A firm has marginal revenue MR(x)=3x and marginal cost AC(x)=1/3x^2 Find the profit obtained by the firm for production level between the starting point and the point when MC(x)=MR(x)
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A firm has marginal revenue MR(x)=3x and marginal cost AC(x)=1/3x^2 Find the profit obtained by the firm for production level between the starting point and the point when MC(x)=MR(x)
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- A competitive firm uses two variable factors to produce its output, with a production function y = min{ x1, x2 }.The price of x1 is w1 = $8 and the price of x2 is w2 = $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x1. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount? please solve asap?A competitive firm uses two variable factors to produce its output, with a production function y = min{ x1, x2 }.The price of x1 is w1 = $8 and the price of x2 is w2 = $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x1. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?To minimize costs in the short run, a firm should operate where which of the following optimizing conditions is true? Marginal productivity of labor is at a maximum Marginal product relative to own price of every input is equal Marginal revenue product of the variable input equals its marginal cost
- A firm’s objective is to Maximize Profits and Minimize Costs. Demand is Q = 600 – 3*P. The firm’s production function is Q = 5*L.6*K.5. Total Cost is TC = PL*L + PK*K = $12*L + $6*K. The objective is to maximize Profit. Find the Profit-Maximizing output. At the profit-maximizing solution, K =?(i) If the demand curve for a particular commodity is p = −0.09x + 51 and the total cost function C(x) = 1.32x2 + 11.7x + 101.4,where x is the level of production. Find: 1. All values of x for which production of the commodity is profitable.A company has the following cost functions in the short run, where the production level, Q , is measured in ‘000s of units:TC = 0.5Q^3 − 2Q^2 + 5QFC = 7(i) Calculate the optimum output level for this company in the short run.(ii) Calculate the marginal cost for this company at a production level of 3000 units
- A competitive firm has a single factory with the cost function C(q) = 3q2 + 62 and produces 25 units in order to maximise profits. Although the price of output does not change, the firm decides to build a second factory with the cost function C(q) = 7q2 + 44. To maximise its profits, how many units should it produce in the second factory?The demand equation of a certain product is p=90-q-q². The total cost function is c=50+q-0.1q². Find the profit function. Simplify your answer as much as possible.A firm has the following Cobb-Douglas production function: q=(L^α)(K^1-α)0<α < 1 is a parameter. Suppose in the short run K = 1. The rental rate of a unit of K is $10, and the wage rate of a unit of L is $20.(a) Derive the marginal cost of the firm (expressed in terms of α and q).(b) Derive the average variable cost of the firm (expressed in terms of α and q).(c) Derive the cost function of the firm.
- 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. (c) If production increases continuously, what is likely to be the average cost per sink?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 unit price of a product is given by P(X) = 200 - 0,01X and the total cost function C(x) = 50X + 20.000 How many items should be sold to maximize profit?
