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- true or false? The sufficient condition for profit maximization must be satisfied that MC cuts MR curve from belowSuppose: AC= 150-1.5Q-1/3Q2(Q is square) Q=145-1.5P Then find optimum level of outputs (Q) at which profit is maximized and TC is minimized.A competitive company will maximize profits or minimize losses in the short term by generating production in which MR = P = MC, given that the price exceeds the minimum variable average cost. True or false
- The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what price should the manager of this firm put on the product? What level of output should be produced to maximize profits? How much profit will be earned? As per your solution provided The profit is maximized: MC=MR=P C(Q) = 5+Q2 MC= dC/dQ = 2Q ...what is dC and dQ here??? and why dC/dQ = 2Q?? please assist2. ABC Manufacturing has provided you with their demand function Qd = 2000-2p and supply function Qs = 60+5p, please answer the following questions: a. What is the company’s marginal revenue function? b. At level of output is profits maximized? c. At what price is profits maximized? d. What is total revenue at the profit maximization level of output?Habib Bank Limited estimates equation of demand of its product as: Q = 55 – 0.5P - (where P = price and Q = Quantity of output), and its total cost of production as TC = 20 + Q + 0.2Q2 Where TC = total cost and Q = Quantity of output) 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.? Marginal Cost MC? The output level that will maximize total profit and the amount of revenue and profit that Habib Bank would receive at optimal level of production.? The output level that minimizes average total cost.? please answer all questions
- Given: TC = 800 + 10Q +1.5Q2 ; Price = 1001. Identify the output level (Q*) that will maximize the profit of the firm. 2. Calculate the firm’s profit. If Price falls to 40, 3. Identify the new profit-maximizing output level. 4. Assess if the firm gaining profits or incurring losses and how much. 5. Justify why the firm should continue to produce at this price or not.A firm has revenue given by R(q) = 160q - 3q2 and its cost function is C(q) = 500 + 40 Q What is the profit-maximizing level of output? What profit does the firm earn at this output level? The firm maximizes profit by producing q = _______. (Enter your response as a whole number.) Corresponding profit is pi = $_________. Enter your response as a whole number).Suppose that firms in an industry have identicalcost structures and the industry is in long-runequilibrium. Explain how the profit motive couldlead to lower market prices.
- Learning how to use software takes time. So once customers have learned to use a particular software package, it is easier to sell them software upgrades than to convince them to switch to new software. What implications does this have for expected rates of return on R&D spending for software firms developing upgrades versus firms developing imitative products?An industry with many stores offer laminating as a service to their customers. Suppose that each store that offers this service has a cost function C(q)=50+0.5q+0.08q2 and a marginal costMC=0.5+0.16q. Suppose the going rate for laminating is R8.50 per sleeve which each store is compelled to charge. 1. Is the industry in long run equilibrium? Use calculations to either prove or disprove your findings.Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C=400+2q2, where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q;the fixed cost, FC, is $400). If the price of a watch is $100, how many watches should you produce to maximize profits? You should produce______watches.(Enter your response as an integer.) What will the profit level be? Profit will be $___________. (Enteryour response rounded to two decimal places.) At what minimum price will the firm produce a positive output? In the short run, the firm will produce if price is greater than $__________ per watch. (Enter your response as an integer.
