Answered: The manufacturer of smart printers is…

The manufacturer of smart printers is trying to decide what price to set for its product. The demand and cost function are assumed to be as follows: P = 80 -2Q TC= 160 +50Q-1.5Q ²

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

See similar textbooks

Related questions

Q: The last time The Economist checked, a Big Mac costs $5.65 in the US while it costs 13.43 zloty…

A: Given information: A Big Mac cost in the United States is $5.65 The same Big Mac cost in Poland is…

Q: The food service company running a dining hall provides cafeteria and catering services to a firm…

A: Production costs imply all of the direct and indirect costs businesses face from producing a good or…

Q: ABC Company in New York is financially distressed. It needs the revenue generated by a huge volume…

A: Buyers: A buyer's market is a market for a particular product or service in which buyers enjoy…

Q: 4. Consider a market where every firm and every potential entrant has the iden- tical cost function…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three subparts for…

Q: Q3. A consumer with the utility function U(₁,2) = xx and her income $200 faces the market prices…

A: To find the tax revenue, we have to multiply the tax with the total quantity demanded

Q: The graph shows one of a firm's isoquants (blue line) and one of a firm's isocost lines (dashed red…

A: Optimal input demand problem: The optimal input demand bundle is such that at that bundle the firm…

Q: The country imposes a 50% tariff. Complete the following: Price Quantity Demanded Domestically…

A: The tariff is the tax on the imported goods. And this tax is taken by the government of the country…

Q: ► Money and Banking • What is money • Money creation: banking system, Central Bank, Money multiplier…

A: Money Money is a medium of exchange that is widely accepted in transactions for goods, services, or…

Q: A small business owner can invest any amount of effort e ≥ 0 to produce output valued at 2e. The…

A: Value of product = 2e Cost of production = e2 Government expropriates a fraction = 2e (1-t ) - e2 In…

Q: speculative bubble occurs when O Buyers use credit to make purchases they cannot afford O Investors…

A: "Since , multiple questions has been asked by you , we will solve first question for you. Please…

Q: How were the figures calculated?

A: Answer is given below

Q: Explain any appropriate criterion for classification of goods based on income and substitution…

A: Expanded purchasing power affects consumption, while changing relative pay and costs affect…

Q: If the economy is inequilibrium around the neoclassical zone of the Aggregate Supply curve, a/an ___…

A: Neo-classical believes that market system works efficiently without government intervention. The…

Q: In the bank balance sheet below, what is the amount of Loans held by the bank? Reserves Securities…

A: Net worth is actually the difference between the banks total assets and total liabilities . So here…

Q: Explain carefully how the multiplier works, defining the multiplier as part of your explanation. If…

A: A multiplier is characterised as a variable that changes in response to changes in related…

Q: c. Home Depot and Lowes, Walgreens and Rite-Aid, McDonald's and Burger King, and other major pairs…

A: In an oligopoly market, there are few firms selling homogenous or differentiated goods, and all…

Q: Due to our labor force aging, the natural rate of unemployment will start to fall. a) True b) False

A: The aging workforce is as name proposes the piece of working people have arrived at a specific age…

Q: How does war affect the economic development and quality of life in a particular region?

A: The process by which low and less developed countries become economic powers is known as economic…

Q: this is about Introduction to Decisions Under Certainty on engineering economics subject.. please…

A: The present value is the current value of a future cash flow or series of future cash flows,…

Q: Could you please give me full detailed answer?

