The demand function is x = ÷(25 – 2p) where, x is the number of units and p is the price Let the average cost per unit be Tk.40. i. Find the cost function, revenue function and profit function. ii. Find the unit that maximizes the profit and calculate the maximum profit.

The demand function is x = ÷(25 – 2p) where, x is the number of units and p is the price Let the average cost per unit be Tk.40. i. Find the cost function, revenue function and profit function. ii. Find the unit that maximizes the profit and calculate the maximum profit.

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

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 9MC

See similar textbooks

Related questions

Q: The average revenue function for a commodity is p = 50 – 4q. Find edp when: demand = 5 units ;…

A: Given Average revenue function: p = 50 - 4q.

Q: If demand function is p = 160 - 0.0025x and Cost function is C = 15x + 0.0025x². Find the quantity…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Find total revenue if the price function is P=4Q-500

A: Given: Price function is: P=4Q-500 Where, P is the price of a good Q is quantity of a good

Q: The cost function for flavored coffee at an upscale coffeehouse is given in dollars by C(x) = 3x +…

A: The break-even point is the sum of earnings required to fund a business's cumulative fixed and…

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. Compute the total variable cost b. Compute the total fixed cost c. Compute total cost (TC)…

A: The given information includes the fixed costs of the XY Company, the variable costs per unit of the…

Q: Suppose a company has fixed costs of $53,200 and variable cost per unit of 1/3x + 444 dollars,…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Let x denote the level of output of a firm’s production process. The cost function is given by C (x)…

A: Profits are the excess of revenue receipts over the costs incurred by the firm. To maximize profits,…

Q: pharmaceutical company faces the following demand function for one of its products in the American…

A: Price Elasticity of Demand = % change in quantity ÷ % change in price % change in quantity =…

Q: A company that manufactures bicycles has a fixed cost of $100,000. It costs $100 to produce each…

A: The cost function is a summation of the fixed and the variable cost involved in producing one unit…

Q: TOTAL PROFITS UP OR DOWN? Kiran's Kandles sells a bathroom candle set for $37.25. The variable cost…

A: The elasticity of a good is used to measure the responsiveness of consumers to the demand of a good…

Q: A firm has the following revenue and cost functions: TR = 100 Q – 4Q2 TC = 300 +40 Q + 2Q2 Determine…

A: Given TR= 100Q-4Q2 TC= 300+40Q+2Q2 The condition for profit maximization is MR=MC MR is the…

Q: Mathematical Economics If fixed cost are 20, variable cost per unit are 2 and the demand function is…

A: here we calculate the profit , by reducing the cost from revenue , and by using the given…

Q: The firm will maximize its profit at a quantity of units. After choosing the profit maximizing…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its…

A: The marginal revenue (MR) measures the addition to the total revenue when one more output unit gets…

Q: A company can sell x units of a product when the price is p = D(x) = 5.00 – 0.006x dollars. The…

A: Marginal profit is the profit earned by a firm after the production and sale of an additional unit.

Q: that the fixed costs are $5780 per week and the cost of producing each set of clubs is $73.00. Each…

Q: A music store sells an average of 160 CDs per week at $24 each. The cost of producing x music CDs is…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: SleazeCo manufacturers wind turbines (that produce electricity) for sale in Texas. They currently…

A: Given Information Demand curve of SleazeCo P = $350,000-5q Marginal Revenue function MR = $350,000…

Q: Define Q to be the level of output produced and sold and assume that the firm’s cost function is…

A: Profit maximization is the situation in which the marginal revenue equals marginal cost. It means a…

Q: Maximizing profit. For Exercises 23-28, find the maximum profit and the number of units that must be…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The revenue and cost functions for a particular product are given below. The cost and revenue are…

A: Given values; R(x) = −0.2x2 + 172x C(x) = 78x + 10065

Q: The demand function for a product marketed by a company is p = (80-D) / 4, where D is the number of…

A: Given, Demand function p = 80-D4 = 20 - 0.25D Here D is the number of units Whereas p is the price…

Q: Find total revenue if the price function is P=70Q-500

A: Price function is: P=70Q−500 Where, P is the price of a good Q is quantity of a good

Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…

A: According to the question given, the daily cost schedule of the laundry sink manufacturer has…

Q: Suppose the long-run total cost function is C(q) = 4q². The cost-output elasticity is %3D equal to

A: Cost elasticity (also known as cost-output elasticity) evaluates the responsiveness of total cost…

Q: Suposse a munufacture of widgets has a fixcost of $2500, a variable cost of $30 per widget ans sell…

A: Costs are the expenses that a firm has to incur in its production activities. Revenue, on the other…

Q: Marginal cost is defined by: (a) total cost increases when one more unit is produced. (b) fixed…

A: Answer - 1. (a) Total Cost increase when more unit is produced. Reason - Marginal cost is defined…

Q: s. Given the total profit and the fixed cost TFC is 40, variable cost are chen the total revenue…

A: Revenue is equal to the number of units sold times the price per unit. To obtain the revenue…

Q: minimize total revenue b) what is the maximum value for total revenu

A: The firm's total revenue is product of price and quantity.

