Suppose a firm has two plants. The costs are: TC = 30 + TC1 + TC2.. TC1 = 10Q1 + Q12 . TC2 = 10Q2 + .5Q22 . The firm’s demand is Pm = 80 - .5Qm. Find the firm’s profit-maximizing P* and Q*, outputs allocated to plants 1 and 2
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Suppose a firm has two plants. The costs are:
TC = 30 + TC1 + TC2..
TC1
= 10Q1 + Q12 .
TC2
= 10Q2 + .5Q22 .
The firm’s demand is Pm = 80 - .5Qm.
Find the firm’s profit-maximizing P* and Q*, outputs allocated to plants 1 and 2 and overall profit.The profit maximizing profit is ?
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- Points) Suppose a firm has two plants. The costs are: TC = 30 + TC1 + TC2..TC1= 10Q1 + Q12 .TC2= 10Q2 + .5Q22 .The firm’s demand is Pm = 80 - .5Qm.Find the firm’s profit-maximizing P* and Q*, outputs allocated to plants 1 and 2 and overall profit. The profit maximizing output allocated is?The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what price should the manager of this firm put on the product? What level of output should be produced to maximize profits? How much profit will be earned? As per your solution provided The profit is maximized: MC=MR=P C(Q) = 5+Q2 MC= dC/dQ = 2Q ...what is dC and dQ here??? and why dC/dQ = 2Q?? please assistA firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 + .1*Q12 and TC2= 2*Q2 + .1*Q22. The firm’s demand schedule is Q = 160 – 10*P. What is the profit maximizing amounts to be allocated to plant 1? Plant#1 =
- A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 + .1*Q12 and TC2= 2*Q2 + .1*Q22. The firm’s demand schedule is Q = 160 – 10*P. What is the profit maximizing output for the firm?Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by: C= 200 + 2Q2, where Q is the level of output and C is the total cost. a) If the price of watches is $100, how many watches should you produce to maximize profits?b) What will be your profit level?c) At what minimum price will the firm produce a positive output?You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 − 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2 How much output should be produced in plant 1 to maximize profits? What price should be charged to maximize profits? Please show work for all three questions What price should be charged to maximize revenues?
- Suppose the cost function of firm A, which produces two goods, is given by C = 100 − .5 Q1Q2 + (Q1)2 + (Q2)2 The firm wishes to produce 5 units of good 1 and 4 units of good 2. 1. Do cost complementarities exist? Do economies of scope exist? 2. Firm A is considering selling the subsidiary that produces good 2 to firm B, in which case it will produce only good 1. What will happen to firm A’s costs if it continues to produce 5 units of good 1?You are the manager of a firm that produces its output in a competitive market at Q = 500 – 25P. Your firm's cost function is C = 5Q + Q2/50. The profit-maximizing output for your firm is: 75. 50. 100. 125. 150.(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.
- A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 + .1*Q12 and TC2= 2*Q2 + .1*Q22. The firm’s demand schedule is Q = 160 – 10*P. What is the profit maximizing profit for the firmSuppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $10, what level of output should the firm produce to maximize profits or minimize losses? What will be the level of profits or losses if the firm makes the optimal decision?Two farmers produce milk for local town with local milk demand given by Q=100-1/3P (P denotes price measured in Rands, Q denotes the quantity measured in litres). Both farmers have the same cost function given by TC=150+2q (where q denotes output)a. What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers