Cost, revenue, and profit are in dollars and x is the number of units.A firm knows that its marginal cost for a product is MC = 2x + 25, that its marginal revenue is MR = 43 − 4x, and that the cost of production of 80 units is $8,560.(a) Find the optimal level of production. units(b) Find the profit function.P(x) = (c) Find the profit or loss at the optimal level.There is a ---Select--- profit loss of $ . 11. [-/7 Рoints]DETAILSHARMATHAP12 12.4.007.MY NOTESASK YOUR TEACHERCost, revenue, and profit are in dollars and x is the number of units.A firm knows that its marginal cost for a product is MC = 2x + 25, that its marginal revenue is MR = 43 – 4x, and that the cost of production of 80 units is $8,560.(a) Find the optimal level of production.units(b) Find the profit function.P(x) =(c) Find the profit or loss at the optimal level.There is a ---Select--- v of $

The optimal level of production is where the marginal revenue equals the marginal cost. That is at…

Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its marginal cost for a product is MC = 2x + 25, that its marginal revenue is MR = 43 − 4x, and that the cost of production of 80 units is $8,560. (a) Find the optimal level of production. units (b) Find the profit function. P(x) =

Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its marginal cost for a product is MC = 2x + 25, that its marginal revenue is MR = 43 − 4x, and that the cost of production of 80 units is $8,560. (a) Find the optimal level of production. units (b) Find the profit function. P(x) =

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 1.3P

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6. Heidi owns a business that sells photographs. The profit function for her business can be modelled by the equation p(x)=-0.5x2-5x-7, where x is the quantity sold, in thousands, and P(x) is the profit in thousands of dollars. How many photos must Heidi sell in order for her business to break even? please type answer, not in writing
7. Refer to Figure 16-2. Which letter identifies the profit-maximizing level of output for this firm? 8. Refer to Figure 16-2. Which letter identifies the efficient level of output for this firm?
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6 If a company’s total revenue is $1,744,322, their explicit costs are $863,214, and their implicit costs are $506,688, then what is their Accounting profit? What is their economic profit? (Show your work).
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5. The daily demand for rooms at a motel is given by P=100-2Q. Assume that the motel has 40 rooms. 5a. If total variable costs of running this motel are zero, find the price that maximizes profit and find the number of rooms rented at that price. Remember that profit is total revenue (i.e., TR = PQ) less total cost (i.e., the sum of variable costs and fixed costs). 5b. If the incremental cost of renting a room is $9 (i.e., the cost of paying the maid to clean the room, the cost of providing clean towels, the cost of the little pieces of chocolate that is placed on the bed, etc. is $9), find the price that maximizes profit and the number of rooms rented at that price.
Suppose for a single firm thatP = 15TC = 3Q + 2Q2 (a) What is the profit-maximizing quantity? (b) What is the profit at the profit-maximizing quantity? Only typed Answer
Q 4 5 6 Revenue and cost figures can be observed in the table below for Greensons Organic. Use the information in the first three columns to complete the table Output /Sales(Q) Total Revenue (TR) Total Costs (TC) Profit /Loss Marginal Revenue (MR) Marginal Costs (MC) Addition to profit 0 0 8 -8 1 7 14 -7 7 6 2 14 19 -5 7 5 3 21 23 -2 7 4 4 28 26 2 7 3 5 35 28 7 7 2 6 42 31 11 7 3 7 49 38 11 7 7 8 56 48 8 7 10 2. Is Greensons Organic operating in the short run or in the long run? Justify your answer 3. Calculate average variable costs when the level of output is equal to 5 units. 4. What level of output does Greensons Organic maximize profit? Justify/explain your answer and show calculations 5. When will the diminishing marginal returns start to prevail for Greensons Organic and why? 6.…
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Figure 7.1 shows a ﬁrm’s total revenue and total cost curves. If the ﬁrm were producing Q1, it should a. expand output to Q2 to maximize proﬁt. b. reduce output to zero to maximize proﬁt. c. expand output to Q3 to maximize proﬁt. d. expand output beyond Q3 to maximize proﬁt. e. continue to produce Q1, which is the proﬁt-maximizing output.