If C(x) = 19,000 + 400x – 3.6x2 + 0.004x³ is the cost function and p(x) = 1,600 – 9x is the demand function, find the production level (in units) that will maximize profit. (Hint: If the profit is maximized, then the marginal revenue equals the marginal cost.) units Need Help? Read It

If C(x) = 19,000 + 400x – 3.6x2 + 0.004x³ is the cost function and p(x) = 1,600 – 9x is the demand function, find the production level (in units) that will maximize profit. (Hint: If the profit is maximized, then the marginal revenue equals the marginal cost.) units Need Help? Read It

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

See similar textbooks

Related questions

Q: Determine the point elasticity n of the demand equation 329- 5000 + 2000 when p 50 On= 0.002; demand…

A: According to the question, demand function given that 3p2q = 5000 + 2000 p2 and, p = 50

Q: Describe some of the challenges of doing business with ASEAN countries? Please do fast ASAP fast

A: The Association of Southeast Asian Nations (ASEAN) is an international organisation whose members'…

Q: Determine the initial amount owed at the beginning of the year if you have to pay P563.83 after 10…

A: Simple interest amount formulaA=P1+R×T100Where, A=AmountP=PrincipalR=Rate of interestand T=Time in…

Q: does a gap between the average earning of between of men and women, or between whites and black,…

A: Introduction Discrimination is defined as behaviour based on the conviction that members of a…

Q: Assume that 1) households hold no currency and 2) banks hold no excess reserves. The current reserve…

A: Reserve requirement = 10% Money multiplier = 1/RR Money Multiplier = 1/0.1 = 10

Q: How does managerial economics help to assess operational issues faced by private business firms.

A: The economics that involves the application of economic methods in process of decision making and…

Q: Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc.…

A: Given:- Marginal cost of cleaning pollution=$12000 Marginal benefit=$20,000 To calculate:- Part a, b…

Q: Currency $150 billion $400 billion $1,200 billion $2,400 billion Bank reserves Checkable deposits…

A: The money supply basically refers to the quantity of money that is available for immediate use in a…

Q: Draw a graph of the following function: y= e^x/(1+e^x)

Q: Given the cash flow diagram, compute P. Choose your final answer from below while still showing your…

A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…

Q: QUESTION 9 This figure shows demand and supply for a product in country A, which is interested in…

A: Given:- Import price from country B= $3 Import price from country C= $4 Fixed tariff imposed by…

Q: Peter withdraws $5000 from his savings account. Then he deposits $4000 in his checking account and…

A: M1 is a measure of money supply which includes the following components. M1 = C + DD + OD where, C…

Q: Assume that 1) households hold no currency and 2) banks hold no excess reserves. The current reserve…

A: It is given that the reserve requirement is 10%

Q: Define circular flow and explain the FOUR (4) sectors in circular flow. Illustrate with circular…

Q: looking at the functional HR strategy that Nestle use to implement their Pet Food strategy, what was…

A: Introduction The corporate structure of Nestle Purina has a matrix structure. This means there are…

Q: If a grand jury issues an indictment against a defendant, the defendant then appears in court to…

A: 1) Arraignment:- The accused is informed of the allegations on them during an arraignment, which is…

Q: Consider an economy with 1,000 people and two goods, one private and one public. The people all have…

A: Given information Utility function Ui=Xi-100/G X= private good G= public good

Q: A real appreciation means that domestic goods become more expensive relative to foreign goods.…

A: Appreciation and depreciation of a currency refers to the rate at which the currency of one country…

Q: Use the figure below to answer the following question. Price Pa Pt Qa Quantity If a price floor in…

A: Price floor is set above the equilibrium where quantity supplied exceeds quantity demanded. So it…

Q: Deposit insurance is a guarantee by the CDIC to pay deposits off in full on the first they have…

A: Deposit insurance is a guarantee by the CDIC to pay deposits off in full on the first $100,000 they…

Q: Using the same begging portion of the above problem -- A cotton buyer will be making a purchase of…

Q: Player 2 d A Player 1 B 1,3 0,0 4, 2 -1,5 Consider the following stage game: (a) Find the minmax…

A: Given pay off matrix

Q: Give an example of a good or service that should not be allocated entirely by a free, unregulated…

A: Under the free market system the demand and supply forces decide the types of goods and services…

Q: (KEY QUESTION) Bob is a magazine monopolist. His marginal cost of production (per magazine) is…

A: Given:- MC(constant)=$5 To calculate:- profit maximizing output level and price=? Dear student as…

Q: In the short run, what happens to the solow growth model when there is technological advancement?…

A: In the short run, what happens to the solow growth model when there is technological advancement?The…

Q: A problem with money models is that in fact there is more than one kind of money; economists do not…

A: Commercial money, fiduciary money, fiat money, and commodity money are the four categories of money…

Q: Short run product and cost npany cal table and show different worker and output levels (TP) and…

A: *Answer: *a

Q: L Find a mixed strategy o2 (q, 1-q) for Player 2 that will make Player 1 indifferent about his…

Q: 10. Student A in our class ECON 2210 tried to estimate the average marks of the midterm held in…

A: A sample is a subset of a bigger group that is smaller and simpler to handle.It's a subset of a…

Q: 1. Total present worth of all cash flows. Is the sum a positive net cash flow or a negative net cash…

A: In this question we have:- a series of cash flows : • a cash flow of P375 at the end of the 2nd,…

Q: Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study…

A: We are going to use expectation hypothesis to calculate Present Wroth for each project to answer…

Q: In what two ways can we describe migration?

