Suppose that the marginal revenue for firefighting protective clothes is MR = 337.5 4x and themarginal cost is MC = 3.5x + 15 with a fixed cost of $295. Assume R(0) = 0.b) Find the revenue function.R(x)==c) Find the cost function.C(x) =d) What is the maximum profit (to the nearest dollar)?The maximum profit is

Answered: Image /qna-images/answer/c01e9a0c-6621-4bc6-a158-1c1ec354f7a3.jpg

Answered: b) Find the revenue function. R(x)= c)…

b) Find the revenue function. R(x)= c) Find the cost function. C(x) = d) What is the maximum profit (to the nearest dollar)? The maximum profit is

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

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

See similar textbooks

Related questions

Q: Mf4 Under MACRS, a commercial building is depreciated: Using the 150% declining balance method…

A: MACRS represents the Altered Sped up Cost Recuperation Framework. IRS Income Technique 87-56,…

Q: Ike's Ice Cream has decided to open a new ice cream parlor in Mayville, MS. The market for ice cream…

A: Monopolistic competition refers to a market model wherein several companies offers differentiated…

Q: 55 50 45 40 35 30 25 20 15 10 O 50 10 20 30 40 50 60 70 80 90 100 The government imposes a price…

A: Producer surplus refers to the producer welfare; and will be computed as a difference between the…

Q: Explain why Manufacturers use wholesalers instead of dealing directly with retailers

A: The terms retailer and wholesale have a substantial difference. Retail focuses on the sale of lesser…

Q: The table above shows Econland’s economy aggregate demand and aggregate supply schedules. Econland’s…

A: Aggregate demand (AD) depicts the inverse relationship between the price level and real GDP…

Q: In 2021 ABC government has a nominal budget deficit of $1000 billions with inflation rate 3%, and…

A: Nominal value includes the effect of inflation. Real value doesn't include the effect of inflation.…

Q: A: Suppose the initial demand at the price of $10 was 100. When the price rises to $12, the demand…

A: Price elasticity of demand is calculated as the ratio of the percentage change in quantity demanded…

Q: 5. ConnBank has made two types of loans-A and B-each has the principal of $1. The probability of…

A: Expected value (EV) explains the long-run average level of a random variable based on its…

Q: With a certain medical insurance policy, the customer must first pay an annual $350 deductible, and…

A: Given that First, pay on annual deductible = $350 Percentage of the cost of x - rays = 70% First…

Q: Assume that the sacrifice ratio in the Philippines is 3, the unemployment rate is at its natural…

A: The sacrifice ratio denotes the amount of GDP that must be sacrificed in order to decrease the…

Q: Real GDP Increases With 5%, How Will The GDP Deflator... Change?

A: First let's understand what does real GDP and nominal GDP means. That is:- (1) Nominal GDP = Nominal…

Q: If in the figure above price P1 equals $3.00, price P2 equals $14.00, price P3 equals $30.50, and…

A: The term "consumer surplus" refers to the difference between the utmost price a consumer is prepared…

Q: Problem Find all pure-strategy pooling and separating perfect Bayesian equilibria in the following…

A: In the above game there are two players : Player 1 & 2 Strategy Set of Player 1 : { L , R }…

Q: Consider the following finitely repeated date game. Write down a subgame perfect equilibrium. You…

A: Subgame perfect equilibrium is the refinement of the Nash equilibrium for the dynamic game. Nash…

Q: Using the following question: "Is the value of the final goods determined by the factors of…

A: The factors of production refer to the various resources like land, labor, capital, etc. that are…

Q: Describe the primary areas of Kanto Region's infrastructure and the features it possesses

A: Kanto Region is situated in the eastern part of Honshu Japan. It is sometimes referred to as the…

Q: Consider the following economy C=1000+0.4(Y-T) 1=500 T=400 G=300 What is the investment of…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export in an…

Q: 6. Consider a hypothetical economy that has the production function Y = F (K, LE) = K¹/³ (LE) 2/3,…

A: Solow's economic model explains the impact of any technological change on capital accumulation for a…

Q: Om1. 1. ______ capital is the sum of the resources a person possesses as a result of investments in…

A: ***Since the student has posted multiple questions, the expert is required to solve only the first…

Q: SALES ($1,000s) 11 14 16 10 15 17 11 MONTH SALES ($1,000s) January February March April May June…

