Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 23, Problem 3E
To determine
To show:
The profit maximizing quantity,
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Calculate the Total Revenue, Total Cost, and Profit for the firm below. Show your math.
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.
High total revenue does not necessarily mean maximum profit. Explain this statement
1c. Using Excel or grid paper, based on the above information, plot the demand curve, MR curve, MC curve and ATC curve. Label the profit-maximizing quantity and price, total cost, total revenue and profit.
Knowledge Booster
Similar questions
- Using the figure above, what is the total revenue for the firm?arrow_forwardIf 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.arrow_forwardUse the following table for questions Carving knives Home users Professional Chefs No-name brand $40 $70 High-end professional series $60 $130 How much would the firm make in revenue if it prices both its products successfully? Question 35 options: $110 $120 $130 $140arrow_forward
- Choose the letter/s of the correct answer/s. How are you going to maximize a profit if the price is given as 3 – 25D? A. Differentiate the price, then multiply the demand and subtract the total costs. Set equal to 0.B. Use the profit formula, then differentiate the total costs. Set equal to 0.C. Subtract the total costs from total revenue then differentiate. Set equal to 0.D. Differentiate the total price then subtract the total costs. Set it equal to 0.arrow_forwardMarginal Cost is equal to Marginal Revenue when Price= $13 and Quantity= 350, which is the profit-maximizing price.arrow_forwardlooking for: a. derive equation for marginal revenue and marginal cost b. IF output is Q=75, determine dollar values for MR AND MC c. recommend if the firm should keep, increase, or decrease output to maximize profit; why?arrow_forward
- Use the above figure. Total revenue at the profit-maximizing output isarrow_forwardDetermine the level of Q that maximizes total revenue. Determine the level of Q that minimizes the total cost. Determine the level of Q that maximizes the total profit.arrow_forwardMarketers strive to deliver a profitable product for their firm. Marketers must understand break-even point calculations and sales targets. Your firm has the ability to produce and sell 10,000 units with a variable costs are $350 per unit and your fixed costs are $250,000, what price must you charge to achieve $100,000 gross profit? Show your equations and calculationsarrow_forward
- Based on the following data for Al-Aqsa Company: (5 Marks) - Price = $10 - Average total cost = $6 - number of units produced = 1000 unit Calculate Profit per unit Total profitarrow_forwardBavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?arrow_forwardProfit Maximization with no price discrimination You are running a (small) chain of gourmet burger joints with two locations (San Antonio and Laredo) You have been charging $9 for your burger meal (fries, burger and soft drink). Across both locations, you sell 1400 meals per week at this price When you raised the price to $10 for the burger meal, your sales across the two locations fell to 1200 meals per week. For your costs, you have fixed costs of $3000 per week across the two locations. In addition, it costs you three dollars per burger in variable costs (ingredients, labor etc.) What is your combined cost function across the two locations Using the two prices above, estimate your combined demand function across the two locations Using the combined demand function from the previous question, calculate the profit maximizing price and quantity What are your (combined) weekly profits across the two locations?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning