MARGINAL REVENUE (Dollars)Calculate the total revenue if the firm produces 2 versus 1 units. Then, calculate the marginal revenue of the second unit produced.The marginal revenue of the second unit produced is $Calculate the total revenue if the firm produces 4 versus 3 units. Then, calculate the marginal revenue of the fourth unit produced.The marginal revenue of the fourth unit produced is $Based on your answers from the previous question, and assuming that the marginal revenue curve is a straight line, use the black line (plus symbol)to plot the firm's marginal revenue curve on the following graph.2001801601401201008040200OrigiMarginal RevenueCancerCreate 4, 5, 6, 8, and 10 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.TOTAL REVENUE (Dollars)500450400300250200150100༔ ཧྭ ༔ ༔ ༔་༔་༔༞༄ 8500 A012345678910QUANTITY (Number of units)Total Revenue?Calculate the total revenue if the firm produces 2 versus 1 units. Then, calculate the marginal revenue of the second unit produced.The marginal revenue of the second unit produced is $

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Answered: MARGINAL REVENUE (Dollars) Calculate…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics Question
The marginal revenue of a firm is given by the following equation: MR(Q) = 29 + 22Q + 11Q2 Where, Q represents the quantity produced. Also given, the total revenue of the firm, when they produce 5 units of output, is 50, i.e., TR(5) = 50. Calculate the firm's total revenue function. What is the value of the constant term in the total revenue function? Calculate the total revenue of the firm when the firm produces 7 units of output.
Suppose that a firm cannot give up one input in exchange for the other and still maintain the same level of output. Calculate the elasticity of substitution in this case and elaborate on your answer.
Suppose a firm engaged in the illegal copying of DVD’s has a daily short run total cost function given by: STC = (q^2)+25 If pirated DVD’s sell for $20, how many will the firm copy each day? What will its profits be? What is the firm’s short run producer surplus at P=20? Develop a general expression for this firm’s producer surplus as a function of the price of pirated DVD’s.
suppose the average variable cost of production is $15 when output equals 110 haircuts and $17.26 when output equals 140 haircuts. If the firm wants to maximize profit how many haircuts will it produce at what cost? explain your answer.
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.50 per slice?Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Instructions: Enter your response as a whole number. If you are entering a negative number, be sure to include a negative sign (−). When the price is $1.50 per slice, the profit-maximizing level of output is slices per day. Instructions: Enter your response rounded to the nearest penny (two decimal places). At the profit-maximizing level of output, the producer's profit is: $ per day.
4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) 120 1 210 2 270 3 315 4 380 5 475 630
You are a fleet manager for a transportation company and, as such, are interested in the changes in the gasoline market since gasoline is an input of production for your company. A hurricane in the Gulf of Mexico disrupts oil refineries. In the short-run, you predict that this hurricane will, all else equal, Select one: a. Increase the supply of gasoline, pushing down its price and increasing your company's profit. b. Decrease the demand for gasoline, pushing down its price and reducing your company's profit. c. Decrease the supply of gasoline, pushing up its price and reducing your company's profit. d. Increase the demand for gasoline, pushing up its price and increasing your company's profit.
On the occasion of summer vacation, a student plans to open a milk tea shop. Before deciding to open a store, she wants to find out how profits fluctuate with fluctuations in selling prices and costs per unit of product. The selling price per cup of milk tea can range from VND 20,000.00 to VND 30,000.00 (the level of change is VND 1,000.00 each time) and the cost to make a cup of milk tea can range from VND 13,000.00 to VND 17,000.00 (the level of change is VND 500 each time). Knowing that the initial fixed cost is VND 24,000,000.00 and the number of cups of milk tea sold (Demand) depends on the selling price according to the formula: Demand = 24000 - 0.5 * Unit Price Use the two-dimensional sensitivity analysis to answer the following questions: a) What is the profit if the selling price is 23,000.00 VND and the cost per unit is 15,000.00 VND? b) How will profit change with each increase in cost of a product unit by VND 500.00 with a constant selling price of VND 25,000.00? c) What is…
3. Consider a firm that produces a single output Q using two inputs, q₁ and production technology is the Cobb-Douglas: Q = 9tq². 2 - Let pi be the price of q1, and p2 be the price of q2. Assume that the price of the output Q is 1. (b) Find the effect of an input price p2 change on the optimal quantity, q2, of the input good 2 using the implicit function theorem.
In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What is the firm Fixed Cost? Why? Also, use a graph to support your answer
Suppose that for a company manufacturing calculators, the cost, revenue, and profit equations are given by x² C = 70,000 + 30x, R=200x - A) Costs are increasing at the rate of $ (Simplify your answer.) where the production output in 1 week is x calculators. If production is increasing at a rate of 600 calculators per week when production output is 5,000 calculators. Find the rate of increase (decrease) in cost, revenue, and profit. B) Revenue is decreasing at the rate of $ (Simplify your answer.) C) Profits are (Simplify your answer.) 20 at the rate of $ P=R-C per week at this production level. per week at this production level. per week at this production level.

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