12. The weekly demand for the LectroCopy photocopying machine is given by the equation p= 2000 - 0.04x dollars and x denotes the quantity demanded. The weekly total cost to manufacture these copiers is given by C(x) = 0.000002.x -0.02x² + 1000x + 120,000 where C(x) denotes the total cost in producing x units. (1 < x < 50,000) where p denotes the wholesale unit price in %3D %3D a. Find the Average Cost Function C(x), Revenue Function R(x), and Profit Function P (x). b. Find the marginal Average Cost Function, the marginal Revenue Function and the Marginal Price Function. c. Compute C'(3000), R'(3000), and P'(3000) and interpret their meanings.

12. The weekly demand for the LectroCopy photocopying machine is given by the equation p= 2000 - 0.04x dollars and x denotes the quantity demanded. The weekly total cost to manufacture these copiers is given by C(x) = 0.000002.x -0.02x² + 1000x + 120,000 where C(x) denotes the total cost in producing x units. (1 < x < 50,000) where p denotes the wholesale unit price in %3D %3D a. Find the Average Cost Function C(x), Revenue Function R(x), and Profit Function P (x). b. Find the marginal Average Cost Function, the marginal Revenue Function and the Marginal Price Function. c. Compute C'(3000), R'(3000), and P'(3000) and interpret their meanings.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Retailers offer massive discounts on Cyber Monday. Does that mean that they price inefficiently…

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: Suppose the demand function to be Qd=600-5P when Qd is the quantity demanded and P stands for price.…

A: The demand function to be: Qd=600-5P Qd = Quantity demanded Px = Price

Q: Gerald makes a new brand of shoes that has a unit cost of $75.95 per shoe and a price elasticity of…

A: Given the unit cost and the price elasticity of demand, you can apply the calculation derived from…

Q: For the following demand. function: Q(P) 2142-17P = Calculate the price where the quantity demanded…

Q: the consumer demand for a given product (where x represents number of units and “p” represents price…

A: Price elasticity of demand refers to the percentage change in quantity demanded due to percentage…

Q: Rogers purchased 60 tins of paracetamol at shs. 12,500 each from Abacus Pharma. Two months later the…

A: In following graph, initial position is at point A where price is P0 (= 12,500) and quantity…

Q: In 2019, a ski resort increased the prices it charged for one-day ski passes and season passes. If…

A: Total Revenue is the product of price and quantity Elasticity measures the change in quantity due…

Q: With a marginal cost of MC = 10, the profit-maximizing quantity and price is MR = 50 - 2Q = 10 Q =…

A: In a monopoly market structure, There exists a single seller. The monopolist produces where the…

Q: A travel company has hired a management consulting company to analyze demand in 26 regional markets…

A: Please find the answer below. QUANTITY DEMANDED: Quantity demanded is a term used in economics to…

Q: Montresor Fortunato's PED for amontillado (a pale dry sherry) is known to be 1.78 when price is…

A: PED, price elasticity of demand is a measure that captures the responsiveness of a goods quantity…

Q: Sal’s Streaming Company streams TV shows to subscribers in the US and Canada. Demand is ??? = 50 −…

A: ans

Q: AlphaGas is a retail station which sells gasoline to consumers at the per-gallon price Pr. It is the…

A: Pr=20-2*Qr--- retail demand function (Alpha Gas) Pr-- retail price Qr--- retail quantity Production…

Q: In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand…

A: The quantity(Q) of a service or good consumers are ready to purchase at a specific price(P) is…

Q: Economics In this problem, p is in dollars and q is the number of units. (a) Find the elasticity…

A: An elastic demand is one in which the change in quantity demanded due to a change in price is large.…

Q: demand for a product is related to its selling price P (in dollars) by the equation n=2800-100p…

Q: You are an economist. Your friend started a new business selling masks. She asked for your help in…

A: Price elasticity of demand refers to the percentage change in quantity demanded due to percentage…

Q: Calculate the price elasticity of demand for healthcare in Japan using on data from year 2000.…

A: Price elasticity of demand measures the responsiveness of change in quantity demanded due to change…

Q: The method for calculating own price elasticity of demand is

A: The concept of price elasticity of demand is used to explain the responsive nature between the…

Q: AlphaGas is a retail station which sells gasoline to consumers at the per-gallon price Pr. It is the…

A: The profit maximization condition refers to the economic principle that a firm should produce at a…

Q: The price elasticity of demand for a textbook sold in the United States is estimated to be -2,…

A: ANS PED is a measure that gives us an idea about how the quantity (Q) supplied of a commodity change…

Q: S P2-12 A P;=10 DFlat Dsteep Q3=50 Q=90 Qi=100 Consider demand curve Dsteep When the price is raised…

