1. Determine the profit-maximizing quantity, the profit-maximizing price and the profit of the firm given the following inverse demand function: P = 400 – 5Q and the marginal cost of 140.
Q: 3. The Deatherfuster Cleaning Company receives a report from a consulting firm indicating that the…
A: Introduction Here demand and cost of a company named as Deatherfuster has given. Demand function for…
Q: A hair salon, has very loyal customers and faces a weekly demand for blowouts equal to qD = 1,040 –…
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Q: Consider a market with the following inverse demand function, p = 140 - 3Q and constant marginal…
A: Here we calculate all the following terms by using the given demand function and marginal cost so…
Q: The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average…
A: Decisions about how long to stay in the market and how much to produce must be made by businesses in…
Q: Questions 21-25 relate to the following information. Suppose a firm faces demand function…
A: Given, Demand function P(q)=200-q Cost function C(q)=100+3q2
Q: Assume that the market price for bagel services is 42 and store produces 30 units of the bagel.…
A: (i) TR = P x q = 42 x 30 = 1260 SRTC = 50 + 2 x 30 + 30 x 30 = 50 + 60 + 900 = 1010 Profit = TR -…
Q: 7. A firm's revenue function is R(q) = 90q - 2q². Its cost function is C(q) = 104 + 6q+1.5q² a)…
A: The additional revenue that a firm receives from selling one more unit of its product is termed…
Q: Using the graph on the next page, do the following problems: Determine the profit maximizing level…
A: The marginal cost (MC) curve is calculated by dividing the change in total cost by the change in…
Q: 4. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its…
A: A firm in a perfectly competitive market is considered as a price taker. Because the firms in a…
Q: Suppose that the total revenue function of a firm is defined as TR= (P)(Q) where TR= f(Q). The usual…
A: Total Revenue:Total revenue is the total sales of the firm. TR is given by:
Q: Firm E is a perfectly competitive firm that sells sandwiches. Firm E currently is taking in $50,000…
A: a) According to the question given that the cost schedule of the sandwich market. The economic…
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A: Lagrangian optimization problem has a following setup : Objective function & Constraint…
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A: A connection between cost, sales, and profit is established via the contribution margin idea. The…
Q: The following figure shows the marginal cost curve, average total cost curve, average variable cost…
A: Marginal cost is defined as the cost which is incurred by the producer in order to produce one more…
Q: A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost…
A: Profit maximization is the short run or long run process by which a firm may determine the price,…
Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…
A: In a competitive market, there are large number of firms selling identical products. Firm's ATC is…
Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…
A: A perfectly competitive market refers to the market in which there is a large number of buyers or…
Q: 5. Profit maximization and shutting down in the short run Suppose that the market for microwave…
A: Profit maximization refers to a situation in which a firm is earning maximum profit by producing at…
Q: Assume a competitive firm faces a market price of $70, a cost curve of! C=0.002q + 30q + 750, MC =…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Answer the question on the basis of the following demand and cost data for a specific firm. (1)…
A: The study and evaluation of corporate financial concerns using abstract economic concepts and ideas…
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Q: Suppose that the total cost function of a firm is given as follows; TC = 500 + 2Q2 And the price…
A: A rational producer attempts to maximize his/her/their profit in the course of production by…
Q: (Enter your At a price of $18 per CD, a firm sells 40 CDs. If the slope of the demand curve is -…
A: Marginal revenue is the revenue generated from the sale of an additional unit of output. Total…
Q: 1. Below is the price and quantity information a firm. For example, at a price of $2.80, 60 units…
A: A demand curve refers to a graphical depiction of the connection between the price of a product and…
Q: Draw a correctly labeled graph showing the firm’s demand and marginal cost curves, and show the…
A: Introduction Total cost refers to the situation when there is a sum of both total fixed cost and…
Q: If the marginal revenue function for a manufactures product is MR = R' (Q) = 5 + 10 (1 + Q)−³ ; find…
A: Two fundamental concepts in economics are the marginal revenue function and the demand function. The…
Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…
A: Perfect competition is a concept in economics that represents an idealized market structure in which…
Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…
A: Given: To Find: The firm's optimal quantity of units and the profit/loss: If the price is below,…
Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…
A: Shutdown is the situation for firm in short run where they are recovering only variable cost and…
Q: Define Q to be the level of output produced and sold, and assume that the firm’s cost function is…
A: The total cost for the firm is given as The demand function is written as
Q: Consider a manufacturer making leather cases with a market demand function (weekly) given by…
A: Profit refers to the difference between total revenue and total costs when producing and selling a…
Q: 3. A firm faces the following total cost function and inverse demand functions: C = 3Q2 + 30Q = 10Q…
A: C=3Q2+30QP=10Q-13Q2+500QNow,TC=3Q2+30QMC=∂TC∂QMC=6Q+30Now,TR=P×QTR=(10Q-13Q2+500Q)QTR=10Q2-13Q3+500F…
Q: calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal…
A: Total Revenue is the value of earnings of the firm on question. It is the product of price charged…
Q: d. Find U-To’s first order condition for profit-maximization. e. Find the profit-maximizing price…
A: (d) The first order condition can be derived as follows.
