When the price of a kettle increases from OMR 15 to OMR 20, the quantity demanded drops from 3550 units to 2500 units. Calculate the elasticity of demand and comment on the degree of elasticity.
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- What two lines on a cost curve diagram intersect at the shutdown point?A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.Ariana Grande has just finished recording her latestCD. Her record company’s marketing departmentdetermines that the demand for the CD is asfollows:Price Number of CDs$24 10,00022 20,00020 30,00018 40,00016 50,00014 60,000The company can produce the CD with no fixed costand a variable cost of $5 per CD.a. Find total revenue for quantity equal to 10,000,20,000, and so on. What is the marginal revenuefor each 10,000 increase in the quantity sold?
- You are an accountant for a manufacturer of radios. The demand function for the tablets isp =40 − 4x2 where x is the number of tablets produced in millions. It costs the company$15 to make a tablet. (i). Write an equation for the manufacturer’s profit as a function of the number of tabletsproduced. (ii). The company currently produces 1 million tablets and makes a profit of $21,000,000,but you would like to scale up production a bit. What greater number of tablets couldthe company produce to yield the same profit? ThanksDon't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?If Jim’s Home Goods price elasticity of demand is −2, and its profit maximizing price is $6, then its: average cost is $3.00. average cost is $0.33. marginal cost is $3.00. marginal cost is $0.33. average cost is $5.67.
- i. Calculate the marginal cost, marginal revenue and profit for each unit of production. ii. How many units should the firm produce to maximise profit?Q2) A shop which sells T-shirts has a demand function and a total cost function given by the equations P = 240 − 10Q and TC = 120 + 8Q (a) Write down the equations for TR and profit. (b) Calculate the number of T-shirts which must be sold to maximize (i) profit, (ii) total revenue. (c) Write down the equations for MR and MC.Pat's Pizza Kitchen has the following total cost schedule. Output (pizzas per hour) Total cost (dollars per hour) 0 10 1 21 2 30 3 41 4 54 5 69 Use the data to draw Pat's supply curve. Pat's is a price taker. Draw a point to show the quantity of pizza supplied when the market price equals minimum average variable cost and Pat's continues to produce pizza. Draw a point to show the quantity of pizza supplied when the market price is $14 a pizza. Draw Pat's supply curve: Label the part at which Pat supplies zero pizza S0 and label the part at which Pat's supplies some pizza S1.
- Pat's Pizza Kitchen has the following total cost schedule. Output (pizzas per hour) Total cost (dollars per hour) 0 10 1 21 2 30 3 41 4 54 5 69 Use the data to draw Pat's supply curve. Pat's is a price taker. Draw a point to show the quantity of pizza supplied when the market price equals minimum average variable cost and Pat's continues to produce pizza. Draw a point to show the quantity of pizza supplied when the market price is $14 a pizza. Draw Pat's supply curve: Label the part at which Pat supplies zero pizza S Subscript 0 and label the part at which Pat's supplies some pizza S Subscript 1.A firm’s cost curves are given in the following table.(Photo) Complete the table. If the total fixed cost is RO80, Graph AVC, ATC and MC on the same graph. What is the relationship between the MC curve and the ATC and between MC and AVC?Suppose the market price is RO 40, how much will the firm produce in the short run? Calculate the total revenue also. Select one:a. None of the other three answersb. 320 ROc. 350 ROd. 240 ROAn industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost asfollows:Quantity Average Variable Cost1 $12 23 34 45 56 6a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market?c. In the long run, firms can enter and exit themarket, and all entrants have the same costs asabove. As this market makes the transition to itslong-run equilibrium, will the price rise or fall?Will the quantity demanded rise or fall? Will thequantity supplied by each firm rise or fall? Explainyour answers.d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.
