Question10: If the demand function faced by a firm is: Q = 90 – 2P TC = 2 + 57Q – 8Q²+ Q³ Determine the level of output at which the firm maximizes the profit.
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Q: Consider the following price-demand function: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} (i) Sketch the…
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A: Given:P=90-Q4TC=1/4Q2-6Q+40 Now,TR=P×QTR=90-Q4×QTR=90Q-Q24
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A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
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A: To find: A competitive firm maximizes profit at the output level where
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Q: A firm faces the market demand curve: P=90-Q/4 where P = price and Q = output The firm has the total…
A: Demand : P=90-Q/4 Total Cost : 1/4Q2-6Q+40 Total Revenue= P*Q TR=90Q-Q2/4 Profit π=Total…
Q: Consider the following price-demand function: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} (i) Sketch the…
A: Here, demand function is given as: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} and, cost function is given as: C =…
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Q: if there are two firms both have the same MC= 30$. the inverse market demand P=150- (q1 +q2). what…
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A: P =1000 – 2Q TC = Q3 – 59Q2 + 1315Q + 2000
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- if there are two firms both have the same MC= 30$. the inverse market demand P=150- (q1 +q2). what is the quantity equation for each firm and what is their profit at equilibrium?Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is -1.25. Then we know that: demand is inelastic. marginal revenue is $2. marginal revenue is $50. demand is unit elastic.If the market demand curve is Q = 100−p, what is the market price elasticity of demand? If the supply curve of individual firms is q = p and there are 50 identical firms, draw the residual demand facing any one firm. What is the residual demand elasticity facing one firm at the competitive equilibrium.
- 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.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).Firm A and Firm B sell identical goods The total market demand is:Q(P) = 1,000-1.0P The inverse demand function is therefore: P(QM) = 10,000-10QM QM is total market production (i.e., combined production of firm’s A and B). That is: QM = QA + QB As a result, the inverse demand curve for each firm is: P(QA,QB) = 10,000-10QA-10QB The difference between this example and the example in class is that the two firms have different costs. Firm A has the same cost as in class, but firm B has a different cost function: TCA(QA) = 5000QA TCB(QB) = 5000QB Using the demand function and the cost functions above, what is firm A’s profit function? Using the profit function above and assuming that firm B produces QB, calculate what firm A’s best response is to firm B’s decision to produce QB. (Note: Firm A’s best response should be a function of QB) Using the demand function and the cost functions above, what is firm B’s profit function? Using the profit function above and assuming that firm A…
- QUESTION 19 Suppose a firm's inverse demand curve is given by P = 340 - 0.80 and its cost function is C = 120 + 100Q, then the production (Q) that maximizes profit is equal to: Or Q = 150 Or Q=250 EITHER Q=100 Q=200analyse the difference between a profit maximising firm and a profit satisficing firm given the firm faces a downward sloping demand curveDetermine the profit-maximizing prices when a firm faces two markets where the inverse demand curves are Market A: p =80−2Qa, where demand is less elastic, and Market B: p=60−1Qb, where demand is more elastic, and Marginal Cost = m =40
- For a firm with a downward-sloping demand curve, which of the following is true at the profit-maximizing level of output? For this case, let's assume that marginal costs are positive.a) demand is perfectly inelastic b) demand is inelastic but not perfectly inelastic c) demand is unit-elastic d) demand is elastic but not perfectly elastice) demand is perfectly elasticConsider the following price-demand function: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} (i) Sketch the price-demand function(ii) Find the revenue function.(iii) Suppose C = 20 + 5Q , find the profit function(iv) Calculate the profit if Q=8(v) Find the break-even level of output You have to solve iv and vif a firms demand curve is perfectly elastic ,then at the profit maximizing level of output is____