Assume you are the manager of a firm that produces a unique pair of rainbow shorts. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for these shorts are Q=100−2P; C=40+2Q2. What are the levels of quantity and price when you are maximizing profits?
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Assume you are the manager of a firm that produces a unique pair of rainbow shorts. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for these shorts are Q=100−2P; C=40+2Q2.
What are the levels of quantity and
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- Assume you are the manager of a firm that produces a unique pair of rainbow shorts. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for these shorts are Q=100−2P; C=40+2Q2.What are the levels of quantity and price when you are maximizing profits?The demand function for small high-definition televisions is given by p = 9,000 − 55x, where p is the price, in dollars, that x televisions can be sold. The cost function (in dollars) to produce televisions is C = 3,500x + 2,000. (Simplify your answers completely.) (a)Find the revenue function, R. R = (b)Find the profit function, P. P = (c)Find how many televisions should be sold to maximize profit. televisions (d)What is the maximum profit (in dollars)? $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?
- News reports from the western United States occasionally report incidents of cattle ranchers slaughtering many newborn calves and burying them in mass graves rather than transporting them to markets. Assuming that this is rational behavior by profit-maximizing "firms," explain what economic factors may influence such behavior. Justify your answer.(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.Question A Suppose the short-run production function is q = 1L0.5. If the marginal cost of producing the 10th unit is $8, what is the wage per unit of labor? Question B A consumer has the utility function U(q1,q2) = q10.5 + q2Assume p2 = 1 and Y = 100. What is the equivalent variation of a price increase for good 1 from 1 to 4?
- 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 3The total cost function will be given by Total Cost = 200 + 2Q + 0.01 Q^2 and demand function is Q = 1000 - 0.02 p, where p is a price. Find the demand Q at which Total net benefit is maximized. Find the associated values of price, total net benefit, profit, and consumer surplus.The market price a perfectly competitive firm has to take is pm and the total cost to the firm is TC(Q)=aq+Bq2 +y , where y is fixed cost of the firm . Find the optimal output to the firm in terms of market price pm. Express also maximum profit. How does maximum profit depend on the market price and the level of fixed cost? All parameters are assumed to be positive.?
- 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.Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $10, what level of output should the firm produce to maximize profits or minimize losses? What will be the level of profits or losses if the firm makes the optimal decision?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.
