demand curve, marginal revenue curve and total cost curve for a product are as shown respectively Qd = 400 -2P MR = 200 -Q TC = 10Q . What is the profit-maximising level of output? [1] 0 [2] 10 [3] 190 [4] 200 [5] 400

demand curve, marginal revenue curve and total cost curve for a product are as shown respectively Qd = 400 -2P MR = 200 -Q TC = 10Q . What is the profit-maximising level of output? [1] 0 [2] 10 [3] 190 [4] 200 [5] 400

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: How do you calculate the revenue of a firm that produces only one good?

A: ANS TR is the value of the total number of goods sold by a firm in monetary terms. It is the product…

Q: [Select all that apply] Let the cost of producing a books be 100+ x and a price - demand equation be…

A: The price of the elasticity to demand refers to the percentage change in the quantity demanded of a…

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: The industry for cobalt mining is perfectly competitive. A typical mine has a capacity constraint of…

A: The supply curve depicts the units of the commodity that producers are ready and willing to supply…

Q: Dollars 0 17. Refer to the above diagram. At the profit-maximizing output, total revenue will be: A)…

A: The marginal revenue (MR) curve in a perfectly competitive firm is shown as a horizontal straight…

Q: If Jim’s Home Goods price elasticity of demand is −2, and its profit maximizing price is $6, then…

A: Price elasticity of demand: It is the responsiveness of the percentage change in the quantity…

Q: Suppose total revenue and total costs are given by TR = 1000-8Q^2 and TC= 10Q^2. MR=100-16Q and MC =…

A: With the process of profit maximisation, a company or business aims to maximise profits by adjusting…

Q: To find the firm’s profits from the sales figures, assume that the price is $30, that the marginal…

A: Apple / Google Advertise Don't Advertise 700, 700 900, 600 Don't 600, 900 800, 800

Q: what would be its profit-maximizing price? Would that be the efficient level of output? Why or why…

A: Profit maximization is done by subtracting total costs from total revenues and getting the first…

Q: When the price is between AVC and ATC (ATCAVC), then total revenue for the competitve firm

A: TR = P x Q TVC = AVC x Q TC = ATC x Q

Q: 6. The total cost incurred by a company that produce three kinds of goods is reflected by the…

A: (a) Total Production of each firm: Total Cost(TC)=0.5Xa^2+Xb^2+0.75Xc^2-2XaXb+3XbXc+XaXc+9187.5…

Q: 3. The equation of the monthly demand for cabin bags is given by: 45-p= 0'5q and the monthly average…

A: The total money a seller earns by selling a certain amount of quantity is the total revenue earned.…

Q: Price, P (€); cost 3.70 2.50 2 0 20 O 40 60 80 140 120 100 Quantity of loaves, Q 160 180 Marginal…

A: A collection of curves in the QP-plane known as the isoprofit curves correspond to different levels…

Q: Copy and paste, or type, the following into cells A1:D5 of an Excel spreadsheet: Input data fixed…

A: The fixed cost is the cost which do not change with the change in the output level, that is, fixed…

Q: 6.18. Ali burgers. There are two types of consumers of Ali burg- ers: type a consumers have demand…

A: Individual demand represents to the quantity of a good or service that a single consumer is willing…

Q: Problem 1 (a) Teddy is a manufacturer of dish washing liquid. If his monthly demand function for…

A: Teddy's profit(π) function is: Profit=Total Revenue-Total cost=16q-q2250-500-0.2q=15.8q-500-q2250

Q: Table 1 includes Price, Quantity, Average Total Cost, Average Revenue, Marginal Cost, and Marginal…

A: Revenue and cost assessments are important in economics because they give useful insight into the…

Q: Calculate economic profit given:- Total revenue = $5000 Explicit cost = $1000 Implicit cost =…

A: The data presented in the question above is:- Total revenue = $5000 Explicit cost = $1000 Implicit…

Q: Price and cost (dollars)

A: When there is only one seller and many buyers of a product or service, the market structure is a…

Q: Calculate the average total, fixed, and marginal costs for a “competitive” firm with the following…

A: Since you have posted a question with multiple sub-parts, we will solve the subparts asked by you.…