A: A pizza company runs its business in a franchisee mode and has decided to conduct a $1 promotion for…

Q: In free trade, the world price of goods directly imported by China is 400 US dollars; the price of…

Q: B.2. a) Explain why individuals may try to smooth their consumption over their lifetime. Illustrate…

A: Since you have asked multiple questions, we will solve the question asked by you. To get the…

Q: 2. (a) Consider the generalized linear regression model Yt = a + Bæt + Et. 4 Assume Est = 0 and that…

A: In econometrics, the method of Generalized Least Squares (GLS) is used when ordinary least square…

Q: For the competitive market and the perfectly competitive firm, an efficient allocation of resources…

A: Allocative efficiency is where the price is equal to marginal cost. In perfect competition, A firm…

Q: A £ 200-face-value coupon bond with a coupon rate of 10% that was bought for £ 220, held for three…

A: Face value of the bond = £ 200 Coupon rate = 10% or 0.10 So, the annual coupon payment = Face value…

Q: a. Suppose on the date these yields were observed, investors required a term premium of 0.1% to hold…

A: The yield curve represents the expectation of the return on the bonds. The yield curve is a…

Q: 6 Since 2019, the world economy has been hampered by the epidemic. Using macroeconomic theory, this…

A: 2019 outbreak not only affects the people's health but also had impact on world economy. whether…

Q: Assume that the production of cement also produces a substantial amount of air pol- lution and that…

A: Negative externality refers to the cost incurred to the third party due to the action of the other…

Q: 10. Today's spot bid-ask rates for the Japanese yen/U.S. dollar ($) exchange rate are 109.3 and…

Q: In a situation of excess inflation, an increase in the overnight rate will lead to al Select one: O…

A: The overnight rate implies the interest rate that depository institutions (e.g., banks or credit…

Q: 2. MULTIPLECHOICE: A firm owner Sally meets her banker, Tom, to work out the details of a one-year…

A: The information which has been given is as follows:- Expected inflation by both = 3% Nominal…

Q: 13) A firm's total cost function is TC = 0.5Q², where Q is the output level. What is the returns to…

A: As given cost function is TC = 0.5Q2 for return to scale calculate Average cost function is AC'(Q)…

Q: Explain how the Lorenz curve is used as a measure of Income Distribution. Is this a good tool? Why…

A: The Lorenz curve was created by American market analyst Max Lorenz in 1905. It is a graphical…

Q: 1.In income substitution effects acts in opposite direction, then the total effect on consumption is…

A: The income effect is the adjustment of the utilization of merchandise by shoppers in view of their…

Q: 6.11 Explain why there can never be a No-Show Paradox in an election using the following voting…

A: Voting is a political act that has been described in a variety of ways. According to a sociological…

Q: Describe two different fundamental ways that a firm can try to move towards being a monopoly

A: A monopoly is a type of market structure in which only one seller owns all of the markets of a given…

Q: The amount that a beggar outside the Toronto Stack Exchange Building can collect in Average revenues…

A: Consumer surplus is the difference between a consumer’s maximum willingness to pay for a product and…

Q: Suppose the demand curve for cars in former Czechoslovakia was characterized by the equation QD =…

A: Demand function QD = 2000 − 40P Supply function QS = 20P − 400

Q: 2. Governments use tax policy to... a. Generate revenue b. Influence consumption choices c. Offset…

A: "Government make use of tax policy to alter an economy of a country. Different types of taxes as…

Q: what are keynes 3 alternative graphs/sectors.

Q: In countries in which there is nonprice rationing for care, waiting time costs may be substantial.…

A: The practice of limiting the availability of some medical care to specific populations or all…

Q: Output ATC-1 ATC-2ATC-3 ATC-4 1500 $10 $15 $20 $30 2000 8 12 17 25 2500 9 10 15 20 3000 12 8 18 3500…

A: Diseconomies of scale can occur when the business expands so large that its unit cost would…

Q: Viktor is a lawyer who loves filing legal briefs and motions. His goal is to get as many legal…

A: According to the economics term, Opportunity cost refers to the value of what you have to give up in…

Q: If the M2 multiplier is currently 8 and people decide to increase the ratio of currency they hold…

A: The link between the financial base and the money supply is measured by the M2 multiplier. It is…

Q: Emeril owns his own restaurant, which earns a yearly total revenue of $1,100,000. The yearly cost of…

A: Accounting profit is the difference between the total revenue and explicit cost. Explicit cost is…

Q: Consider a two-state economy with two agents who have identical preferences given by…

A: The risk premium under the theory of uncertainty is the amount that a risk-averse person will pay to…

Q: An economy is in equilibrium. Calculate national income from the following: Autonomous consumption =…

A: Investment expenditures are a critical consider the short run macroeconomic examination of business…

Q: Question 54 Answer the next question(s) on the basis of the following marginal product data for…

A: Here the production function is not mentioned so finding the input combinations that would minimize…

Q: what is the economic significance of capas national shrine?

