What is the expected profit if Yaster Inc. produces and sells 22,798 thingamabobs? $ Round to the nearest dollar. Note: The profit may be negative, if Yaster Inc. experiences a loss.
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- The Lumins Lamp Company, a producer of old-style oil lamps, estimated the following demand function for its product:Q = 120,000 - 10,00Pwhere Q is the quantity demanded per year and P is the price per lamp. The firm’s fixed costs are $12,000 and variable costs are $1.50 per lamp.a. Write an equation for the total revenue (TR) function in terms of Q.b. Specify the marginal revenue function.c. Write an equation for the total cost (TC) function in terms of Q.d. Specify the marginal cost function.e. Write an equation for total profits (π) in terms of Q. At what level of output (Q) are total profitsmaximized?What price will be charged? What are total profits at this output level?f. Check your answers in Part (e) by equating the marginal revenue and marginal cost functions, determined in Parts (b) and (d), and solving for Q.g. What model of market pricing behavior has been assumed in this problem?Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function4? = 35 − 0.5?. If total fixed cost is GH¢80 and average variable cost per unit function is 3? −51+325/Q, where Q is number of tooth paste produced and P is the price per tooth paste (in GH¢).What is the total profit at the profit maximizing level of output, and what is the best pricing policyoption?The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed: P=1,265−9Q�=1,265−9� The cost analysis department has estimated the total cost function for the poster bed as TC=Q33−15Q2+5Q+24,000TC=�33−15�2+5�+24,000 Short-run profits are maximized when the level of output is and the price is . The total profit at this price-output level is . The point price elasticity of demand at the profit-maximizing level of output is . The level of fixed costs the firm is experiencing on its bed production is .
- PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. 1. Given the market price of Pak$ 50 how many units should the firm produce? how many firms are competing in this market in short-run? How many firms will be in the industry in the long-run?Lefola Limited is the only manufacturer of product G_Easy in the Popa Land. It has provided documented levels of demand at certain selling prices for product G_Easy which are as follows: Price per unit Demand Units Total costs 7 000 0 3 000 6 000 1 5 000 5 000 2 8 000 4 000 3 12 000 3 000 4 17 000 2 000 5 23 000 1 000 6 30 000 Required: Using a tabular approach, calculate the marginal revenues and marginal costs for product G_Easy at the different levels of demand, and so determine the selling price at which Lefola Limited’s profits are maximized.The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed: P=1,760−12Q�=1,760−12� The cost analysis department has estimated the total cost function for the poster bed as TC=Q33−15Q2+5Q+24,000TC=�33−15�2+5�+24,000 Short-run profits are maximized when the level of output is and the price is . The total profit at this price-output level is . The point price elasticity of demand at the profit-maximizing level of output is . The level of fixed costs the firm is experiencing on its bed production is . What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated? Increase No change Decrease Price Charged Output Produced Profits Generated
- The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed:P = 1760 - 12QThe cost analysis department has estimated the total cost function for the poster bed asTC = (1/3)Q3 - 15Q2 + 5Q + 24,000a. Calculate the level of output that should be produced to maximize short-run profits. b. What price should be charged? c. Compute total profits at this price-output level. d. Compute the point price elasticity of demand at the profit-maximizing level of output. e. What level of fixed costs is the firm experiencing on its bed production? f. What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated?PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. a- Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC Average Variable Cost AVC Average Fixed Cost AFC b- Given above costs can you determine what will be the firm’s production in Stage 1? c- What is the breakeven price and breakeven quantity for this firm?Moses Inc. is a small electric company that provides power to customers in a small rural area in the Southwest. The company is currently maximizing its profits by selling electricity to consumers at a price of $0.15 per kilowatt-hour. Its marginal cost is $0.05 per kilowatt-hour, and its average cost is $0.15 per kilowatt-hour. A government regulator is considering a proposal to regulate the firm’s price at $0.05 per kilowatt-hour. Would such a policy improve social welfare? Explain
- Given the following total revenue (TR) and total cost (TC) functions for a firm, write down the firm’s profit function. Determine the level of output the firm should produce in order to maximize profits by using the first-order condition. Confirm that this quantity represents maximum profits by using the second-order condition.TR=4000Q−33Q2TC=2Q3−3Q2 +400Q+5000For a company with (inverse) demand function P = 4,510 - 55Q and cost function C = 88,000 + 660Q, let QR, QU, and QP denote, respectively, the quantities that maximize revenue, per-unit profit, and overall profit. Which of the following statements is true?A. QU > QP > QRB. QP > QU > QRC. QU > QR > QPD. QR > QU > QPThe industry demand function for bulk plastics is represented by the following equation:P = 800 - 20Qwhere Q represents millions of pounds of plastic.The total cost function for the industry, exclusive of a required return on invested capital, isTC = 300 + 500Q + 10Q2where Q represents millions of pounds of plastic.a. If this industry acts like a monopolist in the determination of price and output, compute the profit-maximizing level of price and output.b. What are total profits at this price and output level?c. Assume that this industry is composed of many (500) small firms, such that the demand function facing any individual firm isP = $620Compute the profit-maximizing level of price and output under these conditions (the industry’s total cost function remains unchanged).d. What are total profits, given your answer to Part (c)?e. Because of the risk of this industry, investors require a 15 percent rate of return on investment. Total industry investment amounts to $2 billion. If the…