A manufacturer can produce at most 90 units of a certain product each year. The demand equation for the product is p = q - 100q+ 1800 and the manufacturer's average-cost function is12,000C=- 55q +. Determine the profit-maximizing output q and the corresponding maximum profit.qThe profit-maximizing output q is(...)

Firms engage in a process known as profit maximization to make sure that the best output volumes and…

A manufacturer can produce at most 90 units of a certain product each year. The demand equation for the product is p = q - 100q+1800 and the manufacturer's average-cost function is 2 12,000 q C = 39-55q+ Determine the profit-maximizing output and the corresponding maximum profit. L

A manufacturer can produce at most 90 units of a certain product each year. The demand equation for the product is p = q - 100q+1800 and the manufacturer's average-cost function is 2 12,000 q C = 39-55q+ Determine the profit-maximizing output and the corresponding maximum profit. L

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: PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and…

A: Given, Total cost (TC) = 500 + 10Q + 5Q2 Market demand Qd = 105 - (1/2)P Here, Q is the Quantity…

Q: A company determines that the demand function for a product can be modeled by p=220-0.02x where x is…

A: Profits are the excess of revenue receipts earned by a firm over the costs incurred in the…

Q: business sells items according to the following Cost and Revenue functions:…

A: * SOLUTION :-

Q: A firm’s total revenue and total cost functions are TR = 52q − q2 TC = q3/3 − 2.5q2 + 34q + 4 At…

A: Profit is the difference between total revenue and total cost. Profit = Total revenue - Total cost…

Q: None

A: Detailed explanation:To solve this problem, we'll use the Leontief input-output model, which is a…

Q: For the cost and price functions below, C(q) 70+18q; p=62-2q Find the number, q, of units that…

A: The cost function is the mathematical representation of the relationship between the cost of…

Q: A manufacturer can produce at most 100 units of a certain product each year. The demand equation for…

A: In economics, profit maximization refers to the process by which a firm determines the price and…

Q: 2. A demand function for step stools manufactured by U-Step is q = -720p +20,500. What evenue if the…

A: Demand curve shows an inverse relationship between price and quantity demanded.Total revenue is…

Q: A firm can produce at most x = 75 units per month, and their marginal cost function has been…

A: We are gong to find the production level which maximizes the output; Break-even quantity to answer…

Q: If the revenue function is equal to R(q) = 0.6q, the cost function is equal to c(q)= q/5 + ln(3q+1)…

A: Answer: Introduction: The cost and revenue function will grow at the same rate at the output level…

Q: The following formula is used in economics to find a company's net income N, where P is the sales…

A: Net income in economics is calculated as :- N=S*(P-V)-F Where, N = Net income , S = Sales Volume,…

Q: Bavarian Crystal Works designs and produces crystal wine decanters for export to international…

A: Given, Demand function: P=1,000−0.0025QP=1,000-0.0025Q Fixed cost = $1,000,000 Variable cost = $200…

Q: For a certain company, the cost function for producing x items is C(x)=40x+150 and the revenue…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: You are the CEO of Widget World Corporation. Researchers have developed a new electronic widget. The…

A: Expense Function is made up of Fixed Cost and Variable Cost Total Revenue = Price * Quantity Fixed…

Q: ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company…

A: The equations are given as follows: MC=q+35MR=560+22q-q2 We…

Q: A manufacturer can produce at most 110 units of a certain product each year. The demand equation for…

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

Q: A manufacturer can produce at most 90 units of a certain product each year . The demand equation for…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Question

100%

A manufacturer can produce at most 90 units of a certain product each year. The demand equation for the product is p = q - 100q+ 1800 and the manufacturer's average-cost function is
12,000
C=
- 55q +
. Determine the profit-maximizing output q and the corresponding maximum profit.
q
The profit-maximizing output q is
(...)

