For a firm’s product, the demand function is p =72−0.04q and the average cost function is i. ¯ c = 500 q +30 i. At what level of output would profit be maximized? ii. ii. Atwhat price is the profit maximized?
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For a firm’s product, the demand function is p =72−0.04q and the average cost function is i. ¯ c = 500 q +30
i. At what level of output would profit be maximized? ii.
ii. Atwhat price is the profit maximized?
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- For a firm’s product, the demand function is p =72−0.04q and the average cost function is i. ¯ c = 500 q +30 i. At what level of output would profit be maximized? ii. At what price is the profit maximized?Suppose a firm faces a demand curve for its product P=a-bQ, and the firm's cost of production and marketing are c(Q)=cQ+d, where P is price, Q is quantity and a,b,c and d are positive constants. find the following; a) The formula for profit 9(pie) in terms of Q b)The first order condition for maximum profit c)the second order condition for maximum profitA firm produces two goods in quantities x and y. Its cost function is C(x, y) 10x + xy + 10y and the prices P, and Py it can charge are, respectively, Px = 50 – x + y and Py = 50 – x+ y. The firm is committed to delivering a total of 15 units. How much should the firm produce of each good to maximize profits?
- Suppose the (inverse) demand for a firm’s product is given by P = 10−2Q and the cost function is C(Q) = 2Q What is the profit-maximizing level of output and price for this firm?A firm has revenue given by R(q) = 160q - 3q2 and its cost function is C(q) = 500 + 40 Q What is the profit-maximizing level of output? What profit does the firm earn at this output level? The firm maximizes profit by producing q = _______. (Enter your response as a whole number.) Corresponding profit is pi = $_________. Enter your response as a whole number).(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.
- Elsie sells homemade lemonade. If she prices a glass of lemonade at $3, she sells 12 glasses a day. If she gives a $0.50 discount (per glass), she can sell 3 more glasses per day. Write a linear demand equation q = mp + b, where p is the price per glass, and q is the number of glasses she can sell per day. Suppose that it costs her 20 cents a glass to make lemonade. There is no fixed cost. Write down the revenue function, cost function, and profit function as functions of p. How much should she charge per glass to maximize her profit? What is the maximum profit?Suppose you are an economist working in a watch factory operating in a competitive market. The cost is given by: CT = 200 + Q2, where Q is the level of production and CT is the Total Cost, the CMg (marginal cost) of production is 2Q. The Fixed Cost of production is $ 150. a. If the price of the watches is $ 60. How many watches must they make to maximize profit?b. What would be the level of utility?c. At what minimum price would the company make a positive output?Given a firm which uses 2 inputs, X1 and X2; to produce a good that is described by the production function: Q = f (X1 X2) = X11/2 X21/4 The firm sells its ouput at N$80 per units. Given cost of input 1, X1; is N$4; and the cost of input 2, X2; is N$2 Solve for the profit maximizing input mix, output, and profit.
- Q)Suppose a small company sells speakers. The company determines that the supply function for the speakers is given by S(x)=10x+50,And the demand function for speakers is given by D(x)=5000-20x. Where x is the speaker price. How many speakers can be supplied at a price of $30?You own a bakery and the inverse demand function for your cakes is P=8-1.5Q. If the cost of producing cake is C=0.5Q, determine the profit-maximizing quantity, and the profit-maximizing price.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 = 3x + 30, that its marginal revenue is MR = 62 − 5x, and that the cost of production of 60 units is $7,300. (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 $ .
