uppose we know that p=1,056- D/5, where p = price in dollars and D = annual demand. The total cost per year can be approximated by $1,000+ 2D2. a.Determine the value of D that maximizes profit. b.Show that in part(a) profit has been maximized rather than minimized. c. Find the maximum profit Show complete solution.
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Suppose we know that p=1,056- D/5, where p =
a.Determine the value of D that maximizes profit.
b.Show that in part(a) profit has been maximized rather than minimized.
c. Find the maximum profit
Show complete solution.
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- You are analyzing a new company’s records projecting their profits using a marginal profit function, P′(x), where P is profit, in thousands of dollars, and x is the number of items they sell, in hundreds. the integral is from 5 to 1 for P ′(x) dx = 22. If the company projects to earn $26,000 of profit from selling 500 items and $7000 of that revenue from selling 100 items, what is their projected cost from selling 100 items?A firm's total revenues depend on the amount produced (q) according to the function R=240 q-q^(2) Total costs also depend on q:C=q^(2)+60 q+120 a) What level of output should the firm produce in order to maximize profits? What will profits be? b) Show that the second order conditions for a maximum are satisfied at the output level found in part b) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are the benefits and costs of increasing the units of X-brand energy drink (in a 500 ml bottle).A. What is the profit function of X-brand energy drink production?
- ANSWER TRUE OR FALSE: No need for long explanation. 1. The long run economic profit will remain positive if there are high barriers to entry. 2. The success of a collusive agreement declines with the increase in the number of members. 3. If the Net Present Value of the expansion project is positive, this means that it is advantageous to expand.Which of the ff statements are true about cost function a. It estimate the total cost of production given a specific budget b. It helps predict what the marginal cost would be to produce a product at different levels of output c. It allows management to evaluate how efficiently the production process was at the beginning of the operation period d. It helps manager understand the price behavior of the product A firm profit maximization point is where a. Total revenue Is greater than total cost b. Marginal revenue is equal to marginal cost c. Marginal revenue is greater than total cost d. Marginal cost is less than total costSuppose your product sells for $1.20 per unit. The total cost of producing x units is C(x) = 50 + 0.20x + .001x^2 dollars. a.) Find the marginal revenue and marginal profit functions b.) Find the marginal profit when x = 400 c.) What is the approximate profit from selling the 401st unit? d.) Find the value of x for which the marginal profit is zero.
- True or false The Law of Diminishing returns implies that the marginal cost of production (MC) is increasing as output increases.Can you help me with these additional questions and can you show all the steps, please? (A) Aaryan is given some market research about home tuition. In particular, the demand curve as a function of price is Qd(P)=475/P. Will Aaryan’s business be profitable if the lesson fee of $45 is charged, as planned? Explain your answer. (B) Aaryan wants at least $15 per week in profit from this business. Can he adjust the price to be able to do this assuming the market research is correct?Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote. 1 Assume a firm faces these costs: total cost of capital = $4,000; price paid for labor = $20 per labor unit; and price paid for raw materials = $8 per raw-material unit. Originally the firm produced 2,000 units of output by combining its fixed capital with 200 units of labor and 500 units of raw materials. Now the firm improves its production process so that it can produce 3,000 units of output by combining its fixed capital with 100 units of labor and 500 units of raw materials. What happened to total cost? Multiple Choice TC increased by $2,000 TC decreased by $2,000 TC decreased by $4,000 TC remained unchanged 2 Assume a firm faces these costs: total cost of capital = $4,000; price paid for labor = $20 per labor unit; and price paid for raw materials = $8 per raw-material unit. Originally the firm produced 2,000 units of output by…
- A restaurant frequently offers a special prix fixe meal and has been charging $120 per person for the event. At that price, they’ve been averaging 40 customers each time. Their marketing firm has convinced them that they’ll gain a customer for every dollar they lower the cost of the event, and conversely lose a customer for every dollar they raise the cost. Their fixed cost per event is $$1200 and preparing each customer’s meal costs an additional $30. What are the break-even points in terms of customers served? Write the exact answer. Do not round. Separate multiple answers with a comma.Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your marginal cost decreases by $4. There are no fixed costs, and the first unit costs you $66 to produce. Use the given information to fill in the marginal cost of each unit, as well as the total cost and average cost of each level of output. Quantity Marginal Cost Total Cost Average Cost (Units) ($) ($) ($/unit) 1 $66 $66 $66 2 3 4 5 6 Suppose you receive a request for proposal (RFP) on a project for four units. Your break-even price for four units is _________ Suppose that if you get the contract, you estimate that you can win another project for two more units. The break-even price for those next two units alone is ________ .Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your marginal cost decreases by $4. There are no fixed costs, and the first unit costs you $66 to produce. Use the given information to fill in the marginal cost of each unit, as well as the total cost and average cost of each level of output. Quantity Marginal Cost Total Cost Average Cost (Units) ($) ($) ($/unit) 1 $66 $66 $66 2 3 4 5 6 Suppose you receive a request for proposal (RFP) on a project for four units. Your break-even price for four units is . Suppose that if you get the contract, you estimate that you can win another project for two more units.
