A. When the price=50000-500(Demand) and the variable cost-$3000 per unit, the value ofdemand that maximize the profitB. The installation cost of a machine is $10000 with estimated life of 10 years and selvagevalue of $2000 at the end of the 10th year. What will be the annual depreciation cost in thefourth year (using straight line method)?C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the firstyear. The expenditures are expected to be ($1500) at the end of the first year, $1000 at theend of second year, and to increase by $500 at the end of each of the next 4 years. Thesalvage value at the end of the 8th year is $1500. Draw the cash flow diagram.D. The Present worth (PW) of 5 annual payment of $10000 paid at the end of the each of the 5years with interest rate of % 16 compounded quarterly is.E. The Future worth at the end of the 4 years (FW4) of the four $2000 annual payment paid atthe beginning of each of the 4 years (shown in Figure 1) with interest rate of %10compounded annually is...01234Figure 1$2,000 $2,000 $2,000 $2,000

"Since you have asked multiple questions, we will solve first question for you .. If you want any…

Answered: A. When the price =50000-500(Demand)…

Business

Economics

A. When the price =50000-500(Demand) and the variable cost-$3000 per unit, the value of demand that maximize the profit

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: Paulina sells beef in a competitive market where the price is $7 per kilogram. Her total revenue and…

A: The profit-maximizing quantity refers to the level of output at which a firm can achieve the highest…

Q: A bookstore sells 90 textbooks at a price of $70 a book. The average total cost is $50 per textbook.…

A: Given that : Number of textbooks = 90 Price of a book = $ 70 Average total cost = $ 50

Q: PriceQuantity Total Demanded Revenue Revenue Marginal Total Cost Marginal Cost $24 1000 $24,000 ***…

A: GIVEN Price Quantity Demanded Total Revenue Marginal Revenue Total Cost Marginal Cost $24…

Q: The demand for the book is P = 95-3Q. A bookstore can order copies that will cost $5. If the…

A: The demand function refers to the mathematical relationship between quantity demanded and…

Q: f profit for the shoes firm is $400 and the cost is $800 Calculate total reven

A: Total revenue refers to price multiplied by quantity. Total revenue refers to total receipts from…

Q: The SolarFarm powerplant has both fixed and variable costs. As the plant expands production, it…

A: A monopolist is a seller who has no other competitor in the market. He is the only seller in the…

Q: A company produces a special new type of TV. The company has fixed costs of $469,000, and it costs…

A: Marginal profit is the change in profit from selling and producing an additional unit of output.

Q: Quantity of Gift Boxes TC ($) ATC ($) 55.00 11.00 10 57.50 5.75 15 4.17 20 72.50 25 92.50 3.70 30…

A: TC (at Q=15) = ATC15 * 15 = 4.17*15 = $62.55 ATC(at Q=20)=TC20/Q20 = 72.50/20 = $3.63 MC(at 10th…

Q: Assume there are $50 marginal costs, what is the peak-load price for low and high seasons? a) $75,…

A: Given the demand functions The marginal cost is $50

Q: At the profit-maximizing output total revenue will be OGLD. MC ATC AVC K Demand = MR N F M H A B C…

A: In the perfectly competitive market structure, every firm produces identical goods or services. In…

Q: Q- Its given that the average revenue is $67 and the total quantity sold is 5 calculate the total…

A: # We know that the average revenue is given as the ratio of Total revenue to quantity. AR = TR/Q

Q: How does the shape of the producer's supply function reflect price elasticity ? Does cost analysis…

A: The producer’s supply curve showing the price elasticity in the long and short run can be understood…

Q: You are an owner of a local Toyota dealership. Your dealership earned record profits of 13 million.…

A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…

Q: a. What is its profit?b. What is its marginal cost?c. What is its average variable cost?d. Is the…

A: Given: Average Revenue (AR) = $10Average Total Cost (ATC) = $8Fixed Cost (F) = $200Quantity (Q) =…

Q: Consider the following diagram showing the cost and revenue conditions of a firm. Price (RM) 65 52…

A: Profit-maximizing output level:- Whenever the worth of the final unit manufactured (marginal…

Q: What is the profit maximizing profit?

A: The revenue is the amount of money earned from selling the units of output. The cost is the cost of…

Q: Your friend decides to travel abroad to a popular destination to operate a business. He is faced…

A: Given: Total Fixed Cost: $ 2000 per month Constant Marginal Cost: $ 31

Q: what is its profit if it chooses the profit-maximizing price-and-quantity combination? Group of…

A: A profit-maximizing firm produces at the intersection of the MR and MC curves. The quantity…

Q: Define supply, demand, prices and marketing. and explain the relationship between these concepts.

A: In the goods market, the equilibrium is attained at a point where the downward sloping demand and…

Q: Fixed cost is $100 per day. Suppose that the price at which Katie can sell catered meals is $21 per…

A: FC=100TC=FC+VCAVC=VCQATC=TCQMC=∆TC∆Q By using the above equation and information in the table, the…

Q: 4) What is total cost at the profit-maximizing quantity? 5) What is the profit at the…

A: The monopoly is a market which has a single seller and many buyers in the market. The monopoly would…

Q: PRICE (Dollars per cupcake) 4.00 3.50 1.00 2.50 2.00 1.50 1.00 0.50 0 MC D ATC MR 05 10 15 20 25 30…

A: Under monopolistic competition, there are many sellers. However, the products produced by each…

Q: One more question is, A profit maximizing firm faces market price of p2. What are their profits?

