Answer the last two parts which is •Calculate the break even and profit maximizing levels of output and Price • what is the relationship between price, marginal revenue and own Price elasticity of demand at the profit maximizing point A firm has the following information on productionQ.6and costs from past data:Output(Y) 012186Total Cost (TC)277553618199If the totalcost function is knownto beTC = aY'+bY² + kY + ƒ , and the demand for theproduct of the firm is Y = 320- (1/2). P answer thefollowing:• Determine the coefficients of the cubic cost function.Derive all cost and revenue curves and the profitfunction.Show that the MC cuts the AVC when AVC is at itsminimum point. Plot the relevant graph indicating allpoints.• Calculate the break even and profit maximizing levels ofoutput and price.What is the relationship between price, marginal revenueand own price elasticity of demand at the profitmaximization point.

A breakeven point is a point where the firm only covers its total cost from the revenue and the firm…

Answer the last two parts which is •Calculate the break even and profit maximizing levels of output and Price • what is the relationship between price, marginal revenue and own Price elasticity of demand at the profit maximizing point

Answer the last two parts which is •Calculate the break even and profit maximizing levels of output and Price • what is the relationship between price, marginal revenue and own Price elasticity of demand at the profit maximizing point

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Answer the last two parts which is

•Calculate the break even and profit maximizing levels of output and Price

• what is the relationship between price, marginal revenue and own Price elasticity of demand at the profit maximizing point

A firm has the following information on production
Q.6
and costs from past data:
Output
(Y) 0
12
18
6
Total Cost (TC)
2775
5361
8199
If the total
cost function is known
to be
TC = aY'+bY² + kY + ƒ , and the demand for the
product of the firm is Y = 320- (1/2). P answer the
following:
• Determine the coefficients of the cubic cost function.
Derive all cost and revenue curves and the profit
function.
Show that the MC cuts the AVC when AVC is at its
minimum point. Plot the relevant graph indicating all
points.
• Calculate the break even and profit maximizing levels of
output and price.
What is the relationship between price, marginal revenue
and own price elasticity of demand at the profit
maximization point.

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