110 3025 The profit function of a company is P(x) = =x+ - x3 x², the output that maximizes the profit is Select one: а. b. 55 С. 110 d. 600 е. 3025 f. None of the above
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- Looking at the Table, Profit, Cost and Revenue Functions, Quant is the quantity of output, C(Q) is the Total Cost of production for corresponding quantities of output, R(Q) is the corresponding Total Revenue at each level of output Q, if all output is sold and PRF(Q) is the Total Profit for each corresponding output level. PRF(Q) is calculated as R(Q)-C(Q). Using this information, does the company make its highest profit where R(Q) is highest? a. No, because the highest possible revenue may be at an output level where the cost of output may exceed the revenue generated at that output level. In this problem, the highest profit is at output level 15 Ob. Yes, because there is no way that cost can exceed revenue when revenue is maximized. Cc. No, because the highest possible revenue may be at an output level where the cost of output may exceed the revenue generated at that output level. In this problem, the highest profit is at output level 10 or 12 or in between. Od. Yes, because the…Average Total Cost ($ per tablet) Q=400 Number of Factories Q=100 Q=200 Q=300 Q=500 Q=600 1 400 300 200 240 300 720 540 350 180 160 250 540 3 720 400 170 160 200 360 The company, Peleton is a major manufacturer of indoor exercise trainers. Currently the company produces trainers using only one factory. However it is considering expanding production to two or even three factories. The table above shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of trainers produced by all factories.) Refer to the table. Which of the following is NOT true about the long- run averáge cost curve of Peleton's trainers? Peleton experiences diseconomies of scale at any quantity over 400 trainers. The long-run average total cost of production per trainer will be $170 when 300 trainers are produced in the long run. Peleton experiences diseconomies of scale at any quantity less than 400…Suppose that the marginal revenue for a product is MR=775 and the marginal cost is MC39sqrt(x+1), with a fixed cost of$906.00 Find the profit or loss from the production and sale of 3 units.
- You own a farm that requires spending of $93,318 to generate $275,393 per year. You discover that your farm is sitting on top of an oil-field that could generate $150,186 per year. Your economic profit of continuing to farm on the land is: (your answer must be rounded off to the nearest dollars, i.e., no decimal placesThe total cost equation for a firm producing two products is TC(Q1, Q2) = 25 + Q12 + 4Q22 + 5Q1Q2 (d) Suppose that the firm is currently producing 5 units of Q1, and 10 units of Q2, What is the firm's total cost of production? e) Suppose that the firm divests itself of the division selling Q1 to a competitor. How much will it cost the firm to continue producing 10 units of Q2? What is the total cost of producing both Q1 and Q2 if the firm producing Q1 produces 5 units?1200 100.0 20.0 F20 100 -100 A company produces school buses. The graphs of the Cost function (red) and the Revenue function (blue) are given on the figure. (You may click on the figure to see a bigger version.) The horizontal axes represents quantity in number of units. Cost and Revenue are measured in thousands of dollars. Answer the following questions. 1. What are the fixed costs? Answer: thousand dollars. 2. Suppose the current level of production is 19 buses. Should the company produce 20 th bus? Answer "yes" or "no" 3. Between 0 and 100, approximately what level of production maximizes the profit? (Or minimizes the losses if the company doesn't make any profit). Answer:
- *3.5 Assume that you are employed as an analyst at an interna- tional consulting firm. Your latest assignment is to do an industry analysis of the fast-growing "telemonica" industry. After extensive research on this combination cell phone and harmonica, you have obtained the following information: Long-run costs: Capital costs: $40 per unit of output Labor costs: $25 per unit of output No economies or diseconomies of scale in Industry currently earning a normal return to capital (profit of zero) I Industry perfectly competitive, with each of 100 firms producing the same amount of output Total industry output: 800,000 telemonicas. Demand for telemonicas is expected to grow rapidly over the next few years, especially in foreign markets, to a level four times as high as it is now, but (due to short-run diminish- ing returns) each of the 100 existing firms is likely to be producing only 100 percent more. a. Sketch the long-run cost curve of a representative firm. b. Show the current…H13). Importance of Understanding Cost Behavior Patterns Recognizing and understanding cost behavior patterns serve multiple purposes within a company. What are at least 4 of them and explain.мса 17 If a firm exhibits X-inefficiency, the implication is that: A unit production costs are higher than the achievable minimum В profits are higher than they are for other firms in the industry C I do not want to answer this question. marginal cost must be rising as the rate of production rises E economies of scale are limited by the size of the market F consumers are prepared to pay more for the substitute goods produced by other competing firms
- Give only typing answer with explanation and conclusionManager: If I can reduce my costs by $40,000 during this last quarter, my division will show a profit that is 10% above the planned level, and I will receive a $10,000 bonus. However, given the projections for the fourth quarter, it does not look promising. I really need that $10,000. I know of one way that I can qualify. All I have to do is lay off my three most expensive sales-people. After all, most of the orders are in for the fourth quarter, I can always hire new sales at the beginning of the next year. personnel Guide questions: 1. What is the right choice for the manager to make? 2. Why did the ethical dilemma arise? 3. Is there any way to redesign the accounting reporting system to discourage the type of behavior that the manager is contemplating?Suppose you own a small business. Last month, your total revenue was $8,800. In addition, you paid $3,500 in monthly rent for office space, $300 in monthly rent for equipment, $2,500 to your workers in wages for the month, and $1,900 for the supplies you used that month. If you correctly determine that your economic profit last month was $200, then it must be true that your implicit costs are $3,600 per month. your implicit costs are $600 per month. your implicit costs are $400 per month. your implicit costs are $1,800 per month.
