A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. 1. What is the price function of demand of the firm? 2. What is the total revenue function of the firm?

A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. 1. What is the price function of demand of the firm? 2. What is the total revenue function of the firm?

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

Chapter12: More Realistic And Complex Pricing

Section: Chapter Questions

Problem 4MC

See similar textbooks

Related questions

Q: Question 2 For each of the events describe below, you are required to explain: 1. The market you are…

Q: Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm…

A: The following calculations are done below.

Q: France has the largest long-run elasticity of oil demand (–0.6) of any of the large, rich countries,

A: The long-run elasticity of oil demand in France is more than any other large rich nation. This…

Q: Please explain why true or false. 1. Total revenue is maximized when the price elasticity of supply…

A: Q1 and Q2: The elasticity of demand is a measure of sensitiveness of quantity demanded because of…

Q: A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8…

A: Note:- Der Learner you have posted a question with multiple sub parts, as per our policy we have…

Q: Q4. Suppose the monthly demand function of a certain firm is Q = 300- 4P. The total cost function…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Demand P (q)=500-2q Total Costs C(q)=10+20q . what is marginal cost marginal revenue of this demand…

A: Marginal cost is a cost that arises when firms produce one more unit and is calculated by…

Q: The weekly demand function for a particular product is q=f(p)=2400-15p. Where q is stated in units…

A: Solution: a) Calculation of quadratic total revenue function: Quadratic total revenue function: It…

Q: A firm sells its product in two different markets. The inverse demand in market A is PA = 72 - 5QA…

A: Profit maximizing quantity is where marginal revenue (MR) is equal to marginal cost (MC).

Q: Suppose the Demand for baseballs is given by Q=120 - 4P. a) What is the price elasticity of demand…

A: Marginal revenue is a central concept in microeconomics that describes the additional total revenue…

Q: The graph to the right shows the profit, P(x), given by the red dashed line, the revenue R(x), given…

A: Any profit maximizing firm will sell at a price where it can earn maximum revenue. That is the point…

Q: A movie production company faces a linear demand curve for its film and it seeks to maximize total…

A: Demand curve is elastic in the upper half, unitary elastic at the center and it is inelastic at the…

Q: The demand curve for product a is given as Q = 2000 - 20P. What will be the total revenue at a…

A: Note: Since you have posted question with multiple sub-parts, we will solve the first the first…

Q: Attached Question:

A: Given Information: Demand function Qd = 252-4P Supply function Qs = 172 To find out the consumer…

Q: d) Consider a demand curve given by P = AQ 0.25 where P and Q represent price and quantity demanded…

Q: The demand curve for product a is given as Q = 2000 - 20P. How many units will be sold at $10? At…

A: Note-Since you have posted a question with multiple subparts, we will solve the first three subparts…

Q: . A firm faces the following average revenue (demand) curve: P = 120 − 0.02Q where Q is weekly…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: A company manufactures two types of typewriters–electrical (E) and manual (M). The revenue function…

A: Given: R(E,M)= 8E+5M+2EM- E2-2M2+20 ∂R∂E=8+2M-2E∂R∂E=0-2M+2E=8------(Equation…

Q: Maximizing Revenue The price p (in dollars) and the quantity x sold of a certain product obey the…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: In a perfect competition type of market; price is $250.00, quantity is 10,000, lump-sum tax is…

A: Perfect competition is a market form wherein the firms produce and sell homogenous goods and…

Q: Q10. Given the supply and demand functions: P = 10 + 2Q, P = 30 – Q Which of these statements are…

A: Given; Demand function; P=30-Q Supply function; P=10+2Q At equilibrium;…

Q: At what quantity does the firm break even? 4. Calculate the price elasticity of demand at the…

A: Demand Function: P = 40 – 1.5q TC=q2+10q+50

Q: 13) Assume that the price, in dollars, of a sound system is given by 1000 + 1000 = d q? Where q…

A: We have given demand function of a firm who is selling a sound system in a market.

Q: ▼ What must be true about a demand function q(p) so that, at a price per item of p = $100, revenue…

A: Demand refers to the quantity of a product that consumers are able and willing to buy at different…

Q: The price elasticity of demand for a firm’s product is equal to –1.75 over the range of prices being…

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

Q: 3. The supply and demand for product A at different price levels are given. Price Demand Supply 3 34…

A: We are going to derive the demand and supply function to answer this question.

Q: 2. After a careful statistical analysis, the Chidester Company concludes the demand function for its…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 53. A vertical supply curve parallel to the price axis implies that the elasticity of supply is

A: To find : Elasticity of supply.

Q: What are the factors that will affect the total revenue?justify your answer

A: Total revenue is the total amount of money a company brings in from selling its goods and services.…

Q: Draw a non-linear supply curve which is elastic at lower price levels, unit elastic at moderate…

A: The supply function expresses the units of a commodity that the producers are willingly to…

Q: Demand, Marginal Cost, Marginal Revenue and Average Total Cost curve in one graph. Identify the…

A: a. Below graph shows the MC, MR, ATC and demand. Here, Profit maximizing price level is = P The…

Q: Real estate is said to have inelastic short-term supply and elastic long-term supply. Explain why…

A: Elasticity is a term used in economics to describe the change in the aggregate quantity demanded of…

Q: The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q −…

A: Revenue is the product of price and quantity. To get revenue function, first derive the inverse…

Q: Suppose the revenue (in dollars) from the sale of x units of a product is given by R(x) = 56x2 +…

A: R(x) = (56x2 +65x)/(2x+2)

Q: . Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the…

A: Elasticity of demand depicts how much consumer responds with the change in price.