A: Capas National Shrine is a memorial that has been built by the government of the Philippines for the…

Q: Consider the information given in the table below. What is the equilibrium price in this market?…

A: The general idea of quantity supplied relates to the law of supply. The law of supply states that…

Question

The manufacturer of smart printers is trying to decide what price to set for its product. The
demand and cost function are assumed to be as follows:
P = 80 -2Q
TC= 160 +50Q-1.5Q ²

15:12
188
VPN 0.93
KB/S
Document (1) (18)
A O
BI U ο
274
The manufacturer of smart printers is
trying to decide what price to set for its
product. The
demand and cost function are assumed
to be as follows:
P = 80-2Q
TC= 160 +50Q-1.5Q 2
5
A
What price should it charge if it wants to
maximize its revenue in the short run?
What is the optimal quantity for the
printer under this price?
What will be the maximum revenue
1:3
:
- - -

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost perbarrel is $16. Price is related to demand according to the following linear equation.v -75,000 1,153.8pDevelop the nonlinear profit function for the brewery and determine the price that will max-imize profit, the optimal volume, and the maximum profit per year.
The cost, in dollars, of producing x yards of a certain fabric is C(x) = 900 + 12x - 0.1x² +0.0005x³ and the company finds that if it sells x yards, it can charge p(x) = 27-0.00021x dollars per yard for the fabric. (a) Graph the cost and revenue functions. y 8000 6000 4000 2000 y 15 000 10 000 5000 R C 100 R =² C 100 200 200 300 300 X 400 400 X Use the graph to estimate the production level for maximum profit. 283.092 x yards y 15 000 10 000 5000 y 15 000 10 000 5000 R 100 R C 100 200 200 (b) Use calculus to find the production level for maximum profit. (Round your answer to two decimal places.) 186.63 yards 300 300 400 400 X
Best Ink Printing Co. received an order to print a minimum of 50,000 tickets for a concert. They have three printing machines available to meet the order they received. The set-up cost of these machines and the unit cost/ticket printed using each machine along with their maximum production are provided in the table below: Machine A B 976400 C Cost per unit $18 $21 $24 Maximum Production 30,000 25,000 30,000 Formulate an all-integer linear programming model to find the required number of tickets produced by each machine in order to minimize the production cost. What is the optimal solution for the number of tickets produced by machine B?
if the selling price of a certain product is shown in the figure below and the variable cost per unit is 31. then the demand the gi maximum profit is 452units Ob. 470units Oc 455units Od. 450units Oe 445units if the selling price of a certain product is shown in the figure below and the variable cost per unit is 31. then the demand the gives maximum profit is +8D-1X1o D=1600 452units Ob 470units OC 455units Od. 450units 4n45units
A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $84309 per month. The variable cost per thousand board feet is $220.0 for demand 2176 units. The price charged will be determined by P-$739-0.07D per 1000 board feet. For this situation, calculate the profit for the mentioned scenario. Select one: a. 1045034.93 O b. 713586.68 C. 3498584082.68 d. 1213500.68
You're company manufactures on large scale unit and it has been shown that marginal or variable cost are given by this function (92-2x)sh where xis the number of units of output per annum the fixed costs are 800000 annually, it has also been shown that the marginal revenue which is the gradient ot the total revenue is given by (112-2x) ... required determine by integration the total cost, the total revenue , the break even point of your company and the number of units of output that would maximise total revenue
6:08 PM ě 3.5KB/s 1l 82 4G+ 01:52:56 Remaining Multiple Choice If breakeven point is 100 units, each unit sells for P30, and fixed costs are P1,000, then on a graph the: total revenue line and the total cost line will intersect at P3,000 of revenue O total cost line will be zero at zero units sold revenue line will start at P1,000 total revenue line and the total fixed cost line will intersect at P3,000 of revenue 56 of 64 II レ