A: Given , Sales ($ 1,000 s) Month Sales( $ 1,000 s) Month 11 Jan. 14 Aug. 14 Feb. 17…

Q: Tax Bracket : 0-$20,000 = 10% $20,001-$60,000 = 15% $60,001-$100,000 = 35%…

A: Tax is the revenue earned by the government for the development of economy. Tax is calculated by…

Q: (d) What is the maximum the agent will pay for insurance? Show your work. Note that insurance here…

A: Part D) The maximum the agent will pay for insurance is equal to the expected loss, because this…

Q: If a Canadian hockey stick has a price of $44, how much does it cost in a. Europe, assuming an…

A: The unitary method can be applied to get currency conversion

Q: Which of the following is true for this profit-maximizing firm at price P in the graph below? Price…

A: In perfect competition , There are large no. of buyers and sellers. The profit is maximized at the…

Q: (2) The pandemic has given us plenty of examples of the costs and benefits of externalities and…

A: Introduction The global pandemic is an economic as well as a social tragedy. the primary response to…

Q: Explain the concept ‘financial instability’ in Minsky’s frame work?

A: The financial instability hypothesis of Minsky's framework addresses the emergency of industrialists…

Q: 1.Essay Question (2 Inflation is a rise in prices, which can be translated as the decline of…

A: The main objectives of taxation is to generate income to pay for significant public expenditures.…

Q: In 300-500 words, describe two examples of positive externalities and two examples of negative…

A: Externality refers to the spill over effect of production or consumption activities that accrues to…

Q: 1. Refer to the accompanying figure. Planned Aggregate Expenditure, PAE 4.750 4,000 3,250 1,000 45°…

A: The potential level of output is depicted by Y*. The potential level output is 3000 (See the…

Q: Discretionary fiscal policy lead Select one: a) Economic recession b) Economic Inefficiency c)…

A: At the marketplace, discretionary fiscal policy is when government make changes in its spending or…

Q: Suppose we are analyzing the market for hot chocolate. Producers expect the price of hot chocolate…

A: Producers are the gathering of people who produce either labor and products for making utility.

Q: (1) Don Juan complains that the river has become polluted since a tobacco company X started…

A: Negative externality: A negative externality implies a situation when a bystander gets adversely…

Q: What do we mean by an exit price? What is the exit price if r = $100 and w= $2000? Explain. Now…

A: Perfect substitutions are goods or commodities which are indistinguishable from each other. If two…

Q: Which of the following depicts an overall balance of payments position in deficit? a. When current…

A: Dear learner you have posted multiple questions, as per our policy we have solved only first…

Q: When making choices between spending or saving, how might these decisions impact the aggregate…

A: Introduction Income to a consumer is divided between spending and saving. From a personal point of…

Q: Interest rate (%) Othere will be an excess demand for money there will be an excess supply of money…

A: Equilibrium in money market is where the money demand curve intersects the money supply curve.…

Q: For the most recent fhscal year. did the US government operate at a Surplus or a deficit?

A: A government determines its budget by estimating its anticipated spending and making measures to…

Q: Consider Sara as she goes through life. Is she destined to stay in the same income quintile her…

A: A method to measure the average (mean) household income of residents and ranking them from poorest…

Q: A company produces very unusual CD's for which the variable cost is $ 11 per CD and the fixed costs…

A: Total cost is the sum of fixed and variable cost. Variable cost is the cost that vary with the…

Q: asmeen purchased stock on January 30, 2017. If she wishes to achieve a long-term holding period,…

A: Capital assets are a type of asset the taxpayer purchases as a long-term investment. The purpose of…

Q: nswer it correctly please. I ll rate accordingly. Explain well and typed answer only. Consider…

A: demand; P=50-Q TC = 15q

Q: a.ln an open economy, a decrease in capital inflows the equilibrium domestic real the quantity of…

A: Capital inflows are the net purchases of domestic assets made by non-residents, or the difference…

Q: Suppose the price-demand equation for a product is f(P) = 625 - 2P². Find the elasticity of demand…

A: The Elasticity of demand measures the quantitative change in the demand in response to the change in…

Q: Use the supply and demand data to complete the table. Price Quantity Demanded Quantity Supplied…

A: Quantity demanded is inversely related to price. Quantity supplied is positively related to price.…