A: Given, Initial price (A1) for steep= 10 New price (A2) for steep = 12 Initial Quantity demanded…

Q: thought for part (a) the Q will equal to 166. and for part (b) isnt the price elasticity equal to…

A: Price elasticity of demand measures the degree of responsiveness of the change in quantity demanded…

Q: 1.(a). Calculate the point "motorboat" price elasticity of demand when Py = $10000. Use Qs…

A: Price elasticity measures the change in quantity due to change in price. Income elasticity…

Q: You are an economist. Your friend started a new business selling masks. She asked for your help in…

A: Price elasticity of demand is the responsiveness of quantity demanded to a change in the price. It…

Q: The formula for the arc price elasticity can be written (where AQ denotes the change in Q) as: h =…

A: Thе arc pricе еlasticity of dеmand mеasurеs thе rеsponsivеnеss of quantity dеmandеd to a changе in…

Question

The weekly demand for the LectroCopy photocopying machine is given by the equation p=2000-.04x where P debates the wholesale unit price

12. The weekly demand for the LectroCopy photocopying machine is given by the equation
p= 2000 - 0.04x
dollars and x denotes the quantity demanded. The weekly total cost to manufacture these
copiers is given by C(x) = 0.000002.x -0.02x² + 1000x + 120,000 where C(x)
denotes the total cost in producing x units.
(1 < x < 50,000) where p denotes the wholesale unit price in
%3D
%3D
a. Find the Average Cost Function C(x), Revenue Function R(x), and Profit Function P
(x).
b. Find the marginal Average Cost Function, the marginal Revenue Function and the
Marginal Price Function.
c. Compute C'(3000), R'(3000), and P'(3000) and interpret their meanings.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 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

Q. Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + bP + cM + dPR. Where Q is the number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen charges for a can of tennis balls, M is the consumers’ average household income, and PR is the average price of tennis rackets. The regression results are as follows: a. Discuss the statistical significance of the parameter estimates a^, b^, c^, and d^ using the p-values. Are the signs of b^, c^, and d^ consistent with the theory of demand? Wilpen plans to charge a wholesale price of $1.65 per can. The average price of a tennis racket is $110, and consumers’ average household income is $24,600. b. What is the estimated number of cans of tennis balls demanded? c) At the values of P, M, and Pr given, what are the estimated values of the price (E^), income…
the demand function for Netflixis ()(pD), where (p) is the price in dollars. For their “Basic” plan, Netflixcurrently charges ($9)per month, and it plans to raise the price to increase revenues:
For the demand function = 200 − 3? , calculate the arc price elasticity for a change in price from ? = 50 to ? = 45.
Suppose that the price per unit p as a function of the demand is p=√1056 - 2x. (a) Calculate the price elasticity of demand when = 305. 305 therefore the demand is elastic 1056 - 2(305) n = (b) Calculate the price elasticity of demand when x = 406. 406 1056 - 2(406) η = therefore the demand is inelastic (c) Find the demand x that gives unit elasticity. x = 528
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 95e−3p2 + p, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥400. E = _____ Interpret your answer. The demand is going down/up by ____ % per 1% increase in price at that price level. Thus, a large price decrease/increase is advised. (b) At what price will revenue be a maximum? ____ hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) ______ paint-by-number sets per month
Suppose you did an analysis regarding the sensitivity of tea to the price of tea. You estimated the price elasticity of demand to equal 0.5. Explain this finding
a) The demand function for a product is p = 60 3-9/15) where q is the number of units and p is the price of one unit. At what price will the demand be 15 units? How many units will be demanded if the price is $41.60?
The price elasticity of demand for a product is 0.51. A percentage change in price is 17%. The initial quantity of the product is 190 units. Calculate the new quantity of the product, and use the midpoint method
Q. Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + bP + cM + dPR. Where Q is the number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen charges for a can of tennis balls, M is the consumers’ average household income, and PR is the average price of tennis rackets. The regression results are as follows: a- Discuss the statistical significance of the parameter estimates a^, b^, c^, and d^ using the p-values. Are the signs of b^, c^, and d^ consistent with the theory of demand? Wilpen plans to charge a wholesale price of $1.65 per can. The average price of a tennis racket is $110, and consumers’ average household income is $24,600. b. What is the estimated number of cans of tennis balls demanded? c) At the values of P, M, and Pr given, what are the estimated values of the price (E^), income…
If possible, please include made-up numerical values.
-0.06 The short-term demand for crude oil in Country A in 2008 can be approximated by q = f(p) = 1,952,082p where P represents the price of crude oil in dollars per barrel and q represents the per capita consumption of crude oil. Calculate and interpret the elasticity of demand when the price is $62 per barrel. The elasticity of demand for oil is (Type an integer or a decimal.)