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

E Let the demand function for a product be given by the function D(q) = -1.65g + 270, where q is the quantity of items in demand and D(q) is the price per item, in dollars, that can be charged when q units are sold. Suppose fixed costs of production for this item are $4, 000 and variable costs are $3 per item produced. If 96 items are produced and sold, find the following: A) The total revenue from selling 96 items (to the nearest penny). Answer: $ B) The total costs to produce 96 items (to the nearest penny). Answer: $ C) The total profits to produce 96 items (to the nearest penny. Profits may or may not be negative.). Answer: $ Question Help: C ME PE Video 66°F Mostly cloudy
leave answer in calculator ready form
Here is the production cost function, in $ of producing q units of a product: 2200 C(q) = 300 +0.8q2 + %3D and the demand function of the product is: p(x) = 200 - 0.05q a. Determine the marginal cost, marginal revenue and marginal profit when q=50 and q=150? b. Interpret the results of the calculation in part (a) if it is related to cost, revenue and profit?
Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.
A local shoe has total costs of production given by the equation TC-125+10q+5q². The market demand for shoes is given by the equation QD-50- (1/5) *P. a) Write the equations showing the average total cost and average variable cost and average fixed cost, each as a function of q. b) What is the breakeven price and breakeven quantity for this firm in the short run? c) What is the shutdown price and shutdown quantity for this firm in the short run? d) If the market price of the output is $50, how many units will this firm produce? e) Given a market price of $50. how many firms are in this market?
Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per 100 unit. If demand function is given by p = L Determine the quantity that the company must sell to cover the fixed costs.
A manufacturing company produces ACME Standard Widgets having a fixed cost of $50 and variable cost of $8 per unit. Sales history indicates that the sales price in dollars, P, varies with the demand, D, by the function: P = 200 - 0.1D Determine the following: Optimum demand for the widgets. Maximum profit that can be made. Determine the range of demands for which the company is profitable.
For the cost and price functions below, find a) the number, q, of units that produces maximum profit; b) the price, p, per unit that produces maximum profit; and c) the maximum profit, P. C(q) = 90+12q; p= 64-2q a) The number, q, of units that produces maximum profit is q = b) The price, p, per unit that produces maximum profit is p=$ c) The maximum profit is P = $.
Maximizing Profits The weekly demand for the Pulsar 40-in. high-definition television is given by the following demand equation where p denotes the wholesale unit price in dollars and X denotes the quantity demanded. p=-0.05x+622 (0 ≤ x ≤ 12000) The weekly total cost function associated with manufacturing these sets is given by the following function where C(x) denotes the total cost incurred in producing x sets. C(x)=0.000002x³-0.01x² +400x + 80000 Find the level of production that will yield a maximum profit for the manufacturer. Hint: Use the quadratic formula. (Round your answer to the nearest whole number.) units
If the Marginal Cost for a product is found to be MC= 8x+60 , and the Marginal Revenue is given as MR= 1200 and the cost of 8 units is found to be $1600, what are: the Total Costs? the Fixed Costs? the Total Profit? the production level, x, that yields Maximum Profit? the corresponding Maximum Profit?
The marginal revenue (in thousands of dollars) from the sale of x handheld gaming devices is given by the following function. R'(x) = 4x (x²+25,000) (a) Find the total revenue function if the revenue from 120 devices is $34,166. (b) How many devices must be sold for a revenue of at least $50,000? (a) The total revenue function is R(x), given that the revenue from 120 devices is $34,166. (Round to the nearest integer as needed.) (b) devices must be sold to generate a revenue of at least $50,000 (Type a whole number.)
Let the demand function for a product be given by the function D (q) 1.45 q + 290, where q is the quantity of items in demand and D (q) is the price per item, in dollars, that can be charged when q units are sold. Suppose fixed costs of production for this item are $ 5,000 and variable costs are $ 6 per item produced. If 138 items are produced and sold, find the following: A) The total revenue from selling 138 items (to the nearest penny). Answer: $ B) The total costs to produce 138 items (to the nearest penny). Answer: $ C) The total profits to produce 138 items (to the nearest penny. Profits may or may not be negative.). Answer: $ =