Given the following total-revenue and total-cost functions of a firm: TR = 4Q TC = 0.04Q³ – 0.9Q² + 10Q + 5 determine the level of output at which the firm maximizes its total profit. determine the maximum profit that the firm could earn.
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Given the following total-revenue and total-cost functions of a firm:
TR = 4Q
TC = 0.04Q³ – 0.9Q² + 10Q + 5
- determine the level of output at which the firm maximizes its total profit.
- determine the maximum profit that the firm could earn.
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- For the following total-revenue and total-cost functions of a firm: TR=22Q - 0.5Q2 TC= (1/3)Q3 - 8.5Q2 + 50Q + 90 Determine the level of output at which the firm maximizes its total profit. Determine the maximum profit that the firm could earn.19. Given the total revenue and the total cost function in # 18, the corresponding marginal revenue is computed as MR = 78 – 4Q, while the marginal cost is MC = 2, find the optimal level of output that maximizes profits where MR = MC A. Q = 18 B. Q = 19 C. Q = 20 D. Q = 21 E. No correct answerPakMonoG’s inverse demand function is P = 100 – 2Q and cost function is TC = 10 + 2Q, where Q is quantity in units and P price in PKR. Determine the profit-maximizing price, quantity and profit (or loss) of PakMonoG. Given your calculations in (a), illustrate the demand, marginal revenue and marginal cost curves of the firm in a graph. If we were to compare PakMonoG with a perfect competitive firm in the market, are there differences in characteristics of the two structures? What are welfare implications? Is total societal welfare of the firm higher or lower than that of a competitive firm? Support your answer using the graph in (b) above.
- PakMonoG’s inverse demand function is P = 100 – 2Q and cost function is TC = 10 + 2Q, where Q is quantity in units and P price in PKR. Determine the profit-maximizing price, quantity and profit (or loss) of PakMonoG. Given your calculations in (a), illustrate the demand, marginal revenue and marginal cost curves of the firm in a graph. If we were to compare PakMonoG with a perfect competitive firm in the market, are there differences in characteristics of the two structures? (Maximum 150 words) What are welfare implications? Is total societal welfare of the firm higher or lower than that of a competitive firm? Support your answer using the graph in (b) above. (Maximum 150 words)demand curve, marginal revenue curve and total cost curve for a product are as shown respectively Qd = 400 -2P MR = 200 -Q TC = 10Q . What is the profit-maximising level of output? [1] 0 [2] 10 [3] 190 [4] 200 [5] 400Suppose that the total revenue function of a firm is defined as TR= (P)(Q) where TR= f(Q). The usual notation applies. 1. . Find the total revenue function TR(Q) if the inverse demand function is given by P(Q) = 80-0.2Q2. What is the shape of the total revenue function if graphed? State your basis.
- The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q + 20 + 400/q , ,where q is the firm's output. Is the rate of change of profit increasing or decreasing when the output level of the firm is 10 units?The table below shows a short run situation is evident from: a)the linear marginal revenue function b)the constant price c)the increasing marginal cost d)the presence of positive costs at Q=0 e)the absence of marginal values at Q=0PakMonoG’s inverse demand function is P = 100 – 2Q and cost function is TC = 10 + 2Q, where Q is quantity in units and P price in PKR. Determine the profit-maximizing price, quantity and profit (or loss) of PakMonoG. Given your calculations in (a), illustrate the demand, marginal revenue and marginal cost curves of the firm in a graph.
- A firm produces two goods in pure competition and has the following total revenue and total cost functions: TR = P1Q1 + P2Q2 and TC = 2Q12 + Q1Q2 +2Q22 Where, P1 = 12 and P2 = 18. Form the profit function and identity the critical value Q1*. Identity the critical value Q2*. Construct the Hessian matrix and calculate the value of |H1|. Calculate the value of |H2|. Based on the values of Hessian, what can you say about the profit?1. Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml size is: q = 4000 − 250p and his total cost function is: C(q) = 500 + 0.2q (i) Derive an expression, R(q) for Teddy J′s total revenue curve.(ii) Derive an expression, Π(q) for Teddy J's profit function.(iii) Determine whether Teddy J′s profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to beMC=q+35 MR=560+22q−q2Where q is the quantity produced and the firm’s break-even is 5 units per weekYou are Required to1. determine the total cost and the total revenue function in terms of q.2. estimate the output at which profit is maximize3. calculate the maximum profit