The cost function for q units of a certain item is C(q) = 106q + 104. The revenue function for the same item is R(q) = 106q + 47q/In(q) Find the marginal cost. Find the profit function. Find the profit from one more unit sold when 8 units are sold.

The cost function for q units of a certain item is C(q) = 106q + 104. The revenue function for the same item is R(q) = 106q + 47q/In(q) Find the marginal cost. Find the profit function. Find the profit from one more unit sold when 8 units are sold.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 1MC

See similar textbooks

Related questions

Q: If the MPC = 0.8, what is the multiplier and what is the tax multiplier? If the government's goal…

A: The marginal propensity to consume refers to the portion of each additional income a consumer spends…

Q: Problem 03-04 (algo) Suppose the own price elasticity of demand for good X is -2, its income…

A: The own price elasticity of demand for good X is -2. The income elasticity is -1. The advertising…

Q: Suppose Zambia is open to free trade in the world market for oranges. Because of Zambia's small…

A: Consumers surplus is the difference between the highest price a consumer is willing to pay and the…

Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…

A: Households earn income when firms purchase factor services in factor market.Explanation:Approach to…

Q: The following table gives the quantity of money demanded at various price levels (P), the money…

A: Part 1: AnswerThe equilibrium value of money is 0.75, and the equilibrium price level is…

Q: Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to…

A: For comparing and analysing various projects and to take decisions related to investments and…

Q: Consider an economy where Banks can invest in one of two projects, G and B. Project G pays G if…

A: The profit for investing in Project G:The profit for investing in Project B:And

Q: A polluting firm has Marginal Abatement Costs as graphed below and is faced with an emissions tax =…

A: In this question we are given with a graph depicting marginal abatement costs of a polluting firm…

Q: In 2023, four years after legalization, cannabis dispensaries in Toronto made an economic profit of…

A: Economic profit, unlike accounting profit, considers all the costs associated with production,…

Q: Consider the following two-person, zero-sum game. Payoffs are the winnings for Player A. Player B b₁…

A: The problem is a non-cooperative two-person zero-sum game, i.e. finding a pure strategy solution.…

Q: Below is a graph that represents the market for labor in Morgantown. Suppose there is currently a…

A: Labor economics, within the field of economics is dedicated to examining labor markets, employment…

Q: If the Internet lowers the transaction costs producers incur when they sell their product to the…

A: The debate focuses on the idea of vertical integration and how transaction costs influence business…

Q: subordinate to 8. Study Questions and Problems #8 independent of The Federal Reserve is set up to be…

A: The Federal Reserve is set up to be largely independent of Congress and the president in order to…

Q: 5. Choice between direct exporting and FDI Das Spielzeug is a profit-maximizing firm producing…

A: if any queries please inform methank you.you are satisfied with the attachment plz rank my…

Q: Imagine Two Households each with an income of $65,000 per year. Household A consists of two married…

A: The issue at stake is figuring out what area of government policies of equality in taxes regarding…

Q: WATER TREATMENT PLANT PROCESS COSTS Information: (Please see the attached image depicting the…

A: Discontinuing aeration saves $2196 per month on electricity if the cost remains at 9…

Q: Three GenCos and three LSES (load serving entities) participate in a centralized electricity market.…

A: Market clearing price is the price that is accepted by market operators. It is the price where…

Q: K Suppose the figure to the right represents the market for a particular brand of shampoo, such as…

A: In monopolistic competition, there exists a large number of buyers and sellers. The firm will…

Q: In canada, How much would required to invest in Canada to qualify in the self-employed category?

A: To qualify for the self-employed category in Canada, individuals must meet specific criteria set by…

Q: Assume that JA$ 1.00 = GUY $ 2.00. In each scenario below you are asked to find the new value of the…

A: The objective of the question is to calculate the new value of the Jamaican Dollar (JMD) in each of…

Q: Our model takes the price level � as given in the short run, but in reality, the currency…

A: The issue is whether a fiscal expansion that remains permanent through an increase in government…

Q: In a market economy, what mechanism determines the price and quantity of goods sold? A) Government…

A: The issue is to distinguish the system in a market economy that normally lays out the costs and…

