Suppose that a demand equation is given by q=1750-25p and the cost of producing q units is given by C(q) = 63,000-70q+0.02q². Find the marginal profit for the following production levels. (a) 700 units (b) 1055 units (c) 1600 units (a) The marginal profit for a production level of 700 units is (Simplify your answer.)
Q: The figure above shows the log of UK real GDP per capita between 1875 and 1914. Which of the…
A: The term GDP represents "Gross Domestic Product." It is a crucial economic metric for evaluating the…
Q: Price ($ per car) 39,500 20,000 17,000 3,000 Marginal social side benefits from domestic production…
A: Tariffs are a kind of duty or tax that is imposed on exports or imports to regulate domestic…
Q: Can you explain how positive and negative supply shocks affect market equilibrium in terms of price…
A: Supply shocks are unexpected events that significantly change the supply of a product or commodity,…
Q: Yana initially charged $80 for an hour-long massage and averaged 20 clients per week. When she…
A: Price elasticity of demand helps the economist to measure how demand for items or services may…
Q: The following graph shows a hypothetical economy in long-run equilibrium at an expected price level…
A: Aggregate demand is the amount of total quantity of goods demanded in an economy, whereas aggregate…
Q: How much would price change if two firms with identical total cost functions TC = 80Qi move from…
A: In Cournot duopoly, two firms compete in a market by simultaneously choosing the quantity of goods…
Q: Suppose that a firm's output, q, is determined by a Cobb-Douglas production function of capital, K,…
A: A common mathematical tool in economics to simulate the connection between output and inputs in a…
Q: High Price | Low Price X= $625 X = $725 Firm Y Low Price High Price Y = $625 Y = $475 X = $475 X =…
A: The pay-off matrix highlights the different choice combination that are availabe for the two…
Q: Suppose firms become very optimistic about future business conditions and invest heavily in new…
A: Investment expenditure, also referred to as gross private domestic investment, encompasses the…
Q: The graph illustrates the demand for haircuts and the costs of producing haircuts Draw a point at…
A: A single seller in the market for goods is called a monopoly market. The marginal revenue is the…
Q: 5. Assume an economy can be modeled with these equations: C=280 +0.7204 I=450₁ 6=300-0,14Y₁ X=460, M…
A: The equation Y = C + I + G + X - M represents the GDP equation in macroeconomics, illustrating the…
Q: Suggest a policy that could resolve each macroeconomic disequilibrium to a long-run, full-employment…
A: Macroeconomic equilibrium happens at the point where aggregate demand equals aggregate supply, In…
Q: uppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008,…
A: To analyze the changes in the market for Ford Mustangs between 2007 and 2008, we can use the given…
Q: Reserve Requirement (Percent) 25 10 Simple Money Multiplier A lower reserve requirement is…
A: The required reserve ratio is explained as the percentage of deposits that a commercial bank must…
Q: The MR curve of a perfectly competitive firm is [(Click to select) 7 and the MR curve of a monopoly…
A: Unregulated market are administered by the overarching contracts between the taking an interest…
Q: Dasani Water has sales of 4,475 bottles in the month of January and sales decreased to 4,000 in the…
A: INTRODUCTION :In the fast-paced realm of the beverage industry, it is imperative to grasp the…
Q: t is the main profit maximization formula that is followed by the various market structures (i.e.…
A: Achieving the highest revenue or profit is known as profit maximization. Strategic level sales are…
Q: 16. Boeing is considering whether it should develop its next aircraft with a wide body (WIDE) or…
A: The following game matrix is given:BoeingWIDELONGAirbusWIDE40, 500, 0LONG0, 050, 40
Q: Rawlding is a manufacturer in the oligopolistically competitive market for footballs. Two other…
A: An oligopoly refers to a market structure dominated by a small number of large firms or sellers that…
Q: Briley Cosmetics Inc. Briley Cosmetics manufactures and distributes a wide range of skin care…
A: Production optimisation is the technique of optimising production so that with minimum cost maximum…
Q: Other things equal, if a change in the tastes of Canadian consumers causes them to purchase more…
A: GDP measures the monetary value of final products and services—that is, those that are purchased by…
Q: Assume now that education is provided by public schools fixing the level of education for all agents…
A: a) Derive the desired number of children under the assumption that education is provided by public…
Q: 4. Imagine a market with demand P = 420 – Q in each period. Two firms are thinking about colluding.…
A: The marginal revenue curve shows the change in total revenue resulting from selling one extra unit…
Q: In period t, a parental household (indexed by i) equipped with human capital hit earns a labour…
