Find the maximum profit and the number of units that must be produced and sold in order to yield the maximum profit. Assume that revenue, R(x), and cost, C(x), are in thousands of dollars, and x is in thousands of units. R(x) = 7x- 4x, C(x)=x° - 5x² + 4x +1 The production level for the maximum profit is about units. (Do not round until the final answer. Then round to the whole number as needed.)

Find the maximum profit and the number of units that must be produced and sold in order to yield the maximum profit. Assume that revenue, R(x), and cost, C(x), are in thousands of dollars, and x is in thousands of units. R(x) = 7x- 4x, C(x)=x° - 5x² + 4x +1 The production level for the maximum profit is about units. (Do not round until the final answer. Then round to the whole number as needed.)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 7MC

See similar textbooks

Similar questions

6. Let p(x) = 4 – 0.0002x be the price (in TL) of each unit of a certain product required to attract a demand of x units in a year and let C(x) = 600 + 3x be the total cost of producing x units of the product in a year. (a) (- as large as possible? What is the number of units that should be produced to make the yearly profit (b) What is the yearly profit in case (a)
Crawford Computing finds that its weekly profit, in dollars, from its production and sale of x laptop computers is P(x)=-.002x^3-.15x^2+400x-800 Currently, Crawford builds and sells 9 laptops weekly. (a) what is the current weekly profit? (b) how much profit would be lost if production and sales dropped to 8 laptops weekly? (c) what is the marginal profit with x=9? (d) use answers from parts (a) and (c) to estimate the profit resulting from the production and sale of 10 laptops weekly.
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? units
) A company manufacturing laundry sinks has fixed costs of $100 per day but has totalcosts of $2,500 per day when producing 15 sinks. The company has a daily demand functionof q = 360 − p, where q is the number if laundry sinks demanded and p is te price ofa laundry sink. Find a function for the average cost of this company. (c) If production increases continuously, what is likely to be the average cost per sink? (d) How many laundry sinks will the company need to produce in order to maximise it′s profits? (e) What is the maximum profit?
Given Cost and Price (demand) functions C(q) = 110q + 45000 and p(q) = - 2.8q + 800, what profit can be earned if the price is set to be $550 per item? U The profit is $ 1,?9 (Round to the nearest cent.) A company produces a special new type of TV. The company has fixed costs of $499,000, and it costs STT00 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to $2000. Assumo a linear demand. What is the marginal profit if 200 TVs are produced It is $ 0 per item. (Round answer to nearest dollar.)
Cost, revenues (dollars) 4.00 3.50 MC 20 Quantity ATC MR If this firm is currently producing 20 units of output, this firm:
show calculations A wheat seed dealer has a cost function: C = 100 + 20Q +Q2. Inverse demand is: P = 620 -2Q. Maximum profit is: A. 38,400 B. 36,200 C. 39,200 D. 29,900 Handwritten solution not required correct answer will get instant upvote.
15 Suppose a company has fixed costs of $2100 and variable costs per unit of x + 1500 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 16 1600 1/64 (a) Find the break-even points. (Enter your answers as a comma-separated list.) -x dollars per unit. X = (b) Find the maximum revenue. $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find the maximum profit. $ (d) What price will maximize the profit? (Round your answer to the nearest cent.) $
A firm can produce only 2900 units per month. The monthly total cost is given by C(x) = 400 + 200x dollars, where x is the number produced. If the total revenue is given by R(x) = 350x − 1/100 x2 dollars, how many items, x, should the firm produce for maximum profit? a. x =______ items b. Find the maximum profit.
1. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. • Total cost = Fixed cost + Variable cost • Revenue = Demand * Price • Profit = Revenue – Total cost 1.1. Develop the equations for total cost and total revenue. 1.2. Find the breakeven quantity.
function for the lightweight compasses is given by p = 40- 4q²where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (i) Write an equation giving profit as a function of the number of lightweight compasses produced. (ii) At the moment the company produces 2 million lightweight compasses and makes a profit of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit? Type your answer here:
A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p= 200-0.05D where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is $15000 per month and the variable cost is $50 per unit. a. What is the number of units that should be produced and sold each month to maximize profit? b. What is the domain of profitable demand during a month? Show your spreadsheet.