Q: The demand equation for the Widget Company has been estimated to be: Q =…

A: The demand function is the mathematical relationship between the quantity of a commodity demanded…

Q: Assume, as in Exercise 22.1, that a consumer has utility function F or fruit and chocolate.…

A: Utility function for two goods is given.The budget constraint is;where P1 and P2 are prices of goods…

Q: b. After the price floor is implemented, what exists? both neither a shortage a surplus Shade in the…

A: Price flooding is a government to ensure the minimum returns to the producer. In price flooring, the…

Q: The individual's utility function has the following form: U(C, L) = 5+ CL Here C indicates the…

A: Utility, in economics, refers to the satisfaction or pleasure a consumer derives from consuming a…

Q: Hand written solutions are strictly prohibited

A: The objective of the question is to find the missing marginal costs for each quantity of car…

Q: 1. Suppose a firm operates as a monopoly in the domestic (home) market for a product. The demand for…

A: A monopoly refers to a market structure where a single firm or entity is the sole producer or seller…

Q: Suppose a small settlement has 10 workers. The table below shows the output (pounds of firewood)…

A: The production function shows the relationship between the input used and the output produced.The…

Q: Your pharmaceutical firm is seeking to open up new international markets by partnering with various…

A: The concept of value creation in the context refers to the economic benefits generated through…

Q: Utility equals satisfaction true or false

A: The concept of utility is used to analyse consumers' tastes.

Q: Two firms, Incumbent & Entrant, can produce the same good. The market demand for the good is given…

A: Demand measures the willingness and the ability of the individual to pay for the commodity. The…

Q: Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All…

A: The final goods and services produced within a country within a specific period of time are referred…

Q: Assume demand is given as P $2500-$25Q. The firm has a fixed cost of $3000 and variable costs of…

A: Demand function: P=2500−25Q.Fixed cost of production: FC=$3000Variable cost of production:…

Q: Physical Capital Year (Tools per worker) Labor Force (Workers) 2026 15 70 2051 20 70 Output…

A: Labor worker productivity is the economic measurement of the output of the laborers. Higher labor…

Q: The following data is provided for a PPP project. To the People Benefits Disbenefits $140,000 per…

A: The Conventional Benefit-Cost Ratio (B-C ratio) is a financial metric used in project evaluation to…

Q: Discuss the insight of this box plot. the box plot is comparing the quality ratings (1-9) for…

A: Here from the Boxplot it can be seen that the Median value for all four shipping methods for both…

Q: The chicken game has often been used to model crises. Recall that in this game, the two players…

A: Game theory is a framework that researches choice-making in situations involving more than one…

Q: A Canadian traveling to the United States converts $100 Canadian into 80 U.S. dollars. One month…

A: Exchange rates represent the value of one currency in terms of another currency. Changes in exchange…

Q: The utility function of a consumer is u = √x + 2y. (a) Show mathematically that the rise of Px will…

A: A utility function is a mathematical representation used in economics and decision theory to…

Q: (c) Consider a two-period small open endowment-economy populated by a large number of identical…

A: Given,

Q: The total cost function of Novo Nordisk, an obesity treatment monopolist, is given by TC = 30 - 2Q +…

A: A monopoly market is a market structure in which a single seller, known as a monopolist, dominates…

Q: a. Compute the opportunity cost in forgone consumer goods (millions of pounds of butter) for each…

A: Opportunity cost refers to the value of the next best alternative foregone when a decision is made…

Q: Central Concrete is evaluating a project that would cost 1,302.00 today. The project is expected to…

A: The stats known as the net present value (NPV) calculate the financial gains or losses you can gain…

Q: Part 3: Maria now has enough information to charge for her tamales. Use the DEMAND SCHEDULE and…

A: Market equilibrium refers to a scenario at which the quantity demanded is equal to the quantity…

Q: Suppose MPL = 20 and MPK = 40 and the rental rate on capital is $10. If the level of production is…

A: The objective of the question is to find the wage rate in an efficient level of production given the…

Q: Diversification vs. specialisation? Discuss.