A: Utility FunctionBudget ConstraintHousehold Income - Cost of educating children =
Q: 1. Good X is a Giffen good (a good that violates the law of demand). Suppose that the price of Good…
A: A Giffen good is a rare type of inferior good where an increase in the price of the good leads to an…
Q: O The demand curve for a product is given by Qo= 400-20P and the supply curve for a product is given…
A: Demand and supply are fundamental economic concepts that describe the relationship between the…
Q: The total utility (TU) curve shows the total utility provided by the successive consumption of pizza…
A: Marginal utility refers to the additional satisfaction gained from consuming one more unit of a good…
Q: An increase in inflation expectations Phillips curve. A True B) False Phillips
A: The Phillips curve, which posits a constant and inverse relationship between unemployment and…
Q: PRICE LEVEL 160 150 140 130 120 110 100 90 80 0 с 1 d X ៧. a N {} 2 3 4 5 REAL GDP (Trillions of…
A: Increase in inflation means that the prices of the products rises and the producers finds it…
Q: We are evaluating a project that costs $729,600, has an eight-year life, and has no salvage value.…
A: The cash break-even, accounting break-even, and financial break-even points are among the different…
Q: 8a) How many units did a company sell at $25.92 if they have 24% of the $24,840,000 industry? (2)…
A: To solve these questions, we can use the following formula:Market share = Sales / Total market value
Q: Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate…
A: Cash flow:The net amount of cash or cash equivalents that enters and exits a business or financial…
Q: The following table pertains to Cheeseland, an economy in which the typical consumer's basket…
A: Inflation is defined as the increase in the level of prices in the economy. Inflation leads to…
Q: 2. (Figure: Tomatoes and Carrots III) This figure violates the assumption: Baskets of tomatoes 10- 8…
A: The utility is the term used for the strength of a good while consuming it gives satisfaction to the…
Q: Show that if the economy’s aggregate supply curve is vertical, fluctuations in the growth of…
A: Aggregate demand curve shows the inverse relationship between price level and real GDP. AD curve is…
Q: following statements is (are) TRUE? 7. (Figure: Market for Walnuts I) The graph depicts the…
A: The number of units of an item or service that will be purchased at each potential price is shown…
Q: Check all that apply The firm is breaking even when it produces its profit maximizing outpu The…
A: The perfectly competitive market refers to a market where many buyers and sellers exist. All sellers…
Q: Daniele has an income of 100 and he has to spend it to buy pencils and pens. To him, the two goods…
A: Utility refers to the happiness or satisfaction that an individual get from the consumption of a…
Q: Explain the most recent monetary policy move by the Federal Reserve (the FED). Determine whether…
A: Monetary policy is a policy that is implemented by a country’s central bank to control and manage…
Q: Q1) A new highway is being evaluated at an interest rate of i= 5.5%. Use capitalized cost to…
A: This can be defined as the tool that is used by the individual, business, or any other organisation…
Q: Review the recent economic shock in China’s real estate sector and analyse the effects on the…
A: The Asian economy distinguishes out due to its rapid expansion, intellectual discoveries, and…
Q: In the case of a binding price ceiling, the price paid in the market will be: more than the free…
A: The continuous relationship between consumer tastes and the availability of goods is part of the…
Q: Suppose that the marginal social benefit of insurance exceeds the willingness and ability to pay by…
A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…
Q: please answer and show work for d)
A: A company can sell of a certain model of digit camera at a price of p dollers each.The amount of…
Q: BN8.2 Why don't Cities charge each Individual their Marginal Benefit (MB) to distribute Public…
A: Public goods are prone to market failure because their non-excludable and non-rivalrous nature makes…
Q: KINDLY ASSIST “Africa is set to outperform the rest of the world in economic growth over the next…
A: The question is asking to identify a common characteristic of a country in Africa, given the context…
Q: Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate…
A: Cash flow:The net amount of cash or cash equivalents that enters and exits a business or financial…
Q: 1. Compare the GDP per capita ranking and HDI ranking between Bhutan and Thailand in 2022. Which…
A: A society that is more rich and economically developed is indicated by a higher GDP per capita…
Q: The American Baker's Association reports that annual sales of bakery goods last year rose 15…
A: The optimal level defines the point where resources are allocated efficiently, maximizing overall…
Q: D6: Please Discuss/Calculate The Gold Standard System or the GSS (Hint: Chapter 3 in G (e)…
