Figure: Costs of Oil Production $50 30 15 Marginal Average Quantity (barrels of oil) Assuming that price equals marginal cost, the profit of producing 8 barrels of oil is: $240. It cannot be determined from the information given. $400 $160.
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- You cannot equate coffee roaster explicit costs with coffee farmers’ explicit benefits, despite coffee roasters paying the farmers for their beans. What are some of the factors that account for this discrepancy? Why does the roaster care about the profitability of the coffee farmer? Why would they offset their reduced production costs by increasing the amount they pay to farmers?Profit The profit for a product is given by P(x) =19x - 5060, where x is the number of units producedand sold. Find the marginal profit for the product.the cost of producing a bottle of zlurp is 1.50, and the competitive suppliers sell it at this price. Each whovillian will consume
- If the marginal revenue of the next widget a firm produces is $100 and its marginal cost is $110, a firm should: A). reconsider past production decisions. B). decrease production. C). increase production. D). hold production constant.Suppose you make beautiful coffee tables out of juniper trees. Your materials cost for each table is $135. You pay your craftsman $25 per hour and it takes him 5 hours to complete one table. If you sell these tables for $689, what is your Cost of Goods Sold Percentage? 2. What is the Gross Profit Margin on the coffee tables described in question 1 above? 3. Suppose your company sells a 3 pack of lenses that attach to smart phones to improve the quality of pictures people take. You pay $29.95 for each 3 pack and sell them for $59.95. What is your Cost of Goods Sold Percentage for this item? 4. Suppose you sell 8,000 of the 3 pack of lenses described in question 3 above in one year. You cost on each 3 pack is $29.95 and you sell them for $59.95. If your operating expenses for the year total $144,080, what are your Net Income and Net Profit Margin Percentage? 5. Suppose an investor gave you $150,000 to start your business. You gave this investor 50 percent of your company for…When you calculate marginal costs, they should include: SELECT THE CORRECT ANSWER A.the market price of the product. B.only variable costs. C.both the variable and fixed costs. D.only fixed costs.
- Average and marginal profit Let C(x) represent the cost ofproducing x items and p(x) be the sale price per item if x items aresold. The profit P(x) of selling x items is P(x) = xp(x) - C(x)(revenue minus costs). The average profit per item when x items aresold is P(x)/x and the marginal profit is dP/dx. The marginal profitapproximates the profit obtained by selling one more item, given that x items have already been sold. Consider the following cost functions Cand price functions p.a. Find the profit function P.b. Find the average profit function and the marginal profit function.c. Find the average profit and the marginal profit if x = a units are sold.d. Interpret the meaning of the values obtained in part (c). C(x) = -0.02x2 + 50x + 100, p(x) = 100 - 0.1x, a = 500Hardware, a small family-owned store in Middletown, sells a 100-pack of garnet sandpaper for $35. The Home Shoppe, a large retail hardware chain in neighboring Morristown, sells the same product for $29. Based on this scenario, what would you expect Merv immediate response to be? Merv will remove his advertisements and rely on word of mouth. Merv will reduce his price to respond to the price competition from the HomeShoppe. The HomeShoppe will initiate non-price competition with Merv. The HomeShoppe will raise its price to respond to the price competition from Merv.Business Selling Price Total Sold Cost of Goods Sold Sales Profit First Aid Kits 28.95 25 400 723.75 323.75 Leg Casts 50 10 300 500 200 Rubbing Liniment 12 5 5 60 55 Resuscitators 70 2 130 140 10 Sun Burn Ointment 25 25 1000 625 -375 Question #1 Economists are always calculating the costs and the benefits of alternatives. Economic profit, as distinct from the accounting profit you calculated in question 1, is the additional profit that is earned by choosing the best, rather than the second best, profit opportunity. Profit maximizers should always calculate economic as well as accounting profit. What is the economic profit you would receive if you decided to purchase the business's best profit maker?
- Chloe is a chef who runs a niche food delivery business in a competitive industry. Chloe specializes in making monster calzones. Chloe sells 20 monster calzones per month. Her monthly total revenue is $5,000. The marginal cost of making a monster calzone is $300. In order to maximize profits, Chloe should A) make more than 20 calzones per month. B) make fewer than 20 calzones per month. C) continue to make 20 calzones per month. D) We do not have enough information with which to answer the question.It costs a coat manufacturer $8750 to make 125 coats and it costs $6500 to make 80 coats. Each coat is sold for $250. a. How much is the marginal cost? Round to two decimal places if rounding is necessary. Do not enter a fraction. There is a $ sign next to the answer box, so do not type a $ sign in your answer. Only type a number (do not type any units on your answer). $ b. What is the slope of the Profit function, P(x)? Round to two decimal places if rounding is necessary. Do not enter a fraction. There is a $ sign next to the answer box, so do not type a $ sign in your answer. Only type a number (do not type any units on your answer). $ c. How many coats must be sold in order to break even? Round to the nearest whole number if rounding is necessary. Do not enter a fraction. Only type a whole number (do not type any units on your answer).Jack scalps lawns in the neighborhood for $36 per house. He does ten houses per day. He is incurring total costs of $400 per day, of which $100 is fixed. The marginal cost per house is constant. (i) What is the value of the marginal cost associated with scalping the lawn of one house? (ii) What are profits equal to at the profit-maximizing level of output?.
