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- 3. Suppose that the total revenue function for a commod- ity is R = 64x- 0.02x². (a) Find R(100) and tell what it represents. (b) Find the marginal revenue function. (c) Find the marginal revenue at x = 100 and tell what it predicts about the sale of the next unit and the next 3 units. (d) Find R(101) - R(100) and explain what this value represents.If a firm wanted to reduce the annual EOQ cost as a percentage of the annual purchasecost by 50 percent, how would the demand rate have to change?a. Decrease by 50 percentb. Remain unchangedc. Increase by 50 percentd. Doublee. QuadrupleMC ATC 13 D AVC Units of output Figure 9.3 2.1) This firm's shutdown point corresponds to Point - (1M) 2.2) This firm will continue to operate in the short run, but incur an aconomic loss if the range of price is betveen - Explain your answer. (ZM) Working calculation: jun ad ao
- Which of the following statements is FALSE? OA A process costing system would be used by manufacturers of commodities, such as flour or sugar. OB A job order costing system would be used by manufacturers of custom made products OC. Aprint and copy shop would likely use a process costing system OD. A service firm would likely use a job order costing system. A major cattle feeding operation has entered into a firm commitment to buy 100,000bushels of corn to be delivered to its feed lot in Kansas. The corn is expected to be delivered in90 days. The company is committed to pay $1.50 per bushel. If corn yields are greater thanexpected, the price of corn could decline and the company would experience higher operatingcosts than necessary as a result of the commitment.In order to protect itself against falling corn prices, the company purchased an option to sellcorn in 90 days at a strike price of $1.51 per bushel delivered to a facility in Nebraska.1. Assume that at the time of acquiring the put option, the price of corn was more than $1.51.Explain why the option had a value of more than zero at inception.2. Assume that one of your colleagues made the following comment: ‘‘An option can neverhave a negative value; therefore, you can never lose money on an option.’’ Discuss whetheror not you agree with your colleague.3. Assuming that only the…Time left 0:3301 The diagram illustrates the demand curve, isoprofit curves and the marginal cost curve of M02020, a luxury car manufactured by MQ Motors Assume that MQ Motors currently chooses to operate at Point E. Which statement correctly describes the market of MQ20207 10,000 Price, marginal cost (5) P-55,440 Select one 0 0 10 20 Q-32 Q₂ Quantity of cars, Q Marginal cost hoprofit curve $150,000 Ropret ove $63.360 Demand turve 120 Oa Total surplus is not being masmedi Ob. Deadweight loss is the loss incurred by MQ Motors for not selling more cars Oc All possible gains from trade are being achieved as MG Motors operates at its profit maximising output and price Od. The amount of consumer surplus is the area ADP O Pareto efficient allocation is currently being achieved
- need d and e rest part are solved answer is here Solution:- Given Monthly demand function: Q=300-4P .... (1) Cost function: TC=15Q+1000 ..... (2) Part a Revenue = Price * quantity Q=300-4P⇒4P=300-Q⇒P=75-0.25Q So R=PQR=75-0.25QQR=75Q-0.25Q2 ... (3) To maximize revenue, differentiate the equation 3 with respect to Q dRdQ=75-0.5Q Put dRdQ=075-0.5Q=0⇒0.5Q=75⇒Q=150 Second-order condition for revenue maximization: d2RdQ2=-0.5<0 Revenue is maximization quantity is 150 From equation 3 R=75×150-0.25×1502R=5625 The maximum revenue is $5625 part b Differentiate equation 1 with respect to Q dQdP=-4 Price elasticity is calculated as e=dQdP×PQe=-4×75-0.25×150150e=-4×0.25e=-1 Price elasticity at revenue-maximizing point is -1 part c Total cost of producing 150 units: TC=15×150+1000TC=3250 Profit at revenue-maximizing level of output: Profit = revenue - costProfit =5625-3250Profit =2375K Total revenue at the profit-maximizing level of output is OA $1,200 OB. $2,500 OC. $4,800 OD, $6,000. Revenue and cost (dollars per unit) $20 11 10 200 250 300 ATC AVC QuantityQuestion Four a) A fim, focusing on producing meat pie has a demand function 20 25-0.25P. If fixed cost is 145 and variable cost per urit function is 2Q- 40 + , where Q is number of meat pie produced and Pis the price per unit: i. 275 Determine the number of meat pies that maximizes the company's profit. ii. How much should the fimcharge per unit of the product? iii. Find the total profit at the profit mximizing level of output. iv. Using the own price edasticity of demand, comment on the fimis pricing policy optiors. b) The production function for Amzonbuưgers, producers of delicious burgers at Sao Tome, is given as: Q = K%L% If the wage rate is $15 per unit of labour, and cost of capital is $1,920 per unit and you have 1 unit of capital which carmot be changed, and the firmemploys 8 units of labour; i. Calculate the fimts total cost ii. Calculate the fim's average cost ii. Estimate the marginal product of labour
- Question 8 Suppose Westland is the only cable TV provider in a city. The table below shows the demand schedule the firm faces and its total costs. What is Westland's optimal number of subscribers? O Price ($/month) Typed numeric answer will be automatically saved. Question 9 56 54 52 50 48 Quantity (subscribers) 20,000 24,000 28,000 32,000 36,000 Total cost ($/month) 1,000,000 1,156,000 1,316,000 1,480,000 1,648,000 ♫The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. What is the total revenue of the profit maximising firm in the short run? a) R720 b) R800 c) R960 d) R2 000 20 2 Cost, price (Rand) MC I 100 60 80 Output per day AC AVC PriceProblem 1 A lash adjuster keeps the pressure constant on engine valves, increasing automobile engines' fuel efficiency. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation: D=(2,000-p)/0.10. 6 a) What is the demand (D) when total revenue is maximized? b) What important data are needed if maximum profit is desired? & 7 IAA fg 8 DII myhp np f10 DDI 9 fi Po 112 prt sc