A: The gold standard system (GSS) is a monetary system in which a country's paper money is pegged to a…
Step by step
Solved in 3 steps with 7 images
- The Grady Tire Company Recaps tires. The weekly fixed cost is $2,500, and the variable cost per tire is $9. Price is related to demand, according to the following linear equation: v = 200- 4.75pDevelop the nonlinear profit function for the tire company and determine the optimal price, the optimal volume, and the maximum profit per week.The Hickory Cabinet and Furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cost per chair is $40. Price is related to demand, according to the following linear equation: v = 400 - 1.2p Develop the nonlinear profit function for this company and determine the price that will maximize profit, the optimal volume, and the maximum profit per month.the mahogany cabinet and furniture company makes chairs. the fixed coat per month of making chairs is $7500 and the variable cost per chair is $40. price is related to demand, according to the following linear equation: v = 400 - 1.2p develop the nonlinear profit function for this company and determine the price that will maximize profit, the optimal volume, and the maximum profit per month
- TRUE OR false.. The firm should shut down its operations if the total revenue cannot cover the total variable costThe marginal cost for a company to produce q items is given by MC(q)=0.004q2−0.6q+620. The company's fixed costs are $8500. Find the marginal cost at a production level of 400 items. The marginal cost at a production level of 400 items is ??? per item.Leonard Presby, Inc., has an annual demand rate of 1,000units but can produce at an average production rate of 2,000 units. Setup cost is $10; carrying cost is $1. What is the optimalnumber of units to be produced each time?
- Pepper farming is carried out in a greenhouse. Proceeds from the sale of pepper, R,dollars per square meter is determined by the following function. R = 5T (1-e^-x) where T is the temperature set in the greenhouse (Celsius, C^0)and the amount of fertilizer per square meter (kilogram, kg) the costs are as follows: fertilizer cost per square meter is 20?, heating cost is 0.10^2.According to this information a) type the profit function of the manufacturer,?(?, ?).B) determine the end points of the profit function.c) show which endpoints you specify or which ones give the highest amount of fertilizer with the temperature value that makes the profit.Consider the production function: Y = 0.75X + 0.0042X2 – 0.000023X3 If input price is 0.15$ and output price is 4$ then at what level of X, profit will be maximum?. An electricity producer has a constant marginal cost of production equal to $40 per megawatt. The residual demand for its electricity is given by P (q) = a−bq, where P is the price and q is the quantity of power generated by this producer. The producer knows the slope, b, but he vertical intercept of the residual demand curve, a is unknown. Assume A and B are greater than zero. If you get stuck, you may answer any of the following questions for special case where a = 80 And b = 0.5 for partial credit. (a) What is the marginal revenue, M R(q), for this producer? b) What is the optimal q for this producer? (c) What is the electricity producer’s optimal price? (d) What is the electricity producer’s optimal bid in a uniform price Auction? e) Suppose b is equal to zero. Would the producer have an incentive to submit a bid above its marginal cost? Explain.
- Average and marginal profit Let C(x) represent the cost ofproducing x items and p(x) be the sale price per item if x items aresold. The profit P(x) of selling x items is P(x) = xp(x) - C(x)(revenue minus costs). The average profit per item when x items aresold is P(x)/x and the marginal profit is dP/dx. The marginal profitapproximates the profit obtained by selling one more item, given that x items have already been sold. Consider the following cost functions Cand price functions p.a. Find the profit function P.b. Find the average profit function and the marginal profit function.c. Find the average profit and the marginal profit if x = a units are sold.d. Interpret the meaning of the values obtained in part (c). C(x) = -0.02x2 + 50x + 100, p(x) = 100 - 0.1x, a = 500Your firm's research department has estimated your total revenues to be R left parenthesis Q right parenthesis equals 30 comma 000 Q minus 80 Q squared and your total costs to be C left parenthesis Q right parenthesis equals 1 comma 000 plus 20 Q squared. What level of Q maximizes net benefits?A company is planning to manufacture PDAs personal digital assistants. The fixed cost will be $400,000 and it will cost $20 to produce each PDA. Each PDA will be sold for $100.a. Write the cost function, C, of producing x PDAs.b. Write the revenue function, R, from the sale of x PDAs.c. Write the profit function, P, from producing and selling x PDAs.d. Determine the break-even point. Describe what this means.