The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 Dollars (8) 2000+ 7000- 6000 5000 000 3000 2000 1000+ -10 -1000+ 10 20 30 (a) What is the break-even point? e.g. (295,7650) (b) What are the fixed costs? $ TR TC If the selling price per unit is $70, and the variable cost per unit is $30: Percent of capacity= FC 40 50 60 70 80 90 100 Units enter the answer in the form (x,y) (c) If the maximum production capacity of the commodity is 100, express the break- even units as a percent of capacity? % (round to two decimal places if necessary)
Answer all parts (a)-(g) of this question.Mette has started Mersea Oysters. She aims to export oysters to Germany where she acts as aprice taker. After a couple of nights of calculations she believes that her cost function is givenby C(q) = 100 + 6q + 2q2, where q denotes kilos of oysters harvested. The market price shewill face in Germany is 50 per kilo.(a) [4 marks] Derive Mette’s marginal cost function.(b) [7 marks] Use your result from (a) to determine the profit-maximizing output level.(c) [7 marks] Explain in words why the supply function for a price taker is the same as themarginal cost function.(d) [8 marks] Calculate Mette’s profit. Illustrate marginal cost and profit in a diagram.(e) [8 marks] Now instead assume that the price is 22. Should Mette produce at this price?(f) [8 marks] Assume again that the price is 22 but that the fixed cost of producing (100) issunk and was taken in the previous period. Should Mette produce at this price in this case?(g) [8 marks] Assume again…
Answer all parts (a)-(g) of this question.Mette has started Mersea Oysters. She aims to export oysters to Germany where she acts as aprice taker. After a couple of nights of calculations she believes that her cost function is givenby C(q) = 100 + 6q + 2q2, where q denotes kilos of oysters harvested. The market price shewill face in Germany is 50 per kilo.(a) [4 marks] Derive Mette’s marginal cost function.(b) [7 marks] Use your result from (a) to determine the profit-maximizing output level.(c) [7 marks] Explain in words why the supply function for a price taker is the same as themarginal cost function.(d) [8 marks] Calculate Mette’s profit. Illustrate marginal cost and profit in a diagram.(e) [8 marks] Now instead assume that the price is 22. Should Mette produce at this price?(f) [8 marks] Assume again that the price is 22 but that the fixed cost of producing (100) issunk and was taken in the previous period. Should Mette produce at this price in this case?(g) [8 marks] Assume again…
(a) A micro-entrepreneur produces caps and hats for women. The output-cost data of the business is reproduced below: Output Total Cost 50 890 100 920 150 1000 200 1260 250 1470 300 1850 350 2410 Using the above data estimate total cost equation and determine the average and marginal cost functions. Dstermine the output rate that will minimize average tost and the perit
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets. The production manager of Bavarian Crystal Works estimates total and marginal production costs to be aq0 to noiinseu14 Isind TC = 10,000 + 40Q + 0.0025Q² and ivibe to l9v9i ani oi -MC = 40 + 0.005Q1oriism s Arol else noitee eaidT aigie s niged sW noilesimixam benistie iton to laval orfs.ot doagee sideixav, where costs are measured in U.S. dollars and Q is the number of wine decanters pro- duced annually. Because Bavarian Crystal Works is only one of many crystal produc- ers in the world market, it can sell as many of the decanters as it wishes for $70 apiece. Total and marginal revenue are tanad tan ait oT vtivins to briTR = 700 owd io anoilanut ed teoo where revenues are measured in U.S. dollars and Q is annual decanter production. a. What is the optimal level of production of wine decanters? What is the marginal revenue from the last wine decanter sold? and MR = 70 %3D b. What…