A firm has the following benefits and costs equations: B(Q) = 450Q - 26Q² and C(Q) = 126 + 18Q² Q that maximizes NB? The maximum net benefit is (profits)? Q that max TB? The profits that max TB? The results above indicate that: A. Profits are maximized at Q that max TB B. Profits at max TB > profits at max NB C. Profits at max TB < profits at max NB D. None of these statements is correct.

A firm has the following benefits and costs equations: B(Q) = 450Q - 26Q² and C(Q) = 126 + 18Q² Q that maximizes NB? The maximum net benefit is (profits)? Q that max TB? The profits that max TB? The results above indicate that: A. Profits are maximized at Q that max TB B. Profits at max TB > profits at max NB C. Profits at max TB < profits at max NB D. None of these statements is correct.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.4IP

See similar textbooks

Similar questions

You cannot equate coffee roaster explicit costs with coffee farmers’ explicit benefits, despite coffee roasters paying the farmers for their beans. What are some of the factors that account for this discrepancy? Why does the roaster care about the profitability of the coffee farmer? Why would they offset their reduced production costs by increasing the amount they pay to farmers?
Use the function below (whose parameters qualify it as a STC function) to answer the questions. See the text p. 244 for a representative figure. STC = 600 + 100Q - 7Q2 + .2Q3 a. Find the value of Q at which AVC is a minimum. b. Is productive efficiency at this value greatest or least? c. Demonstrate that the value of SMC equals the value of AVC at the value of Q where AVC is a minimum. Hint: The level of Q you found in (f) is where AVC is a minimum. If you plug this level of Q into AVC (see c) and also into MC (see d) the two outcomes should be the same if SMC crosses AVC at this level of Q. d.Why does the derivative of Short Run Total Cost (STC) equal the derivative of Total Variable Cost (TVC)? Stated another way, why does dSTC/dQ = dTVC/dQ? Explain in a couple of sentences (Hint: See Truett page 235 and footnote 16). e. Find the value of Q where increasing returns ceases and diminishing returns begins. Hint: Diminishing returns…
Electrical Components Profit A company’s dailyprofit from the production and sale of electrical components can be described by the equation P(x) =6.45x - 2000 dollars, where x is the number of unitsproduced and sold. What level of production andsales will give a daily profit of more than $10,900?
A decision maker wishes to minimize the cost of producing a given level of total benefit B = 288. The cost function is C = 6x + 3y. And the total benefit function is B = xy. Set up the Lagrangian and then determine levels of x and y at the minimum level of cost. What is the minimum value of cost?
A decision maker wishes to minimize the cost of producing a given level of total benefit. B=288. The cost function is C=6x+3y and the total benefit function is B=xy. Set up the Lagrangian and then determine levels of x and y at 5he minimum level of cost. What is the minimum value of cost?
What happen to salaries and wages when you are in a production/manufacturing business that you want to operate on and on for many production cycles? a. it will either be a variable and/ or fix cost b. it becomes fixed cost c. It becomes variable cost d. it is an operating expense When there are 3 indifference curves in a graph, what ideal point is desired? a. a point where budget and satisfaction coincides with each other b. a point that is within the highest budget line c. point that is within the highest indifference curve d. the point where there is satisfaction yielded An example of business that is servicing a captive consumers as there is an absence of choices to serve them. a. Duopoly b. Monopsony c. Monopoly d. Oligopoly
Let say you have 3 products: cake, candy, and bread. The revenue per cake is $8. The revenue per candy is $4. The revenue per bread is $5. Define the number of cake, candy, and bread you are about to produce per day as x, y, and z respectively. The manager wants that the number of candy is at least equal to the total number of cake and bread. What is the correct linear constraint to show this? Group of answer choices z – x – y ≥ 0 x – 2y – z ≥ 0 y – x – z ≥ 0 x – y – z ≥ 0
The cost of building an office complex, x floors high, in a prime location in Accra is made up of three components: GH¢10 million for the land GH¢1/4 million per floor Specialized costs of GH¢10000x per floor. How many floors should the office complex contain if the average cost per floor is to be minimized? 2) The demand and total cost functions of a good are respectively and Find expressions for TR, (profit) , MR, and MC in terms of Q. Solve the equation and hence determine the value of Q which maximizes profit. Verify that, at the point of maximum profit, MR=MC. 3) A monopolistic producer of two goods, 1 and 2, has a joint total cost function where and denote the quantity of items of goods 1 and 2, respectively that are produced. If P1 and P2 denote the corresponding prices then the demand equations are Using the Lagrange multiplier approach, find the maximum profit if the firm is contracted to produce a total of 15 goods of either type. Estimate the new…
A firm orders 12, 30 and 25 items of goods G1, G2 and G3. The cost of each item of G1, G2 and G3 is $8, $30 and $15, respectively.(a) Write down suitable price and quantity vectors, and use matrix multiplication to work out the total cost of the order.(b) Write down the new price vector when the cost of G1 rises by 20%, the cost of G2 falls by 10% and the cost of G3 is unaltered. Use matrix multiplication to work out the new cost of the order and hence find the overall percentage change in total cost.
Please provide detailed explanation on your arrival at your answers. I cannot achieve proper answers. For each of the following functions: identify the appropriate objective function. identify all critical points determine whether these critical points represent local maxima, local minima, saddle points, or inflection points z = 3x2-xy+2y2-4x-7y+12 (for this question, we're thinking of a firm selling two products ("good 1" and "good 2") Q1 = 14 - 0.25P1 Q2 = 24 - 0.5P2 TC = Q12+5Q1Q2+Q22 (pi) = 25x-x2-xy-2y2+30y-28
If a manager chooses the amount of an action that sets the marginal benefit of the action equal to its marginal cost, then i. all the units for which the marginal benefit exceed the marginal cost are undertaken. ii. none of the units for which the marginal benefit is less than the marginal cost are undertaken. A. Only ii is correct. B. Only i is correct. C. Both i and ii are correct. D. Neither i nor ii are correct.
Focusing only on transportation costs, if a firm pays both the costs of transporting inputs to its plant and the finished product to its customers, the profit maximizing plant location A. minimizes the sum of the two transportation costs. B. can be anywhere between the location of the inputs and of the customers because the firm pays both sets of transportation costs. C. must always be closer to the location of the inputs because transporting inputs is always more expensive than transporting finished products. D. None of the above answers are correct.