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Use the graph to answer the questions. (a) Find the point (A, B, C, D, or E) that corresponds to…

A: A monopoly is a market structure where a single firm dominates the market and sells a unique…

Q: How does the goal of the firm influence the sales maximization and profit maximization decision.

A: # Firm has priorities based on whether to maximize profits or maximise it's sales.

Q: he company can produce the CD with no fixed cost and a variable cost of $5 per CD.a. Find total…

A: Total Revenue:Total Revenue is the total amount of money earned by selling a certain quantity of a…

Q: price =10 birr and tc=120+4Q2...then find profit maximizing level of price and quantity

A: Profit is the total income earned after the deduction of total expenses from total revenue.

Q: There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of…

A: a. There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size…

Q: Quantity Total Price Demanded Revenue Revenue Marginal Total Marginal Cost Cost $24 1000 $24,000…

A: According to the guidelines answer is provided to the first three subparts: a) "Total revenue is…

Q: Total Revenue Ст Maximum Profit Los Profit Cv Cr D'2 D Volume (Demand) Cost and Revenue

Q: Which of the following is necessary for a firm to practice price discrimination? (A) The government…

A: Price discrimination is a competitive pricing strategy utilized by businesses and sellers. Price…

Q: Table 15-4 Price per Dose $80 77645648 40 32 72 Quantity Demanded (dose) 0 24 1 2 3 4 5 6 7 16 8…

A: Profit refers to an excess income that a company earns, over the revenue from the sale of its…

Q: Price Mayert cost Marginl Cost 75 Averaye Totuw Cost 70 Averaye Uarindle cost 52 40 35 Demand 100…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Revenue and cost (dollars per unit) 50 40 30 20 10 0 10 20 MC ATC AVC 30 40 50 Output (units per…

A: In perfect competition, There exists a large number of buyers and sellers. The firm maximize it's…

Q: Define the excess capacity and calculate it from a graph. Define a mark-up and calculate it from a…

A: Solution: Capacity Excess: It refers to the difference between optimum output and the output…

Q: What would happen to the following if there is anincrease in marginal cost? (a) The price that the…

A: marginal cost is a important factor that decides the level of production for a firm. usually firm…

Question

A. When the price
=50000-500(Demand) and the variable cost-$3000 per unit, the value of
demand that maximize the profit
B. The installation cost of a machine is $10000 with estimated life of 10 years and selvage
value of $2000 at the end of the 10th year. What will be the annual depreciation cost in the
fourth year (using straight line method)?
C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first
year. The expenditures are expected to be ($1500) at the end of the first year, $1000 at the
end of second year, and to increase by $500 at the end of each of the next 4 years. The
salvage value at the end of the 8th year is $1500. Draw the cash flow diagram.
D. The Present worth (PW) of 5 annual payment of $10000 paid at the end of the each of the 5
years with interest rate of % 16 compounded quarterly is.
E. The Future worth at the end of the 4 years (FW4) of the four $2000 annual payment paid at
the beginning of each of the 4 years (shown in Figure 1) with interest rate of %10
compounded annually is...
0
1
2
3
4
Figure 1
$2,000 $2,000 $2,000 $2,000

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

(A) The Marginal cost of a firm is $230 and the marginal revenue is $255 What would be the value of Marginal profit (B) is the firm maximizing its profit?
The total revenue of a fimm decreased after an increase of the price of the goods it sells. Explain why this can happen. Include a graph in your explanation. Indicate price effect and output effect in your graph.
The next 6 questions relate to the following table. Calculate total revenue at a quantity of 5 units. (The table gives you Quantity, Price, and Total Costs, leaving the Total Revenue and Profit for you to calculate.) Quantity Price Total Revenue Total Cost Profit 0 70 0 1 70 60 2 70 120 3 70 180 4 70 300 5 70 410 Calculate profit at an output of 4 units. What is the highest profit possible? What is the profit maximizing level of output What is the profit maximizing price? Can you tell if this is the short run or long run? Explain.
Price L M N 0 K MC ATC MR F G Output The profit-maximizing firm will be earning total revenue of OFIN OFJM OFKL OGHM
Will the long-run customer relationship and sales gains from the promotion justify its costs?
Use the above figure. Total revenue at the profit-maximizing output is
A seller can sell 3 diamond rings at a price of $12000 each. If he sells 4, his MR will be $10500. what is total revenue?
Answer the question based on the following graph. Costs and revenue per case 22 6432 16 $16 $12 $13 14 13 12 $14 22 24 30 38 MC MR ATC Demand What is the profit maximizing price for this firm? Quantity (cases)
What are the factors that will affect the total revenue?justify your answer
What is the profit maximizing level of output and how much daily profit will the producer below earn if the price of pizza is $0.50 per slice? See the attachment for graph.
The profit-maximizing price is ______
Price ($) 1000 500 300 0 300 500 Supply Demand What is the total cost of producing 300 iPads? 1000 Quantity