The price-demand and cost functions for the production and sales of z Mini-Vacs are given as P(z) = 25 C(z) = 200 + 5z 25z The price per Mini-Vac p(z) and the cost C(2) are in dollars. a. Find the revenue function in terms of z. R(z) = 25x-25x^2 Preview b. Find the profit (or loss) carned at an output of 20 Mini-Vacs. c. On your own, graph the revenue and cost. Be sure to mark the scale on both axes (fit it to Revenue, which you should graph first), label: y = intercept of y= C(=). R(z), y C(z), the break-even points, the a-intercepts of y= R(z), and the y- d. According to your graph, what is the maximum revenue and at what output level does it occur? Maximum revenue is S at

The price-demand and cost functions for the production and sales of z Mini-Vacs are given as P(z) = 25 C(z) = 200 + 5z 25z The price per Mini-Vac p(z) and the cost C(2) are in dollars. a. Find the revenue function in terms of z. R(z) = 25x-25x^2 Preview b. Find the profit (or loss) carned at an output of 20 Mini-Vacs. c. On your own, graph the revenue and cost. Be sure to mark the scale on both axes (fit it to Revenue, which you should graph first), label: y = intercept of y= C(=). R(z), y C(z), the break-even points, the a-intercepts of y= R(z), and the y- d. According to your graph, what is the maximum revenue and at what output level does it occur? Maximum revenue is S at

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 3E

See similar textbooks

Similar questions

denton productions limited utilizes statistical analysis to determine the optimal price for its sales to customera, during july 2020, the company was provided with the following demand and cost functions by a statistical research company, p=200-6Q, where p=price in dollars; and Q=quantitity of units in thousands TC=5Q2 + 24Q + 150, where TC is total costs in thousands of dollars a. determine the optimal output for july 2020 b. find the price that maximized profit
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)=
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?
Answer B,C,D A firm can produce at most x = 2500 units per month, and their marginal cost function has been computed to be MC=1200+x , while the cost of producing and selling 30 units is $70,000. If their marginal revenue function has been computed to be MR=3500 , then find: The number of units of production resulting in maximum monthly profit The maximum monthly profit Associated fixed costs How many units does the firm need to manufacture and sell in order to break even?
The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) =1/30q2 − 12.85q + 20 +400/q, where q is the firms output. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? Determine the level of output for which the firms profit is maximized. What is the firm's maximum profit?
. 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.
A producer faces a fixed cost of Rs. 50 and a variable cost Rs. 5 per unit of output when he produces less than 200 units of output. Assuming that total cost function is linear, determine the equation of the total cost of function. What is the break-even level of output if the price of output is Rs. 10 per unit. Also draw the relevant graphs. Determine the producer's net revenue if output is 12 units and the price of output is Rs. 5, Rs. 10 and Rs. 15
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.
Q4 the unit cost, in dollars,to produce bins of cat food is $4 and the fixed cost is $22638. The revenue function,in dollars, r(x)=-2x^2+452x find the cost function. c(x)=___find the profit function. p(x)=at what quantity is the smallest break-even point ? a.dollars b.servings of cat food c.bins of cat food d.grams of cat food
If the revenue function is equal to R(q) = 0.6q, the cost function is equal to c(q)= q/5 + ln(3q+1) + 1, the marginal cost function is Cm(q) = 3q+16/15q+5, at what levels of production are the cost and revnue functions growing at the same rate?
Suppose the JJJ Corporation has a cost function of y = 9000x + 180,000 and a revenue of y = 11,000x . What is the BEP of the JJJ Corp.? (USE Excel)
Suppose a company has fixed costs of $1500 and variable costs of (3/4)x + 1120 dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is 1200 − (1/4)x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.)x = (b) Find the maximum revenue. (Round your answer to the nearest cent)$ (c) Form the profit function, P(x), from the cost and revenue functions.P(x) = Find maximum profit. (Round your answer to the nearest cent.)$ (d) What price will maximize the profit? (Round your answer to the nearest cent.)