Assume a firm's supply function for a good is given by the following expression: qs (p) = p−10 a.) where p represents the price of the good (in dollars) and qs (p) is the quantity supplied at that price. Suppose the price of the good is initially $30. If the price decreases by 1%, What is the effect on the firms total revenue?
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Assume a firm's supply function for a good is given by the following expression:
qs (p) = p−10
a.) where p represents the
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- (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?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.Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is -1.25. Then we know that: demand is inelastic. marginal revenue is $2. marginal revenue is $50. demand is unit elastic.
- Use the following general linear supply function: Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good.If PI = $20 and F = 60 what is the equation of the supply function?Group of answer choices Qs = 480 + 6P Qs = 40 + 8P P = 480 + 6Qs Qs = 400 + 6P none of the aboveFirm A and Firm B sell identical goods The total market demand is:Q(P) = 1,000-1.0P The inverse demand function is therefore: P(QM) = 10,000-10QM QM is total market production (i.e., combined production of firm’s A and B). That is: QM = QA + QB As a result, the inverse demand curve for each firm is: P(QA,QB) = 10,000-10QA-10QB The difference between this example and the example in class is that the two firms have different costs. Firm A has the same cost as in class, but firm B has a different cost function: TCA(QA) = 5000QA TCB(QB) = 5000QB Using the demand function and the cost functions above, what is firm A’s profit function? Using the profit function above and assuming that firm B produces QB, calculate what firm A’s best response is to firm B’s decision to produce QB. (Note: Firm A’s best response should be a function of QB) Using the demand function and the cost functions above, what is firm B’s profit function? Using the profit function above and assuming that firm A…A toy company is trying to determine the optimal price for their weekly supply to meet the demand for a toy they are about to release. They estimate that the supply function follows p= 0.006q^2 + 0.14q+ 8.62 and the demand function follows p= -1.25q+ 65 , where p is the price of the toy (in dollars) and q is the weekly quantity of the toy (in hundreds). If the company tries to sell the toy for $24, will there be a shortage or surplus of toys each week?
- Assume the demand function for a product is given by QD = 20,000 – 10P + 0.4I, where P = price of the product, and I = average income of consumers. Also, assume the supply function of the product is given by QS = 30P. If the market for the product is perfectly competitive, and the average income of consumers is $10,000, what are the equilibrium price and quantity in this market?Using the figure above, what is the optimal quantity of goods for the firm to produce? Using the figure above, what is the optimal price for the quantity of goods for the firm to produce? Using the figure above, what is the total revenue and the total cost for the firm? Using the figure above, what is profit/loss for the firm? ***Please answer question number 3What relationship, if any, can you detect between the facts that farmers’ fixed costs of production are large and the supply of most agricultural products is generally inelastic? Be specific in your answer.
- There are 1000 pear producers that have identical cost functions, C= 200+0.025q2 where q is the number of crates of apples produced. The producers operate in a perfectly competitive market. The supply curve of each producer is ________ The total supply curve for the market is ________ At a price of 100, the elasticity of supply for the market is _________, meaning that supply is _________ For the answer options, refer to the attached image.The demand function for x is D(p) = 65 - 2p and the supply function is S(p) = 20 + p. What is the price that should be set to restrict the quantity supplied to 30 units?A firm faces the following linear inverse demand for its product P = 60 - 2Q. a) Find the firm's total revenue function TR (Q). b) Find the expression for the firm's marginal revenue. c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price?