Q: If a French car costs 10,000 euros, a similar American car costs 15000 dollars, and a euro can buy…

A: The nominal exchange for EUR/USD as per in the question is given as 1.2.That is in generall or…

Q: The demand for hamburgers is given by Qd=10-p and the supply is Qs=4p-10, where pd and ps are,…

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

Q: Figure #1 P (S) 125 99 79 75 45 MR MC 99 D 139 Suppose that Figure #1 depicts the demand conditions…

A: Introduction Demand curve is a graphic representation of the relationship between product price and…

Q: Define the functions of money in a proper way. I need answer in your words

A: The trade medium is referred to as money. This is the definition of money that most people would…

Q: The long-rung production function of a competitive firm is f(L,K)= L¹/³K¹/2, where L is the amount…

Q: Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be…

A: Given, loan amount = $20000Number of year = 2Rate of Interest = 8% Lumpsum amount is the…

Question

Suppose that the marginal revenue for firefighting protective clothes is MR = 337.5 4x and the
marginal cost is MC = 3.5x + 15 with a fixed cost of $295. Assume R(0) = 0.
b) Find the revenue function.
R(x)=
=
c) Find the cost function.
C(x) =
d) What is the maximum profit (to the nearest dollar)?
The maximum profit is

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 with 3 images

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

A Silicon Valley firm produces an output of microchips denoted by y and has a cost function c(y). Assume that the first and second derivatives of the cost function are strictly positive. Of the chips it produces, a fraction 1 − α are unavoidably defective and cannot be sold. Working chips can be sold at a price p and the microchip market is highly competitive. How will an increase in production quality affect the firm’s profit?
Revenue from product X is $11,000, variable costs are $7,000, and allocated fixed costs are $6,000. If you drop product X in the long term, profit will:
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?
A farm produces rice, which is sold in 50 kilogram bags. Let Q denote the number of bagsproduced per week during harvest time. Costs C are denoted in units of dollars. The totalweekly cost function for producing the product is C = 4Q + 100. The total weekly income function for this product is I = 50Q – 2Q2. What is the profit function P as a function of Q and sketch it using P values 0, 5, 10,15, 20 and 25.
Suppose a company has fixed costs of $53,200 and variable cost per unit of 1/3x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2372 − 2/3x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) x = (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find maximum profit. $ (d) What price will maximize the profit? (Round your answer to the nearest cent.) $
A small business woman has realized that for one of her products, if the price per unit is GH¢20 she can sell 300 units a day. On the other hand, if the price per unit is reduced to GH¢13, she can sell 440 units a day. From the accounting records, her accountant has estimated the fixed cost of production as GH₵2,000 with a variable cost per unit of GH¢10. (i). Find an expression relating price and output assuming it is linear. (ii). State the total cost function, assuming it is linear. (iii) Advise the business woman on the level of production at which she will breakeven.
For a unit demand function p=24-8x where x is the number of units and p is the price in tk,finds tge sales function. If the average cost per unit is Tk,8 find a.The profit function, b.The number of units that maximize that profit function.
An accountant for a car rental company was recently asked to report the firm's costs of producing various levels of output. The accountant knows that the most recent estimate available of the firm's cost function is C(Q) = 100 + 10Q + Q^2, where costs are measured in thousands of dollars and output is measured in thousands of hours rented. a. What is the average fixed cost of producing 2 units of output? b. What is the average variable cost of producing 2 units of output? c. What is the average total cost of producing 2 units of output? d. What is the marginal cost of producing 2 units of output? e. What is the relation between the answers to (a), (b), and (c) above? Is this a general property of average cost curves?
Suppose w= 1 and r= 3. Solve the cost minimization problem to find L*(q) and K*(q). Then find the cost function C(q).
Suppose a laptop manufacturer has the given total cost function and the given total revenue function. C(x) = 200x + 8000 and R(x) = 500x If 150 units are produced, find the total cost for this product.
If C = 0.0001Q2 + 3Q + 6000 is a total-cost function, find the marginal cost when Q = 100.
The marginal cost curve is generally ______________, because diminishing marginal returns implies that additional units are ________________________. downward-sloping; A.more costly to produce upward-sloping; B. more costly to produce downward-sloping; C. less costly to produce upward-sloping; D. less costly to produce