Suppose that the total cost of a firm TC(Q) function =: TC(Q)=75Q+800 And the demand function = : P=600-5Q a) Find the level output (Q) that maximizes the profit level (π). b) Find the value of the maximum profit (π).
Q: The inverse demand function and cost function is given by P= 50-2Q and C = 10+2Q Calculate the total…
A: Demand function, P = 50 -2Q Cost function , C= 10 +2Q
Q: The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: If it is projected that there will be 100 tickets sold at a dinner price of $115.50, which catering…
A: The objective of any private organization is to maximize its profit. Here, the company decides which…
Q: A rational firm operating in a perfectly competitive market has its demand and total cost function…
A: Total Cost Function : TC=50+25Q-40Q2 Total Cost can be decomposed into two parts: 1) Total Fixed…
Q: Write out the total cost and total revenue functions in terms of Q.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Given a cost function C(x) = x 2 +50x+200 and a demand curve p = 200 − 2x, find the number of units…
A: Profits are the excess of revenue receipts over the costs incurred in the production of activities.
Q: Suppose a firm has the following demand and cost functions (ATTACHED) A. Calculate the profit…
A: Profits are the excess of the revenue receipts over the firm’s total spending incurred during a…
Q: The cost function for a firm in perfect competition is given as C(Q) =Q³-8q²+5 . Find the profit…
A:
Q: ) Suppose a firm is trying to decide whether to temporarily shut down to minimize its total loss.…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: Define Q to be the level of output produced and sold, and assume that the firm’s total cost function…
A: The profit of any firm is maximized at a point where marginal revenue is equal to marginal cost. The…
Q: Suppose that a firm’s fixed costs is $80, and variable costs per unit are $(2Q + 16). The demand…
A: The break-even point is where the total revenue is equal to total cost. This means what the firm…
Q: A limit pricing strategy is most likely to be successful when: A market demand is rising B there are…
A: Limit Price is a pricing tactic used by monopolists to deter competition. When a monopolist sets its…
Q: A firm's demand function is Q = 16 – P and its total cost function is defined as TC = 3 + Q +…
A: Profit depends on total revenue and total cost of a firm. Profit is a difference between total…
Q: Define Q to be the level of output produced and sold, and assume that the company total cost…
A: The firms in every market are the sellers, suppliers, or the producers of goods, and services. The…
Q: Suppose the price reaction function for Mars' chocolate bars is Pm = (Vm+cm)/2)+0.5Ph, where Pm is…
A: Price reaction function for Mars chocolate is:- Pm = (Vm +Cm)/2) + 0.5Ph Price reaction function for…
Q: Suppose that, at a quantity of q = 20, a firm's costs are as follows: MC = 20, AVC = 12, ATC = 30.…
A: In economics AVC is basically determined as the total firms variable costs which is merely divided…
Q: The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q…
A: Total revenue, R (q) = 40q - 12q2 Average cost, A(q) = 1/30q2 - 12.85q +20 + 400/q
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30q2 − 12.85q +…
A:
Q: Find the point of diminishing returns (x.y) for the function R(x), where R(x) represents revenue (in…
A: The law of diminishing returns states that, after the optimum level capacity, every additional unit…
Q: A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2 Q…
A: Q = 30 − P P = 30-QATC =7/Q− 6 +1/2 Q Total Revenue (TR) = PXQ = 30Q-Q2 Total Cost (TC) = ATCXQ TC…
Q: demand function is given by P = 25 - Q and Total cost function TC = Q. Calculate firms price and…
A: In a perfect competition, the equilibrium condition is where price is equal to marginal cost.
Q: A firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 1,000 + 40Q, respectively.…
A: According to question given that price(demand ) equation and total cost equation, using both we can…
Q: The inverse demand for tea is given by P= 8 – 0.03Q, where Pis the price per a gram of tea and Q is…
A: Both shop have same cost structure and therefore their reactions function and the output are going…
Q: firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A:
Q: A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 + Q + 0.25Q2…
A: P = 16 - Q TR = PQ = 16Q - Q2 Profit (Z) = TR - TC = 16Q - Q2 - 3 - Q - 0.25Q2 = 15Q - 1.25Q2 - 3…
Q: A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 + Q + 0.25Q²…
A: Economic profit is the difference between total revenue and total cost.
Q: inverse demand function is P = 200 -20, and the firm's cost function is C( Determine the firm's…
A: A contestable market is that market where no restrictions to entry and exit. When firms in a…
Q: The cost function for a firm is given by C(Q) = 5+q^2. If the firm sells output in a perfectly…
A: Given: C(Q) = 5+q2 P=$20 In perfectly competitive market all the firms are price takers. Therefore,…
Q: Solve the attahment.
A: Given: Cost function: C(Q) = 100 + Q2 Price = $10
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a…
A: In a perfect competitive market all firms are price taker and keep their price level equal to the…
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: Given: Fixed Cost = $100 Total Cost = $2500 Output= 15 sinks q=15demand functionq=360 - p15=360 -…
Q: Given that the demand function is P = 9 - Q and the total cost is TC = 2Q + 10 Find the level of…
A: Given: P=9-QTC=2Q+10 Break even is a point, at which Total revenue=Total cost
Q: A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 + Q+ 0.25Q²…
A: The main objective of every firm is to maximize its profits. Profits are the excess of revenue…
Q: A firm has the following average cost and demand function Ac= 3Q+7+12/Q Q= 10-P Formulate the…
A: Given, AC = 3Q + 7 + 12/Q Q = 10 - P TC = AC . Q TC = 3Q² + 7Q + 12
Q: A company has determined that the price and the monthly demand of one of its products are related by…
A: The profit is maximized where the MR = MC.
Q: Suppose the average total cost (ATC) of a firm is given as 4 ATC = Q +- Find the output(Q) that…
A: Sine you have posted multiple question, as per guideline, we are supposed to solve first question…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30q2 − 12.85q +…
A: Solution - Given in the Question - Total Revenue curve of a firm R(q) = 40q -12q2…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A:
Q: A firm's demand function is Q = 16 – P and its total cost function is defined as TC = 3 + Q + 0.25Q2…
A: Equilibrium in economics is the state of stability and balance. Any deviation from this level will…
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: The total cost of production for the firm refers to the monetary value of the inputs used by the…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q°. If the firm sells output in a…
A: In a perfectly competitive market at a price of $10, the firm should produce to maximize profits or…
Q: Find an expression for the profit function given the demand function 2Q + P = 24 and the average…
A: 2Q + P = 24 P = 24-2Q AC = 48/Q + 4
Q: Inverse demand function for a firm is P(Q) = 100 -2q and the cost function is represented as C(q) =…
A: Given: P = 100 - 2q TC =10+2q Total Revenue (TR) = PXQ = 100q - 2q2 Marginal Revenue (MR) = dTR/dq=…
Q: A demand of 230 banquet attendees can be expected at a dinner plate price of $80.00 each. A demand…
A: The Profit Function s for each of the possible Contractors in terms of x are Profit = Revenue -…
Q: If a firm's average variable cost curve decreases when the firm increases its output, then the firm…
A: Average variable not entirely settled by separating the total variable cost by the output.
Q: The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis…
A: In Cournot duopoly two firms compete in quantity and maximize profit by producing at MR =MC
Q: The profit maximizing output level for this firm is
A: Any firm maximizes profit where MR=MC
π
4/ Suppose that the total cost of a firm TC(Q) function =:
TC(Q)=75Q+800
And the demand function = :
P=600-5Q
a) Find the level output (Q) that maximizes the profit level (π).
b) Find the value of the maximum profit (π).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Q2.The management of an ‘Electronic Goods’ manufacturing company asked you to give an advice about changing its current production plan, given the following information:- Annual production plan of computers is 4200 computers.- Total cost of production is OMR 824000.- Fixed cost is OMR 320000.- Revenue function: R = 460.2Q – 0.05Q2 1-Use the above information to formulate the price function and the total cost function, and determine the following: 1) Profit-maximizing quantity.2) Profit-maximizing price.3) Maximum profit value.4) Revenue-maximizing quantity. 2-Should the company change its current annual production plan of computers in order to maximize its profit?A firm's demand and total cost function are given by the expression: P = 20 - Q/2 (1) TC = 0.5Q2 + 36 (2) Where P is price per unit in £ TC = total cost in £ Q is quantity demanded and produced. Find the profit-maximising level of output using the profit function and calculate how much profit is made at this output level.Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?
- Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q What does this function imply about the effect of the law of diminishing returns on Bitcom’s short-run cost function? Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output. Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175? Compute Bitcom’s short-run supply curve for its product. Provide a 100 word summary of how this can be applied to the current economy. Show Calculations and can it be done in Excel?1- Suppose that the total cost function of a firm is given as follows;TC = 500 + 2Q2And the price of the firm’s product is determined by the market equilibrium at $100.a- Set the profit maximizing condition . Find the profit maximizing output level for this firm .b- What is the total revenue ?c- What is the total cost ?d- What is the profit earned by the firm ?e- Illustrate your answer by using a well-labeled graph .f- Denote the break even price level with Pb on the same graph .g- Denote the shut down price level with Ps on the same graph.h- Show the firm’s supply curve on the same graph .i- Does the firm function in short-run or long-run ? Why ?9 The total cost function for a PC firm is as follows: TC=100+160Q-8Q2+0.4Q3 What is the minimum price a firm would accept to stay open in the short-run? a. P=$20 b. P=$80 c. P=$120 d. P=$100 e. None of the above
- A firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profitA firm has a linear demand function for it's product.When the price for the product is Sh.220,the quantity demanded is 40 units.When the price increases to Sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is given by; MC = 40Q-2Q^2+2 Fixed cost = Sh. 5 million Where Q= quantity demanded, Mc= marginal cost(cost in Sh. Million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at a maximum profitMarginal Analysis II Question 1 Assume that a competitive firm has the total cost function: TC=1q3−40q2+870q+1500TC=1q3-40q2+870q+1500 Suppose the price of the firm's output (sold in integer units) is $700 per unit. Using calculus and formulas to find a solution (don't just build a table in a spreadsheet as in the previous lesson), how many integer units should the firm produce to maximize profit? Please specify your answer as an integer. Hint 1: The first derivative of the total cost function, which is cumulative, is the marginal cost function, which is incremental. The narrated lecture and formula summary explain how to compute the derivative. Set the marginal cost equal to the marginal revenue (price in this case) to define an equation for the optimal quantity q. Rearrange the equation to the quadratic form aq2 + bq + c = 0, where a, b, and c are constants. Use the quadratic formula to solve for q: q=−b±b2−4ac−−−−−−−√2aq=-b±b2-4ac2a For non-integer quantity, round up and down to…
- Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 70 + 0.10x + 0.001x2 dollars. (a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.] R'(x) = P'(x) = (b) Compute the revenue and profit, and also the marginal revenue and profit, if you have produced and sold 500 copies of the latest edition. revenue $ profit $ marginal revenue $ per additional copy marginal profit $ per additional copy Interpret the results. The approximate from the sale of the 501st copy is $ . (c) For which value of x is the marginal profit zero?x = copiesInterpret your answer. The graph of the profit function is a parabola with a vertex at x = , so the profit is at a maximum when you produce and sell copies.A firm has the following demand and average total cost functions: Q = 30 − PATC =(7/Q)− 6 +(1/2)Q Find:i. The total revenue function ii. The total cost function iii. The level of output that will maximize revenue and minimize total costs iv. The profit function and the level of output that maximize profits v. Show that AR = PQ)Assume that a competitive firm has the total cost function: TC=1q^3−40q^2+740q+1600 Suppose the price of the firm's output (sold in integer units) is $650 per unit. Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution. A. How many units should the firm produce to maximize profit? B. What is the total profit at the optimal output level? Please specify your answer as an integer.