Q: One concern with the stakeholder model of business activity is that we can define "stakeholder" in…

A: A stakeholder is a party who has a significant interest in a company and can either affect or be…

Q: Following up on the preceding question, instead of assuming Ming has "standard-looking indifference…

A: The income effect outweighs the substitution effect for inferior goods. When the price of a good…

Q: (47). If the federal budget were balanced annually O. monetary policy would become the chief tool…

A: Since you have asked multiple question, we will solve the first question for you . If you want any…

Q: The associated estimates are summarized below: $75,000 nnual receipts nnual expenses $45,000 seful…

A: *Answer:

Q: A man save P 150,000 in a fund that earns 14% compounded quarterly. This saving for the future…

A: As given present worth = 150000 Interest rate = 14% compounded quarterly Future worth = 594000 P =…

Q: Suppose the following equations reflect a particular economy. C = 15 + 0.9(Y – T) I = 5 - 3r G = 5,T…

A: Answers Consumption spending: C = 15 + 0.9(Y – T) Government purchases: G = 5 Taxes: T = 6…

Q: Many schemes for price discrimination involve some cost. For example, discount coupons take up the…

A: Monopoly may be a situation where there's one vender within the market. In conventional economic…

Q: Firms compensate workers with "benefits" in addition to wages and salaries health insurance. Suppose…

A: Note - As per guidelines we answer three parts at one time. Kindy reposts the other parts. a.…

Q: Gross Revenue = 9.5 M Operating expense = 4M Nominal interest rate = 12% Ongoing inflation rate = 8%…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first threr subparts as per…

Q: Can someone explain to me what is the difference between deriving a demand curve for perfect…

A: A demand curve is a plot of the relationship between the price of a product and the quantity…

Q: Indicate whether the statement is TRUE, FALSE, or UNCERTAIN and explain why. Answer 1 & 2 1. If a…

A: The curve that depicts various quantities of goods and services being supplied by firms at various…

Q: The price index was 220 in one year and 238.2 in the next year. What was the inflation rate? a) 8.3…

A: Answer; Correct option is (a)

Q: 13. General Electric Company which manufactures electric motor has a capacity of producing 150…

A: * SOLUTION :- (13)

Q: Once you have defined the words above, draw the following comparisons: 1. How is a fixed interest…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose the government imposes a luxury tax on very expensive jewelry. This tax follows the ________…

A: Given : Government Imposes a luxury tax on expensive jewelry.

Q: There are two countries in the world: Happytimes and Treehausland. Both countries currently have a…

A: Happytimes's GDP = Current GDP(1 + Growth rate)^15 = 1*(1 + 0.086)^15…

Q: CHECK ALL THAT APPLY: A change in input prices the price of a complement good consumer income…

A: Supply: Supply for a commodity can be defined as the number of goods and services that are being…

Q: с. $20,000 for 5 years @2.25% annual interest, compounded monthly.

Q: Assume the nominal tariff rate on the imported input is 0.16 and the nominal tariff rate on an…

A: Given Nominal tariff rate on imported input ti = 0.16 Nominal tariff rate on imported final product…

Q: hy does the aggregate demand curve slope downward and what causes the AD curve to shift?

A: The aggregate demand curve depicts the demand pattern existing in the economy.

Q: From the information given in the precedi question (in which Ming views X and Y as perfect…

A: When the two goods are perfect complements, they are consumed together by the buyer.

Q: An unmarried, recent engineering graduate of Utech earned $52,000 during the previous tax year. The…

A: Income tax is a kind of tax levied by governments on the earnings of businesses and individuals…

Q: Do the benefits of globalization outweigh the costs

A: Globalization is defined as the integration of different economies of the world through trade of…

Q: Assume you are managing a one-year project and have listed the project earned management value as…

A: Cost variance = Earned value - Actual value = $22,000- $$27,000 = -$5000 As cost variance is…

Q: Winner-take-all markets Multiple Choice explain why American CEOS make so much less money than their…

A: A winner-takes-all market is an economic system in which the best performers rise to the top at the…