A: Economic migration refers to people moving from one country to another in order to take advantage of…

Q: Open market operations are A. transactions in the foreign exchange market B. transactions in the…

A: Open market operations are managed and done by central bank of the economy.

Q: In the Austrian model, fractional reserve lending A) creates malinvestment. B) is opposed by…

A: Only a portion of bank deposits are secured by real cash on hand and accessible for withdrawal under…

Q: What is a market and what is the key to functioning markets? Explain.

A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a…

Q: H(E) = aE – bE?, with a, b representing positive constants and E is fishing effort. Total cost is TC…

A: (C) Fisheries are renewable resources that may become extinct due to indiscriminate harvesting.…

Q: 1. Imagine that the markup practiced by firms in an economy is 5% The degree of the protection of…

A: Wage setting Relation : W = Pe F(u , z ) where , F(u , z ) = 1 + au + z (a = d(W)/du , slope…

Q: Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were as…

A: Average = (Sum of observation / Number of observation) A negative growth rate implies recession.

Q: Real Income (Y) Real GDP Potential GDP T1 T2 T3 T4 T5 Years (a) Based on the given business cycle…

A: Economic recession refers to a fall in the economic activity in an economy. This lower economic…

Q: E I poinis possible Dinotopia's Balance of Payments Account, 2014 (billions of S) CURRENT ACCOUNT…

A: Current account balance = (X - M) + Net Earnings from Abroad + Net Transfer Payment…

Q: Please refer to the figure below. The equation for p = 105-0.005D 25,000+65D w Y D (units sold) How…

A: The quantity of a product that customers are ready to purchase and able to acquire at a given price…

Q: In the short run, what happens to the solow growth model when there is technological advancement?…

A: Solow model is economic growth model which observe various changes in output level in the economy.We…

Q: Explain whether the current policy of the Federal Reserve “expansionary” (accommodative) or…

A: The current policy of the Federal Reserve is expansionary which is also referred to as accommodative…

Q: Mary Graham worked as a real estate agent for Piedmont Properties for 15 years. Her annual income…

A: Mary Graham revenue and cost from the given information, Revenue $2,000,000 Operating expenses…

Q: 1. Trade patterns a. How big is world trade today in percentage of world GDP? b. When did world…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: A coupon bond will make 20 annual coupon payments of $5,000 each and will pay a face value of…

A: The annual coupon value is $5000. percentage of face value=5000100000*100=5% The coupon rate is…

Q: 2. A sum of $1,000 is deposited at time "0" at an interest rate of 52%, compounded quarterly. What…

A: Given:P=$1000i=512%=5.5%n=4 (number of times compunded in a year)t=5 (number of years)

Q: CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD…

A: Break even is a situation where total revenue is equals to total cost

Q: 1. price of water to - decreases - increases 2. the behavior is an example of -- - - a prisoner's…

A: Disclaimer :- as you posted Multipart questions we are supposed to solve the first 3 questions only…

Q: Suppose that every driver faces a 4% probability of an automobile accident every year. An accident…

A: Given; Probability of loss= 0.04 Average cost of accident to each driver= $5000 Two types of…

Question

If C(x) = 19,000 + 400x – 3.6x2 + 0.004x³ is the cost function and p(x) = 1,600 – 9x is the demand function, find the production level (in units) that will maximize profit. (Hint: If
the profit is maximized, then the marginal revenue equals the marginal cost.)
units
Need Help?
Read It

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

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

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).
Suppose that the marginal revenue for a product is MR = 775 and the marginal cost is MC = 39 times sq. root of x+1, with a fixed cost of $906. Find the profit function, then find the profit or loss fromthe production and sale of 3 units.__________________________________________________
Suppose a short-run production function is described as Q=30L-0.05L^2 where L is the number of Labors used each hour. If each unit of output (Q) has a marginal revenue (price) of $5 and the marginal cost of labor is $40 per labor unit (L), how many units of labor (L) should be hired to maximize profit?
Suppose a company's revenue function is given by R(q)=−q3+400q2R(q)=-q3+400q2 and its cost function is given by C(q)=550+12qC(q)=550+12q, where qq is hundreds of units sold/produced, while R(q)R(q) and C(q)C(q) are in total dollars of revenue and cost, respectively.A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.) MP(q)=MP(q)= B) How many items (in hundreds) need to be sold to maximize profits? Answer: hundred units must be sold. (Round to two decimal places.)
In a fishery the long-run harvest function (harvest volume) isH(E) = aE - bE2, with a, b representing positive constants and E is fishing effort.Total cost is TC(E) = CE, with e being the unit cost of effort.Total revenue is TR(E) = pH(E), with p being the constant price of fish. Explain why higher levels of effort (E) beyond a certain point are associated withreductions in long-run total revenue (TR).
Sergio Lopez is a publisher of Latin American poetry. His fixed cost is $525, and the cost to produce each individual copy of his book is $3.50. Currently, Sergio is selling these books for $6 each. So far this year, he has produced x a. Write a linear cost function C for Sergio’s book production, in terms of x. b. Find the linear revenue function R for selling x copies of the book. Remember that P(x) = (price)x. c. Use and 1b. to determine the profit function P for selling x books. Write the formula in simplified form. d.Use your answer for 1c to determine the profit, in dollars, for selling 300 books.
If a company's marginal revenue is greater than its marginal cost, then the company should
A firm’s objective is to Maximize Profits and Minimize Costs. Demand is Q = 600 – 3*P. The firm’s production function is Q = 5*L.6*K.5. Total Cost is TC = PL*L + PK*K = $12*L + $6*K. The objective is to maximize Profit. Find the Profit-Maximizing output. At the profit-maximizing solution, K =?