Q: Problem 2. Suppose the market demand and inverse-demand for pizza in East Lansing is given by:…
A: The market demand is given as .The inverse demand is given as .The total cost function is .The…
Q: 2. There are n ≥ 2 profit-maximising firms producing a homogeneous good, competing in quantity, and…
A: We have demand function P=10-Q and cost C =2qi
Q: For a firm with a downward-sloping demand curve, which of the following is true at the…
A: Imperfect competitive firms face a downward sloping demand curve.
Q: 6. What is the output that maximize revenue for uie firm given the following demand function Q = 15…
A: The cost function is simply the initial cost plus the manufacturing cost Here we calculate the…
Q: The graph presents the costs and revenue for a purely Cost and revenue competitive firm, where the…
A: Answer to the question is as follows :
Q: 2.The marginal revenue of a firm is given by the following equation: MR(Q) = 22 +21Q + 16Q2 Where, Q…
A: The total of a company's sales revenues or income is referred to as its revenue. The change in total…
Q: Assume that a firm in a competitive market faces the following cost information. If the market price…
A: Firms in perfect competition are price takers as there are a large number of firms selling identical…
Q: any companies start with cost to determine price since revenue must cover cost for the firm to make…
A: Cost-based pricing is a pricing strategy where a business determines the selling price of a product…
Q: QUESTION 19 Suppose a firm's inverse demand curve is given by P = 340 - 0.80 and its cost function…
A: Profit is maximised at a point where marginal revenue is equal to marginal cost. At this point…
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- On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) PRICE (Dollars per lamp) 100 8 8 70 50 30 20 10 0 PRICE (Dollars per lamp) 90 Suppose there are 5 firms in this industry, each of which has the cost curves previously shown. 100 Demand 80 10 70 20 30 50 60 70 QUANTITY (Thousands of lamps) On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to right, starting with the point closest to the origin. You are given more…On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.2. Consider a market with 90 firms, each firm has a short-run total cost function as follows: TC(q) = 5q², and a marginal cost function: MC(q) = 10q. Market demand is given by equation Q“(p) = 200 - p.
- The monthly demand for dresses is given byP = 0.04Q + 25where P denotes the price and Q denotes the quantity demanded. The monthly cost function for dresses isC= −0.96Q²+ 4Q + 100 i. Find the revenue functionii. Find the profit functioniii. Find the marginal costiv. Find the marginal revenuev. Find the quantity the firm would produce if it were operating in a perfectly competitivemarket.4. A vertically integrated automobile company has an upstream engine division and a downstream assembly division. The demand for the company's cars is given by Q = 20-P. Each car requires one engine. The downstream division's total cost of assembling cars is TCD(Q) = 4Q. The upstream division's total cost of producing engines is TCv (Q) = Q². (a) Suppose that there is no outside market for engines. What is the price and quantity of cars produced by the company? (b) Suppose that there is no outside market for engines. What should be the transfer price for engines? [Hint: the transfer price of an engine should equal the marginal cost of engine production at the optimal quantity.] (c) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the price and quantity of cars produced by the company? (d) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the quantity of engines that the company buys or…Assume that the marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $700 and its average variable costs are $5. If the price of the product is $4 per unit and the firm produces the profit-maximizing level of output, How much profit firm will earn ?
- Consider the competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (AIC), and average variable cost (AVC) curves for a typical firm in the industry. COSTS (Dollars) PRICE (Dollars per shirt) 100 90 80 70 60 50 40 100 30 90 20 80 10 70 Price (Dollars per shirt) 15 20 25 55 70 85 0 60 50 40 30 20 10 0 0 For each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing 0 + 10 quantity. Also, indicate whether the firm will produce, shut down, or be indiferent between the two in the short run. Lasty, determine whether it will make a profit, suffer a loss, or break even at each price. 0 0 MC D D On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run…11:30 l 4G I Homework 4 (section 2.1-2 & 2.2).pdf Economic Mathematics (1) Name ID Section 2.2 Revenue, cost and profit 1. If the demand function of a good is given by P-80 – 3Q, the fixed costs are 100 and variable cost are 5 per unit. Work out the profit when Q-10. 2. Find an expression for the profit function given the demand function 20+P= 25 and the 32 +5. Find the value of 0 for which the firm average cost function AC = (a) breaks even (b) makes a loss of 432 units (c) maximises profit. 2/2 !!Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce: Price (S/doughnut) 0.35 p 0.30 0.25 0.20 0.15 0.10 0.05 0 0 10 20 30 40 50 60 Marginal Cost 70 80 90 Quantity (doughnuts/day) Average Total Cost 50 doughnuts per day. the quantity of doughnuts at which average total cost is minimized. the quantity of doughnuts at which average total cost equals the market price. the quantity of doughnuts at which marginal cost equals the market price.
- The profit function for a firm is given by n(q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm operating in the short-run or the long-run? How do you know? b. What is the output that maximizes profit for the firm? c. What is the maximized level of profit? d. In Excel or other software, provide a graph of the above profit function to confirm your mathematical results found above. Use output amounts ranging from 1 to 200. Put profit on the vertical axis and output on the horizontal axis.The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? d. Now assume the market price is $5.50 per pair, and Buddies produces the…QUES if you have the following graph MC MR $30 ATC AVC 20 15 75 80 100 Output