Q: d) Consider a demand curve given by P = AQ 0.25 where P and Q represent price and quantity demanded…

A: We have given demand function P=AQ-0.25. TR= P*Q MR= dTR/dQ

Q: The demand and supply equations for product A are given by the following equations: P = 40 – 5Q P =…

A: A) "Equilibrium is attained at a point where demand equation equates supply equation." As per the…

Q: The equation for total revenue for a particular product when Q items are produced is: TR = -11x2 +…

A: The elasticity is the ratio of the percentage change in quantity demanded because of the percentage…

Q: Suppose that a firm operates with the total cost function TC(Q) = 20+0,5Q4 and demand fucntion P(Q)…

A: An cost function is a numerical equation used to used to outline how production costs will change at…

Q: Solve step by step please If ? = −0.5? + 450 is a demand equation, where ? is the price of the good…

A: Demand Equation P = -0.5Q + 450 To find the Marginal revenue function, find the TR Total revenue =…

Question

A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%.

1. What is the price function of demand of the firm?

2. What is the total revenue function of the firm?

3. At what production output should the firm produce to maximize its total revenue?

Video Video

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

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

The price p (in dollars) and the quantity q sold of a certain product obey the demand Equation : q = 800 - 20p and 0 ≤ p ≤ 40 Express the revenue R as a function of q. What is the revenue if 20 units are sold? What quantity q maximizes revenue? What is the maximum revenue? What price should the company charge to maximize revenue? What price should the company charge to earn at least $3500 in revenue?
A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. 1. How much would be the maximum total revenue of the firm? 2. What is the demand function of the firm? (Use the variable Q for the quantity demanded and the variable P for the price; no currency; use fraction form for the slope) 3. What is the marginal revenue function of the firm? (Use the variable Q for the quantity and the variable MR for the marginal revenue; no currency)
(a) if a company has total cost c(x)= 24,000+15x+0.2x^2 on total revenues given by R(x)=395x-0.8x^2, find the break even point? (b) if the supply function for a commodity is p= q^2+4q+16 on the demand function is p= -3p^2+ 2q+ 436, find the equilibrium quantity and equilibrium price?
The demand curve for product a is given as Q = 2000 - 20P. How many units will be sold at $10? At what price would 2,000 units be sold? 0 units? 1,500? Write equations for total revenue and marginal revenue (in terms of Q). What will be the total revenue at a price of $70? What will be the marginal revenue? What is the point elasticity at a price of $70? If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now? At what price would elasticity be unitary?
Draw a non-linear supply curve which is elastic at lower price levels, unit elastic at moderate price levels and inelastic at higher price levels. Explain why this kind of supply curve shows behavior of firms dealing with issues of capacity utilization at their factories in response to price changes. Given that demand for wheat is inelastic, show graphically and explain in detail how an improvement in farming technology which increases wheat production can reduce income of farmers. Explain why OPEC has been unable to keep prices of oil high in the long run, based on the changes in demand and supply elasticity of oil.
Your firm has previously modeled revenue for your local production line. Given that total revenue is equal to price (P) times quantity (Q), you wish to estimate the level of production at which revenue is maximized. You know that market demand is equal to: Q = 486 - 4P Find the level of production to the first decimal point that maximizes total revenue.
A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. At what price should the firm sell its product to maximize its total revenue?
The price of a product is expressed as p, PHP = 10 – 28D where D is the demand. Which of the following correctlyexpresses the total revenue? A. 10 − 28D^2 B. 28D = 10 C. 10D − 28D D. 10D −28D^2
Consider the computer software industry. Assume [i] labor is responsible for 80 percent of production costs, [ii] software is produced with ﬁxed factor proportions (no capital-labor substitution), [iii] there are no agglomeration Chapter 5 Urban Growth 115 economies, [iv] any change in production cost is passed on to consumers in a higher price, and [v] the price elasticity of demand for software is −1.50. Suppose the wage of software workers increases by 20 percent. a. The price of software will increase by percent, and the quantity of software demanded will by percent. b. The quantity of software labor demanded will by percent. c. The elasticity of demand for software labor is , computed as. . . . d. If assumption [i] is relaxed, the demand for software labor would be [more, less] elastic because. . . .
The demand curve for product a is given as Q = 2000 - 20P. a. How many units will be sold at $10? b. At what price would 2,000 units be sold? 0 units? 1,500? c. Write equations for total revenue and marginal revenue (in terms of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue? e. What is the point elasticity at a price of $70? f. If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now? g. At what price would elasticity be unitary?
The demand and supply equations for product A are given by the following equations: ? = 40 − 5? ? = 10 + 2.5? A. Compute the price elasticity of demand at equilibrium B. Compute the price elasticity of supply at equilibrium C. What is the marginal revenue at equilibrium
Supply and Demand The supply function for a product is given by p = q2 + 500 and the demand function for this product is p = 1124 - 40q, where p isthe price in dollars and q is the number of hundredsof units. Find the price that gives market equilibriumand the equilibrium quantity