Q: The demand function for FreshFood Exclusive Brand's product is D = 80 - 2p , where D is the number…

A: Demand function D = 80 -2p => p = (80 -D)/2 => p = 40 - 0.5D ------------------ Total revenue…

Q: Given that the additional cost to produce an extra unit is 400 – 3x, profit is 700 - 4x – 2x ?, and…

A: Total cost = Variable cost + Fixed cost Fixed cost = RM 25 MC= 400-3x Also MC= ∆TC/∆Q TC=…

Q: A company has a linear total cost and a linear total revenue, where the slope of the revenue line is…

A: The break even point of a firm occurs when the total revenue equals total cost. The total cost curve…

Q: given the function c(x) = 100 + 8x + 0.1x^2 find the marginal profit At x = 50 if the price per unit…

A: given c(x) = 100 + 8x + 0.1x^2 x = 50 and price per unit (P)= 20

Q: For a unit demand function p=24-8x where x is the number of units and p is the price in tk,finds tge…

A: Sales function is demand function itself. Profit function is π = TR - TC

Q: If MC= 3x + 20 and MR = 44 – 5x where x is the number of units produced and sold, and the cost of…

A: MC(marginal cost) is the change in TC(total cost) when one more unit of the product is made.…

Q: f the average cost function of a good is AC = 2Q + 6 + 13 Find an expression for MC. If the current…

A: AC(average cost) is the TC(total cost) divided by Q(quantity). MC(marginal cost) is the change in TC…

Q: The HAC at Humberview has decided to sell Gatorade to raise money. The demand function is described…

A: Profit is maximized where marginal revenue equal to marginal cost.

Q: Find a maximum profit for a firm if its total revenue function is TR = 50Q - Q2 and its total cost…

A: Profit maximization occurs at the point where the Marginal revenue and Marginal cost are same.…

Q: To produce x units of a religious medal costs C(x) = 15x + 108. The revenue is R(x) = 33x. Both cost…

A: Breakeven quantity is the number of incremental units that the firm needs to sell to cover the cost…

Q: For a certain product, suppose that total costs are given by c(x) = 1600 + 1500x and total revenues…

A: b. Profit (P) is calculated by the difference between total cost [c(x)] and total revenue [R(x)].…

Q: Suppose the revenue function for the sale of a product is r(x)= -3x^2+30x and the cost function is…

A: * SOLUTION :- Given that, The revenue function R(x) = -3x^2+30x The cost function C(x)= 6x

Q: A company is planning to manufacture PDAs personal digital assistants. The fixed cost will be…

A: Fixed cost are the cost which is independent of the total output produced. In contrast to this,…

Question

Giiven below sir plz do it for me

The demand function is x = ÷ (25 – 2p) where, x is the number of units and p is the price.
Let the average cost per unit be Tk.40.
i.
Find the cost function, revenue function and profit function.
ii.
Find the unit that maximizes the profit and calculate the maximum profit.

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

For a unit demand function p=24-8x where x is the number of units and p is the price in tk,finds tge sales function. If the average cost per unit is Tk,8 find a.The profit function, b.The number of units that maximize that profit function.
The demand equation of a certain product is p=90-q-q². The total cost function is c=50+q-0.1q². Find the profit function. Simplify your answer as much as possible.
It is known that the demand function for a good is shown by the equation P = - 5Q + 110 and the total cost of production is C = 100 + 10Q + 5Q². Calculate the maximum profit rate of sales, the amount of profit and the selling price per unit.
Marginal Cost is equal to Marginal Revenue when Price= $13 and Quantity= 350, which is the profit-maximizing price.
Revenue from product X is $11,000, variable costs are $7,000, and allocated fixed costs are $6,000. If you drop product X in the long term, profit will:
The revenue function for a lawnmower shop is given by R(x)=x⋅p(x)R(x)=x⋅p(x) dollars where x is the number of units sold and p(x)=400−0.5xp(x)=400−0.5x is the unit price. Find the maximum revenue.
Suppose a company has fixed costs of $53,200 and variable cost per unit of 1/3x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2372 − 2/3x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) x = (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find maximum profit. $ (d) What price will maximize the profit? (Round your answer to the nearest cent.) $
A commodity has a demand function modeled by p= 100-0.5x and the total cost function is C= 50x+37.5 if x is number of units. Price of maximum profit has to be calculated. We have to find the price where there is the maximum profit.
Find the price that will maximize profit for the demand and cost functions, where p is the price, x is the number of units, and C is the cost. Demand Function p= 78-0.1 square root x Cost Function C = 33x + 550 $ =
The demand function for small high-definition televisions is given by p = 9,000 − 55x, where p is the price, in dollars, that x televisions can be sold. The cost function (in dollars) to produce televisions is C = 3,500x + 2,000. (Simplify your answers completely.) (a)Find the revenue function, R. R = (b)Find the profit function, P. P = (c)Find how many televisions should be sold to maximize profit. televisions (d)What is the maximum profit (in dollars)? $
The average revenue function for a commodity is p = 50 – 4q. Find edp when: demand = 5 units ; price = Rs. 6. Find consumer’s surplus at price = Rs. 6
For a certain product, suppose that total costs are given by c(x) = 1600 + 1500x and total revenues by R(x) = 1600x-x2 (b) Find the profit function, p(x). c) Find the number of units that will maximize profit. (d) Find the maximum profit.