A firm faces the following average revenue (demand) curve: P = 120 − 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. i. What is the level of production, price, and total profit per week? ii. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit?

Q: Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: MU₁ MU2 P₁ P2 In words, please describe why this condition must be true. C. As we showed in class, a…

A: Profit maximisation may be the "goal," but how this aim is reached is what really matters and sets a…

Q: A firm faces the following average revenue (demand) curve: P= 130 - 0.02Q where Q is weekly…

A: Firm maximizes profit by producing at a point where marginal revenue is equal to marginal cost

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: 3. A firm's short-run total cost function is TC = 4q²-2q+7 he firm sells in a perfectly competitive…

A: The firm does not control over the price in the perfectly competitive market. The firm produces…

Q: PART. Use the following information to answer all questions: the demand curve D(x)=-x² +8x+9, the…

A: Total revenue is the product of price and quantity.  Profit is the difference between total revenue…

Q: Suppose total revenue and total costs are given by TR = 1000-8Q^2 and TC= 10Q^2. MR=100-16Q and MC =…

A: With the process of profit maximisation, a company or business aims to maximise profits by adjusting…

Q: If change in total revenue Is $300 and the marginal revenue is $30 Find the Change in output

A: The data presented in the question above is:- Change in total revenue = $300 Marginal revenue = $30…

Q: To find the firm’s profits from the sales figures, assume that the price is $30, that the marginal…

A: Apple / Google Advertise Don't Advertise 700, 700 900, 600 Don't 600, 900 800, 800

Q: When output is 1, total cost is 7, total revenue is 10, and marginal revenue is 10. What is the…

A: Perfect competition is a theoretical market structure in which there are many buyers and sellers,…

Q: The totul Revenus Function And total cost that faces Firm A ARE: TR=30Q = = 100 + 5Q + 0.02Q^2…

A: Total revenue is total receipts from selling goods. Total revenue is the price multiply quantity…

Q: The table below shows the short-run production function for Michelle's Accounting Company. Number…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Consider the total cost and total revenue given in the following table (Make sure to show all your…

A: A firm will maximise profit at a point where marginal revenue is equal to marginal cost and price is…

Q: Suppose a firm is operating in a competitive market and is maximizing profit by producing at…

A: Perfect competition is a market structure, in which a large number of buyers and sellers sell…

Q: b) A firm's total cost function is TC = 0.1Q³ -0.5Q² + 8Q + 10 and total revenue is TR = 52Q -0.25Q²…

A: As given TC = 0.1Q3 -0.5Q2+8Q +10 TR = 52Q - 0.25Q2 +8

Q: The short run supply curve for a firm in a perfectly competitive industry is its: A average cost…

A: Perfect competition is an ideal sort of market structure where all makers and purchasers have full…

Q: ijuppose the demand is q=D(p)=10200-100p. The cost of producing q units is q?/2 (note this implies…

A: Marginal Revenue is the money a firm makes for each additional sale. In other words, it determines…

Q: The figure below shows the long-run average cost curve for the only firm producing electricity in…

A: Economies of scale occurs when firm increases level of production and average of cost of production…

Q: Only typed answer You’ve been given a firm’s production and cost functions:   p = 132 − 2q MC =…

A: A perfectly competitive firm maximizes profit by producing output at a level where Price is equal to…

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: A manufacturer knows that:  His TR is given by Revenue = 23Q – Q2…

A: The point where the marginal revenue is equal to the marginal cost is the point of profit…

Q: Suppose total revenue and total costs are given by TR = 1000-8Q^2 and TC= 10Q^2. MR=100-16Q and MC =…

A: With the process of profit maximisation, a company or business aims to maximise profits by adjusting…

Q: PROBLEM No 1INTERPRET ALL THE RESULTS!! Demand equation of a producer is: P = 270 * Q- 2,4 * Q2 a)…

A: Demand: P = 270Q - 24Q2  Total Revenue Function: TR = P*Q = ( 270Q - 24Q2 )Q = 270Q2 - 24Q3  TR =…

Q: If total revenue increases at a constant rate, what does thiscondition imply about marginal revenue?

A: Marginal Revenue means the rate at which Total Revenue is either increased or decreased on sale of…

Q: Figure 2 Revenue, Costs 40 38, 30 26 60 100 130 MC ATC AVC Q MR=50

A: Perfect competition has the following features: There are many buyers and sellers.  The products…

Q: Suppose C(x), R(x), and P(x) are the total cost, revenue, and profit of producing items. Match the…

A: Total Cost refers to the total expenses incurred to produce the goods and services. It consists of…

Q: A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8…

A: Given: Price of the steel bar (P1 )=$ 30,000 Quantity demanded (Q1) =8 metric tons A 100% change in…

Q: A company sells one of its products for $42 each. The monthly fixed costs are $2700. The marginal…

A: Given information: A company sells its product for $42 each => P = $42 -------------------------…

Q: I. Desktop Publishing Software, Inc Desktop Publishing Software, Inc., develops and markets software…

A: P = 1000-1Q TC = 50,000 + 100Q

Q: At its current level of production a profit-maximizing firm in a competitive market receives $15 for…

A: A competitive market, often referred to as a perfectly competitive market, is a type of market…

Q: Suppose the demand curve for an individual firm in this market is highly elastic but not perfectly…

A: The demand curve for individual firm is highly elastic under the Monopolistic competition market…

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: "A profit maximizing firm seeks to produce at an output where its marginal revenue is equal to its…

A: Profit maximization:  Profit maximizing firms produces and sells the goods at the point where the…

Q: On the graph input tool, change the number found in the Quantity Demanded field to determine the…

A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…

Q: What is the fixed cost, when output is 1, total cost is 7, total revenue is 10, average revenue is…

A: Cost:Cost is defined as the expenditure. It is expressed in terms of money value in the production…

Q: When the local electricity company charges a price of $20 per kilowatt they sell 1,000 units. If…

A: Marginal revenue refers to the change in the total revenue due to a change in the output. It is…

Q: fill all table in attached photo: Marginal revenue per unit for the carpo products being $0.05 which…

A: Fixed Cost (FC): Fixed costs are expenses that do not change with the level of production or output.…

Q: Given cost and price (demand) functions C(q) = 100q + 41,000 and p(q) = - 2q + 890, what price…

A: Marginal revenue is the additional revenue earned after an additional unit is sold.

Q: A firm sells its product i two different markets. the inverse demand in market A is PA=72-5QA & in…

A: The fixed costs and the variable costs of the firms tend to be the major costs which a firm needs to…