A: Diversification and specialization are two particular techniques utilized in different parts of…

Q: 2.One of life's great lessons is to start early and save all the money you can! If you save $10…

A: The present value is the current worth of the investment made during the beginning of the specific…

Q: Problem 4 Consider the leisure demand/labor supply model studied in class, and let the consumer have…

A: Given,

Q: The nominal exchange rate is the price of one currency in terms of another currency. A nominal…

A: The cash held by the individual in the economy is referred to as currency. It is a form of payment…

Question

I don’t understand

tes
ub...
t
March 26, 2024 at 9:33 PM
The cost function for q units of a certain item is C(q) = 106q + 104. The revenue function for the same item is R(q) = 106q+
47q/In(q)
Find the marginal cost.
Find the profit function.
Find the profit from one more unit sold when 8 units are sold.
I

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define the problem:

VIEW

Step 2: Calculate marginal cost:

VIEW

Step 3: Derive profit function:

VIEW

Step 4: Calculate the profit from one more unit sold:

VIEW

Solution

VIEW

Step by step

Solved in 5 steps with 9 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose a product's revenue function is given by R(q)=−6q2+400q, where R(q)is in dollars and qis units sold. Also, it's cost function is given by C(q)=103q+3333, where C(q)is in dollars and qis units produced. Find a simplified expression for the item's Marginal Profit function ( MP(q)) and record your answer in the box. Be sure to use the correct variable. (Use the Preview button to check your syntax before submitting your final result). Answer: MP(q)=
Suppose that the marginal revenue for a product is MR = 775 and the marginal cost is MC = 39 times sq. root of x+1, with a fixed cost of $906. Find the profit function, then find the profit or loss fromthe production and sale of 3 units.__________________________________________________
What is the cheapest way of producing 850 units of output if a firm operates with theproduction function 0.5 0.5 Q = 30K L and can buy input K at 75 $ per unit and L at 40 $per unit?
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?
Suppose a company's revenue function is given by R(q)=−q3+400q2R(q)=-q3+400q2 and its cost function is given by C(q)=550+12qC(q)=550+12q, where qq is hundreds of units sold/produced, while R(q)R(q) and C(q)C(q) are in total dollars of revenue and cost, respectively.A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.) MP(q)=MP(q)= B) How many items (in hundreds) need to be sold to maximize profits? Answer: hundred units must be sold. (Round to two decimal places.)
A firm has the following information on production and costs from past data: Output (Y) 0 6 12 18 Total Cost (TC) 9 2775 5361 8199 If the total cost function is known to be TC=aY3+bY2+kY+f, and the demand for the product of the firm is Y=320-(1/2)P. answer the following: Determine the coefficient of the cubic cost function. Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points.
A manufacturer has found out that if he is to increase his current sales, he must lower his current price. His marginal revenue (MR) from an output x is given by the expression MR=148 – 2x. The marginal production cost (MC) is Ksh 36 and fixed costs amount to Ksh 1,000. Required i) Derive the revenue and total cost functions. ii) Determine the output and price that would maximize profit. iii) Compute the maximum profit.
Suppose the revenue (in dollars) from the sale of x units of a product is given by R(x) = 56x2 + 65x 2x + 2 . Find the marginal revenue when 25 units are sold. (Round your answer to the nearest dollar.)$ Interpret your result. When 25 units are sold, the projected revenue from the sale of unit 26 would be $ .
Suppose that the marginal revenue for a product is MR=775 and the marginal cost is MC39sqrt(x+1), with a fixed cost of$906.00 Find the profit or loss from the production and sale of 3 units.
A commodity has a demand function modeled by p = 106 − 0.5x and a total cost function modeled by C = 30x + 33.75, where x is the number of units. (a) What unit price (in dollars) yields a maximum profit? $ per unit (b) When the profit is maximized, what is the average cost (in dollars) per unit? (Round your answer to two decimal places.) $ per unit
• Use the total cost (TC) schedule that is presented in the table below to determine the optimal rate of production when the firm can sell all of the output it produces at a price $8 per unit. Also determine the level of profit (or loss) that the firm will experience at this level of output.Q0123456789 TC 15 17 18 20 24 30 38 48 60 82
Suppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for materials, $60 for equipment, and $40 for rent. The market wage for the manager is $120 per day but the owner-manager does not draw a salary. Assume the daily revenue is $420. What are the daily economic costs for the firm described above? Just give equation formula.