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- Rosebud Private Limited produces cooking oil and has many competitors producing close substitutes products. The firm has the following revenue and cost functions. TR = 15Q – 0.3Q2 TC = 8Q + 0.02Q2 Where Q is output and price is in $. A. Identify the market structure the firm is operating in. Explain your choice. B. Determine the output that maximizes total revenue. C. Using marginal approach, determine the output and price that maximizes profit. (Hint: TR=P.Q) D. Determine the profit/loss of the firm. E. Based on approach in (c), illustrate using completely label diagram for situation that you obtain in (d). F. Is the firm operating in the short run or long run? Give your reasonManagement has at its disposal the following information : Demand ( price ) function : P = 600 - 0.50 Total cost function : C ( Q ) = 300+ 1000 Using the above functions , the marginal revenue function is ... Select one : O MR = 600 - QO MR = 600Q + 5Q2 MR = 600Q - Q2 O MR = 600 - 20PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. 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?
- Demand equation of private limited tiles estimated as P = 8000 - 24Q. find the marginal revenue when Q = 100Exotic Metals, Inc., a leading manufacturer of beryllium, which is used in many electronic products, estimates the following demand schedule for its product. Find the total revenue and marginal revenue schedules for the firm and complete the following table. Price Quantity Total Revenue Marginal Revenue ($/Pound) (Pound/Period) ($/Period) ($/Period) 25 0 0 18 1,000 18,000 18.00 16 2,000 14 3,000 12 4,000 10 5,000 8 6,000 6 7,000 4 8,000 2 9,000 Fixed costs of manufacturing beryllium are $14,000 per period. The firm’s variable cost schedule is as follows: Determine the average total cost and marginal cost schedules for the firm and complete the following table. Output Variable Cost Total Cost Marginal Cost (Pound/Period) (Per Pound) ($/Period) ($/Period) 0 0 0 1,000 10.00 24,000 24.00 2,000 8.50 3,000 7.33 4,000…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?
- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 Complete the table. Round off to the nearest dollar. At what price is the zero-profit point? At what price is the shutdown point?Describe two competitive companies with similar gross profit figures that ended up with dramatically different net operating income. Provide details of the two companies and include both qualitative and quantitative results to support your response.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.
- A particular item in the Picasso Paints product line costs $7 each tomanufacture. The fixed costs are $28,000. The demand function isq = -500p + 30,000 where q is the quantity the public will buy at a given price, p. 1) Write the expense function in terms of p.2) How much profit would the firm make if the price was $12?3) What is the revenue equation?6 Carefully read the case given below, critically analyze it and answer the questions that follow: ABC Electronics Limited, operating in Kathmandu Valley has the following demand and cost functions, P= 2000 - 10Q. TC = 1000 + 200Q, where Q= output in units, P = Price in Rs If the company wanted to maximize profit, what is the price-output combination and total profit and revenue? The management of the company realizes the need for capturing market. Therefore, it started to promote its product with the strategy of sales- revenue maximization instead of profit maximization What will be the price output combination, total profit and maximum TR under the condition of sales- revenue maximization?The table below displays the cost and output per week (in EUR) of the company «Creativia» which produces community textile face masks. Total Product Quantity Total variable costs, Euro 0 0 250 350 450 450 650 600 750 750 800 950 830 1300 850 1800 Assume the price is EUR 4,00 and is constant at any quantity, Calculate the profit at the profit-maximizing output and show the area of profit on the graph. Determine below what price would the firm exit the market in the long run. Explain your answer.