t a price of $20 per CD, a firm sells 70 CDs. If the slope of the demand curve is - $0.20, marginal revenue for the 71st CD is $ (Enter our response rounded to the nearest penny.) The firm should cut the price to sell one more CD if the marginal cost is less than $. (Enter your response rounded to the nearest penny.)
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- A manufacturer of upholstery can sell 2121 yards of fabric at a price of $3.11$3.11 per yard. If the price is $1.85$1.85, she can sell 3535 yards. The total cost of manufacturing x yards of fabric is C(x)=0.6x+36C(x)=0.6x+36 dollars. Step 1 of 3 : Assuming the demand function is linear, find an equation for D(x)D(x). Do not round your answer.A manufacturer of a new patented product has found that he can sell 70 units a week to the customer if the price is $48. In error, the price was recently advertised at $78 and as a result, only 40 units were sold in a week. The manufacturers fixed costs of production are $1,710 a week and variable costs are $9 per unit. You are required to: a. Show the equation of the demand function linking price (P) to quantity demanded (X) assuming it to be a straight line is P = 118-xAssume that a firm’s marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm’s total cost of production is $1,000. If the price of the product is $5 per unit, the total revenue earned by the firm will be:
- Explain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is on the rise. People often believe that large firms in an industry have cost advantages over small firms in the same industry. For example, they might think a big oil company has a cost advantage over a small oil company. For this to be true, what condition must exist? Explain your answer.Question Google is considering an advertising campaign that is expected to increase the sales of its Pixel phone by 20%. Suppose that currently Google sells 1,000,000 units at $500 per unit and the variable cost per unit is $300. If the cost of the advertising campaign is $50 million, will Google find it acceptable? Question An attractive feature of new cell phones that was introduce d in recent years is that you can switch carriers easily with the same device. How does this feature affect demand for wireless phone services? What are the likely effects on the demand that a particular US carrier is facing? Are there any elasticities that were likely to be affected?. 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.
- Cost, revenue, and profit are in dollars and x is the number of units.A firm knows that its marginal cost for a product is MC = 2x + 25, that its marginal revenue is MR = 43 − 4x, and that the cost of production of 80 units is $8,560. (a) Find the optimal level of production. units(b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level. There is a ---Select--- profit loss of $ .Total revenue for producing 10 units of output is $5. Total revenue for producing 11 units of output is $9. Given this information, the Average revenue for producing 11 units is $2. Average revenue for producing 11 units is $4 Marginal revenue for producing the 11th unit is $2. Marginal revenue for producing the 11th unit is $4.has established that the relationship between the price for one of its products is approximately. In addition there is a fixed cost of $45,000 per year and the variable cost to manufacture the product is $45 per unit. What level of demand maximizes the total revenue? Ans. is Blank 1. What level of demand maximizes the total profit for this product? Ans. is Blank 2. Blank 1_____________ Blank 2_____________
- 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.1.The price p in dollars of a certain commodity and the quantity x sold obey the demand equation p= -1/5x + 200 where 0<=x <=1000. Suppose that the cost C in dollars of producing x units is C= the square root of x divided by 10 + 400. Assuming that all items produced are sold, find the cost of c as a function of the price p.The price of a product is expressed as p, PHP = 10 – 28D where D is the demand. Which of the following correctlyexpresses the total revenue? A. 10 − 28D^2 B. 28D = 10 C. 10D − 28D D. 10D −28D^2