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- You are given the profit function: Profit = 100Q – Q2 – 100 – 0.5Q2a. In words, how would you find the quantity you should produce to maximize profits?b. What is the slope of this line at that optimal profit point, and how does its value tell you that you areat the optimal quantity?c. In words, what would the slope of that line be if you produced a quantity smaller than the optimalquantity? In words, what would the slope of that line be if you produced a quantity greater than theoptimal quantity?Young MBA Erica Cudahy can invest up to $20,000in stocks and loans. Each dollar invested in stocksyields $0.08 profit, and each dollar invested in a loanyields $0.13 profit. At least 40% of all money investedmust be in stocks, and at least $7000 must be in loans.Determine how Erica can maximize the profit earnedon her investments.11.2 An automobile retailer calculates that its loss on the sale of Type M cars is given by L(50) = 1,000 and L'(50) = −300, where L(x) represents the loss on the sale of x Type M cars. What do these values tell you about losses? The loss on the sale of Type M cars is $ , and the loss is decreasing at the rate of $ per additional Type M car sold.
- 2. Is it possible to avoid Diminishing Marginal Return? Why? Explain comprehensively.What is Law of Diminishing Return? Explain and show it with graph. What is Economic Region of Production? Explain. What are Ridge lines? Explain Isocost with diagram. What are the characteristics of Isocost? Explain with diagram-Profit maximization and loss minimization in monopoly market.Output Total Revenue ($) Total Variable Cost ($) Total Fixed Costs 1 1,000 750 500 2 2,000 1,250 500 3 3,000 2,000 500 4 4,000 3,000 500 5 5,000 4,500 500 What is the slope of the total revenue curve? At about how many computers per day do economic profits seem to be at a maximum? Graph the economic model of this firm.
- What is the rule in using the marginal analysis in making the optimal decision? a. the optimal output level is the point where the marginal benefit/marginal revenue is equal to the marginal cost. b. the optimal output level is the point where the marginal benefit/marginal revenue exceeds the marginal cost c. when the marginal costs start to exceed the marginal benefits (marginal revenue), the net benefits (profits) increase. d. as long as marginal benefit (marginal revenue) is greater than marginal cost, the net benefits (profits) decreaseplease give me correct answer of all parts and explain otherwise give Downvotea.What does shirking (goofing off) mean for firms and why is it a problem? b. What is the most effective method of reducing or eliminating shirking and why?