Q: Mr. Juan dela Cruz borrowed P 1,000 and was able to sign a promissory note that he would pay P…

A: Given Borrowed amount = 1000 Time = 4 years Future worth = 2032.79

Question

A firm faces the demand schedule p = 120 - 3q and the total cost schedule
TC = 120 + 36q+1.2q²
a. Write out the total revenue (TR) function in terms of q.
b. Find the marginal revenue function.
Find the marginal cost function.
d.
Find the profit-maximizing output using information in parts (a), (b) and (c) above.
e. Write down the firm's profit function (). Simplify.
f.
Use the profit function to find the profit maximizing output.
g. Verify that your answer in part (f) is a maximum.
h. What is profit at the profit-maximizing output?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Consider the following price-demand function: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} (i) Sketch the price-demand function(ii) Find the revenue function.(iii) Suppose C = 20 + 5Q , find the profit function(iv) Calculate the profit if Q=8(v) Find the break-even level of output
Consider the following price-demand function: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} (i) Sketch the price-demand function(ii) Find the revenue function.(iii) Suppose C = 20 + 5Q , find the profit function(iv) Calculate the profit if Q=8(v) Find the break-even level of output You have to solve iv and v
The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q +20 + 400/q, where q is the firm's output (1) Determine the level of output for which the firm's profit is maximized
A firm has revenue given by R(q) = 160q - 3q2 and its cost function is C(q) = 500 + 40 Q What is the profit-maximizing level of output? What profit does the firm earn at this output level? The firm maximizes profit by producing q = _______. (Enter your response as a whole number.) Corresponding profit is pi = $_________. Enter your response as a whole number).
The college textbook market is a very profitable segment for global book publishers. Assume that ABC publisher’s best-selling economics textbook has this demand curve: P = 150 - Q, where Q denotes yearly sales (in thousands) of books. The cost of producing and shipping each additional book is $40, and the publisher pays a $10 per book royalty to the author. The publisher’s overall annual promotion spending entails an average cost of about $10 per book. a. Find ABC’s profit-maximizing output and price for the economics textbook. b. Another publisher has raised the price of its best-selling economics text by $15. Would you follow suit (that is, would you match the price increase for your textbook)? Explain briefly why or why not. [Hint: construct the new demand curve, taking into account the price hike and recalculate P* and Q*] c*. To save on fixed costs, ABC plans to contract out the printing of its textbooks to outside vendors. Obviously, this would entail a higher printing cost for…
The total revenue curve of a firm is R(q) = 40q − 12q^2 and its average cost A(q) =1/30q^2− 12.85q + 20 + 400/q ,where q is the firms output. (I) Determine the level of output for which the firm's profit is maximized. (ii) What is the firm's maximum profit?
"A profit maximizing firm seeks to produce at an output where its marginal revenue is equal to its marginal costs." Agree or disagree with this statement.
A firm has the following demand and average total cost functions: Q = 30 − PATC =7/Q− 6 +1/2 Q Find the level of output that will maximize revenue and minimize total cost and the profit function and the level of output that maximize profits
The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q +20 + 400/q, where q is the firm's output (1) Is the rate of change of profit increasing or decreasing when the output level of the firm is 10 units
The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q +20 + 400/q, where q is the firm's output (1) What is the firm's maximum profit
please solve question 4- Prove that total revenue is maximized for a linear demand function, P = a - bQ point where Q = a / 2 * b . - Minimize the following cost function: TC = 1/3 * Q ^ 3 - 8.5Q ^ 2 + 60Q + 27
Consider the following problem: Demand: q = 100-p Retailer: marginal cost of selling r = 10 per unit Manufacturer: marginal cost of producing = 40 per unit Neither firm faces any competitor Suppose now that the retailer and the manufacturer are separate firms. Write down the profit function of the manufacturer if it sells to the retailer at w. You solved for the quantity the manufacturer will sell a minute ago, so you can use that in the profit function, and then you will have a profit function for the manufacturer that does not have p, but only has w in it. Solve for the optimal w for the manufacturer to charge and calculate the quantitysold under that w.