A flour mill buys its wheat from two different farms, then processes the wheat into flour. Wheat fromFarm X costs the mill $7 per bushel, and wheat from Farm Y costs the mill $15 per bushel.The selling price (in dollars per bushel) for the mill's wheat can be modeled by p(x, y) =500 x y where x is the demand for the flour milled from Farm X's wheat and y is the demandfor flour milled from Farm Y's wheat. Assume that x and y may be zero (so the mill only buys fromone of the suppliers) and that the mill can by 1/2 of a bushel.Then the maximum profit is attained whenx =y =bushelsbushelsThe amount of the flour mill's maximum profit is $

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Answered: A flour mill buys its wheat from two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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BigSwaba Corp produces virus home test kits which it sells in the market. It pays a marketing company to post Instagram images of people using the kits in the comfort of their own homes. The demand for the kits and cost of production are as follows: 1 1 Cost: C=200+=q´ +m 1/2 Demand: p=48+m/: Where m is the firm's marketing expenditure. Assume the CEO of BigSwaba asks you to help the company maximize profit. а. How many kits should the company sell and at what price? b. What is the demand elasticity at this output level? C. What should their marketing budget be? Assume the CEO of BigSwaba realizes her bonus will determined not by profits, but by the firm's revenue. Maintaining the same marketing budget as in part a: d. What quantity should the firm produce to maximize revenue?
A retail chain will buy 900 cordless phones if the price is $30 each and 800 if the price is $40. A wholesaler will supply 350 phones at $40 each and 1400 at $70 each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means.
Based on Zangwill (1992). Murray Manufacturing runs a day shift and a night shift. Regardless of the number of units produced, the only production cost during a shift is a setup cost. It costs $8000 to run the day shift and $4500 to run the night shift. Demand for the next two days is as follows: day 1, 2000; night 1, 3000; day 2, 2000; night 2, 3000. It costs $1 per unit to hold a unit in inventory for a shift. a. Determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. (Note: Not all shifts have to be run.) b. After listening to a seminar on the virtues of the Japanese theory of production, Murray has cut the setup cost of its day shift to $1000 per shift and the setup cost of its night shift to $3500 per shift. Now determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. Show that the decrease in setup costs has actually raised the average inventory level. Is this…
An industrial firm makes two products, A and B. These products require water resources where they are very scarce. The products they make are unique, and hence they can set the unit price of each product at any value they want to. However, experience tells them that the higher the unit price for a product, the less amount of that product they will sell. The relationship between the unit price and quantity that can be sold is given by the following two demand functions: Assume for simplicity that the unit price for product A is (16 - A) and for product B is (18-2.5B). Suppose the total amount of A and B could not exceed the total amount of Tmax. Where Tmax = 10. Please use "Lagrange Multiplier" method to determine what are the amounts of A and B, and their unit prices, that maximize total revenue (Set the marginal increments at 1).
Exercise 5.4 A company is producing and selling branded milk with the following total cost function: CT(q)= 0.2q²+q+70. If the demand function for this brand of milk is: P=15-0.5q: a) Calculate the optimal price of milk, as well as the optimal quantity sold and the profits of the company. b) Calculate the price elasticity of demand in the equilibrium of the company. c) Justify why the company has an excess of productive capacity. d) Represent graphically.
please answer it using handwriting to understand it
Increasing demand from China has made New Zealand the world's biggest exporter of dairy products . Its exports of milk to China increased by 45 % in 2013. More than 300 000 hectares land in New Zealand have been transferred to dairy use from other forms of farming and forestry use since 2000. The increase in milk production has caused the average cost of its production to fall and changes in production methods have affected the price elasticity of supply of milk . Discuss whether the average cost of production always decreases when a firm increases the total output that it produces(Define economies of scale and diseconomies of scale Use of graph to explain ( if applicable ) Explain the various economies of scale e.g. purchasing economies of scale [ up to 5 ] Explain the various diseconomies of scale [ up to Brief conclusion)
Hi, I need help finding the correct solution for this problem. I have tried entering both "30" and "30.00" as the solution, but the program marked both as incorrect. I'm not sure whether I'm making a small error or if I'm completely off. Please help, Thank you.
A bookstore owner can sell 26 magazines at a price of $1.38 per magazine. If the price is $1.10, he can sell 30 magazines. The total cost to purchase x magazines is C(x) = 0.65x+7.75 dollars. Step 1 of 3: Assuming the demand function is linear, find an equation for D(x). Do not round your answer.
Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is: In(Q) = 0.200 + 0.550 In(p). where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is: In(Qa) = 2.600 - 0.200 In(p) + 0.150 In(p;). where p, is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton. Suppose pt = $109. Determine how the equilibrium price and quantity of processing tomatoes change if the price of tomato paste falls by 7%. If the price of tomato paste falls by 7%, then the equilibrium price will by S . (Enter a numeric response using a real number rounded to two decimal places.)
The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ Number
Ethanol, a fuel, is made from corn. Ethanol production increased 9.1 times from 2000 to 2019 (https://ethanolrfa.org/statistics/annual-ethanolproduction/). What effect did this increased use of corn for producing ethanol have on the price of corn and the consumption of corn as food? 1.) Use the line drawing tool to draw either a new demand curve (D₂) or a new supply curve (S₂) that shows how the increased use of corn for producing ethanol affects the market for corn as food. Properly label this line. 2.) Use the point drawing tool to indicate the new market equilibrium. Label this point 'e₂'. Carefully follow the instructions above, and only draw the required objects. $, price of corn Q₁ Q, quantity of corn as food S₁ D₁

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