The total revenue function for a product isgiven byR=655xdollars, and the total cost function for thissame product is given byC=19,250+70x+x2,where C is measured in dollars. For bothfunctions, the input x is the number of unitsproduced and sold.a. Form the profit function for this productfrom the two given functions.b. What is the profit when25units are produced and sold?c. What is the profit when43units are produced and sold?

A profit function is a mathematical relationship between a firm's total profit and output. It equals…

Answered: C=19,250+70x+x2, where C is measured in…

C=19,250+70x+x2, where C is measured in dollars. For both unctions, the input x is the number of unit produced and sold. a. Form the profit function for this product

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: Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is…

A: Marginal cost measures the change in total cost due to a change in quantity produced. Marginal cost…

Q: Consider production function f(L, K) = 10VLK and input prices w :10,r = 90.

Q: d) Use your graph of P to estimate the number of panels that give maximum profit. e) How would your…

A: Profit is the excess income earned by the producer which is left after paying off all the expenses…

Q: Suppose a firm uses capital K and labor L to produce output Q with the following production…

A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…

Q: A firm manufacture robots, for which $10000 machinary is used. The additional per unit cost is $100.…

A: Fixed cost of production = $10000 Variable costs of production = $100 Number of units produced = 5

Q: Calculate explicit cost given:- Accounting profit = $6600 Total revenue= $10,000

A: The data presented in the question above is:- Accounting profit = $6600 Total revenue= $10,000 Using…

Q: Table: Production Function for Soybeans Quantity of labor (workers) 0 1 2 3 4 5 Quantity of soy…

A: Step 1: Given data :The cost of fixed inputs (land and tractor) is $150 per day.So, the value of…

Q: A factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both…

A: Costs are the expenses that a firm incurs in the form of purchase of inputs to produce goods and…

Q: The difference between ATC and AVC decreases with decrease in level of output.

A: Average total cost (ATC) is the ratio of the total cost (TC) and the quantity (Q). ATC=TCQ Average…

Q: TC = 217 + 55Q + 4Q2 What is the average variable cost when 10 units are produced? Enter as a valu

Q: are rela Find the monthly

A: Given the cost and revenue relationship is: C=R2450000+12000 .....................(1) We have to…

Q: If a firm has total revenue of $30,000 for January and the cost for the month are $26000 Calculate…

A: The information being given is:- Total revenue for January = $30,000 Total cost for January =…

Q: As a producer and seller of some commodity, you have learned that, if you produce and sell x itmes…

A: Profit is the difference between total revenue and total cost.

Q: The marginal revenue (in thousands of dollars) from the sale of x handheld gaming devices is given…

A: The Average Revenue is characterized as the revenue that an organization can profit from by selling…

Q: TC = 177 +30Q + 2Q² What is the average variable cost when 9 units are produced? Enter as a value.

A: TC = 177 + 30Q + 2Q2 Since Total cost = Total variable cost + Total fixed cost Total Fixed cost is…

Q: The average cost per item to produce q items is given by a(q) = 0.3q2 -0.7 q + 11 for…

Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

The total revenue function for a product is
given by
R=655x
dollars, and the total cost function for this
same product is given by
C=19,250+70x+x2,
where C is measured in dollars. For both
functions, the input x is the number of units
produced and sold.
a. Form the profit function for this product
from the two given functions.
b. What is the profit when
25
units are produced and sold?
c. What is the profit when
43
units are produced and sold?

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

Please see attached image for question. Please note that there is an overline above the "K" in the oven/captial equation (K = 1). It does not show clearly in the image.
Assume that the linear cost and revenue models apply. An item costs $6 to make. If fixed costs are $2400 and profits are $2100 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.) R(x) =
To produce the next popular toy, a company has to pay a factory $250, 000 to set up the production line. They also have to pay $25 per item for the raw materials and labor. Write function for the average cost to produce x items. Then describe what happens to the average cost as the factory produces a large number of toys.
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? units
2) The cost price of a Saturn is $13 000. When the dealer sells each car for $25 000, he sells 21 cars per month. For each reduction of $1000 in the selling price, the dealer sells 3 more cars each month. a) Determine the Profit equation for this function. b) Explain how the profit function was determined. Explain each variable. c) Determine the selling price of a car for maximum monthly profit.
CEO of Ganymede company produces goods with 500 customers where the number of customers is equal to Q produced, with the cost function TC = 2Q2 + 400Q + 1,300,000. Questions a. Determine fixed costs, variable costs and average costs that the customer musr pay. Describe the calculations! b.If the item sells for 5,000 and 7,000, determine the position of the company and can the company grow?
Calculate output if total revenue is $6600 and the price per UNIT is $11
Consider the following total cost function: where represents output and are constants. What can we conclude? (a) The firm experiences rising average fixed costs, but falling average variable costs. (b) The firm experiences falling average fixed costs, but rising average variable costs. (c) The firm experiences falling average fixed costs and falling average variable costs. (d) The firm experiences rising average fixed costs and rising average variable costs
It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold for $4.90 each.(iii) Write an algebraic expression representing the cost C as a function of the number of cupcakes x that are produced.
Total revenue is $3500 and the output is given as 200 units. Calculate the average revenue for the firm