2-14. A tennis racquet manufacturer is negotiating a lease on land to build a manufacturing plant. The price charged will be determined by p= $450 (0.1)D per tennis racquet. The manufacturer faces variable costs of $25 per tennis racquet. Fixed costs of manufacturing are currently $25,000, in addition to the value of the lease borisq being negotiated. (2.2) - a. For this situation, determine the optimal monthly sales volume for this product. Thob) San ou moil 262 dis Jeudmoo b. How high can the lease be in order for the firm to make a positive profit? decorats 2309b

2-14. A tennis racquet manufacturer is negotiating a lease on land to build a manufacturing plant. The price charged will be determined by p= $450 (0.1)D per tennis racquet. The manufacturer faces variable costs of $25 per tennis racquet. Fixed costs of manufacturing are currently $25,000, in addition to the value of the lease borisq being negotiated. (2.2) - a. For this situation, determine the optimal monthly sales volume for this product. Thob) San ou moil 262 dis Jeudmoo b. How high can the lease be in order for the firm to make a positive profit? decorats 2309b

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: Company E is trying to decide whether to buy a new technology machine for use in its production. In…

A: The profit function can be expressed as the difference between total revenue and total cost. The…

Q: A manufacturing plant has a potential production capacity of 1,000 units per month(capacity can be…

A: The fixed cost unit is $50 at the percent level of output. Thus at an 80 percent level of output,…

Q: Develop the nonlinear profit function for the tire company and determine the optimal price, the…

A: We first find the Total Profit function = Total Revenue - Total Cost Total Revenue = Volume x Price…

Q: Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product…

A: The market price of the product is $28The average variable cost is AVC=10−0.003Q+0.0000005Q2Fixed…

Q: ber Novelties ber Novelties is a direct sells company that sells small gadgets over the Internet.…

A: In order to determine a company's cost structure or the number of units that must be sold in order…

Q: Part – A: A Leading manufacturer of Action Figures is about to introduce four new Action Figures.…

A: Combined Fixed Cost = $75,000 A marketing research study predicts that for each unit sold of Noyan,…

Q: Ken’s firm is committed to reducing greenhouse gas by 10 tons per year. The firm’s cost of abating a…

A: Cost of carbon abatement = sum of marginal cost of abatement. Marginal cost of abatement is the…

Q: The difference between TC and TVC falls with increase in output True / False

A: Total cost is given as the sum of Total fixed cost and total variable cost. TC = TFC + TVC

Q: A factory produces chemicalK and effluent E which it dumps into the river. It affects the downstream…

A: In this question we have to find the optimal value of K, E and F

Q: 6. The minimum that suppliers will accept for the 8th unit of this product is a) $2 b)…

A: Answer - Need to find- The minimum that suppliers will accept for the 8th unit of this product is…

Q: A manufacturer of a new patented product has found that he can sell 70 units a week to the customer…

A: We are going to find the demand function to answer this question.

Q: A toy manufacturer makes miniature trucks. The pricep(in dollar) and the demandx(numberof miniature…

A: "You have posted multiple sub-part questions, I can solve only the first 3 parts. To get the other…

Q: A factory manager is planning to manufacture an electronic part. The fixed cost of operation is…

A: Production is the process of manufacturing commodities and services to meet human needs. The product…

Q: Company E is trying to decide whether to buy a new technology machine for use in its production. In…

A: The profit function can be expressed as the difference between total revenue and total cost. The…

Q: alculate the range for which each option minimizes cost.

A: Variable costs are expenses that change in proportion to the number of goods or services that a…

Question

2-14. A tennis racquet manufacturer is negotiating a
lease on land to build a manufacturing plant. The price
(0.1)D per
charged will be determined by p = $450
94301
0:19
tennis racquet. The manufacturer faces variable costs of
$25 per tennis racquet. Fixed costs of manufacturing are
currently $25,000, in addition to the value of the lease
being negotiated. (2.2)
and
2011
a. For this situation, determine the optimal monthly
19D
sales volume for this product.
How To Tu
We oil 202 snudism olditud moo
b. How high can the lease be in order for the firm to
bill
make a positive profit?
-
slicmar

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: Define microeconomic firm theory

VIEW

Step 2: Calculate the optimal monthly sales

VIEW

Step 3: Calculate how high can the lease be

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 2 images

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

18) An appliance company determines that in order to sell x dishwashers, the price per dishwasher must be p=660-0.4x. It also determines that the total cost of producing x dishwashers is given by C(x) = 5000+ 0.6x². What is the maximum profit? A) $103,900 B) $108,900 C) $113,900 D) $212,800
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? units
Jenni has decided to start knitting during quarantine. She decides to open an etsy shop where she can sellknitted hats. Each hat costs $4.50 in materials to produce, in addition to the fee of $150 to license her shop.She plans on selling each hat for $24.50. (a) Write the cost, revenue, and profit equations for Jenni’s hat buisness. (b) Determine the profit if 13 hats are sold.(c) Determine thebreak-evenpoint.
15 x+1160 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 16 Suppose a company has fixed costs of $4000 and variable costs per unit of 1. 1300 x dollars per unit. 16 (a) Find the break-even points. (Enter your answers as a comma-separated list.) (b) Find the maximum revenue. $. (c) Form the profit function P(x) from the cost and revenue functions. P(x) = %3D Find the maximum profit. $4 (d) What price will maximize the profit? (Round your answer to the nearest cent.) %$4 Need Help? Read It Watch It
A lash adjuster keeps pressure constant on engine valves, thereby increasing fuel efficiency in automobile engines. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation D (1.900-py0 10 What is the demand (0) when total revenue is maximized? What important data are needed if maximum profit is desired? G The total revenue is maximized when demand is 9500 units per month (Round to the nearest whole number) Select all important data that are needed if maximum profit is desired. DA Variable cost per lash adjuster B. Fixed cost per month C. Variable cost per engine valve D. Variable cost per gallon of fuel
Please show the solution to its corresponding answer stated in the problem.
Profit Analysis Unendo, is a large computer game manufacturer. They have estimated that the demand function for their game "Star Wars Battlefront III" is as follows... STAR WARE BATTLEFRONT p = 86 - 0.05q where p is the price of a game and q is the number of game produced and sold per week. They estimate that their cost function in dollars is ... Clq) = 179 + 5000; where the fixed cost is $5000 and the marginal cost is $17 per game Unendo wishes to maximize the weekly profit of producing and selling the game. Find the maximum profit they can earn. (Round your answer to 2 decimal places, if necessary)