Q: Help

A: To analyze the given exhibit and solve the problem, we need to interpret the graphical information…

Q: The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive…

A: We know that, in the short run, for a perfectly competitive firm, the profit-maximizing output (Q)…

Q: D) TC = 8Q² + 9Q + 16 MC = 16Q + 9 MR 329 a) Profit maximizing quantity ? b) Total cost at profit…

Q: Price and cost (dollars) 16 14 12 10 2 0 50 MR Output 100 SMC ATC AVC 150 D

A: Price setter is a firm that can decide its own prices like a monopoly which has a power to make…

Q: show me step by step how to solve this problem: mango Systems believes that demand for its pet e-…

A: Total contribution margin refers to the aggregate amount of revenue remaining after deducting…

Q: please explain how the answer is 1.5 and 7, i thought profit was maximized was when MR=MC or if its…

A: A key idea in microeconomics is the premise that profit is maximized when Marginal Revenue (MR)…

Q: Figure 2 Revenue, Costs 40 38, 30 26 60 100 130 MC ATC AVC Q MR=50

A: Perfect competition has the following features: There are many buyers and sellers. The products…

Q: The figure to the left shows the isoprofit curves and demand curve for Cheerios breakfast cereal.…

A: a) A rival company producing a similar brand slashes its prices.b) The cost of producing Apple…

Q: $ 222 25- 22 21 10 0 Profit-maximizing quantity: Profit-maximizing price: Average revenue: Average…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: A company sells one of its products for $42 each. The monthly fixed costs are $2700. The marginal…

A: Given information: A company sells its product for $42 each => P = $42 -------------------------…

Q: A competitive firm uses two inputs, x and y. Total output is the square root of x times the square…

A: Cost is minimized at the input combination where marginal rate of technical substitution is equal to…

Q: The demand function is x = ÷(25 – 2p) where, x is the number of units and p is the price Let the…

A: 1. Demand function is, x = 13×(25-2p) Therefore, Revenue = Price x Quantity = p×x = p×13(25-2p)…

Q: (d) Calculate the profit or loss of each firm at the short-run market equilibrium. If they are…

A: Perfect competition is a market structure in which a large number of small firms produce identical…

Q: The marginal revenue (MR) the individual producer receives when it maximizes its profit is $…

A: Marginal cost is the additional cost of producing one more unit of a good. Marginal revenue is the…

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: On the graph input tool, change the number found in the Quantity Demanded field to determine the…

A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…

Q: When the local electricity company charges a price of $20 per kilowatt they sell 1,000 units. If…

A: Marginal revenue refers to the change in the total revenue due to a change in the output. It is…

Q: Paulina sells beef in a competitive market where the price is $8 per pound. Her total revenue and…

A: A perfectly competitive firm produces its output where Price is equal to Marginal Cost. => P = MC…

Q: ie demand function for a company is p = 200 - 31 and the cost function is given by C(z) U+ 80z - z.…

Q: $ per unit $40 $20 2 4 6 8 10 MC 12 ATC MR AVC Output (q) The graph above shows a firm's Marginal…

A: In perfect competition, There exists a large no. of buyers and sellers. The firm will maximize…

Question

demand curve, marginal revenue curve and total cost curve for a product are as shown respectively Qd = 400 -2P MR = 200 -Q TC = 10Q . What is the profit-maximising level of output?

[1] 0

[2] 10

[3] 190

[4] 200

[5] 400

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 with 2 images

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

$30 M ATO 20 AVC 15 75 80 100 Output 1-At which point the firm gets abnormal profit? 2- based on your answer in question one, what is the amount of total revenue? 3- based on your answer in question one, what is the amount of abonormal profit? 4-Find the value of Average Fixed cost at Q= 100 5- Determine the shutdown point? For the toolbar, press ALT+F10 (P) or ALT+FN+F10 (Mac).
Question 7 A firm, focusing on producing toothpaste has a demand function 2? = 10 − 0.25?. If fixed cost per unit is -(+ and variable cost per unit function is 2? − 20 + -)), where Q is number of toothpastes produced and P is the price per toothpaste: a) Determine the number of toothpastes that maximizes the company’s profit. b) How much should the firm charge for one toothpaste? c) Find the total profit at the profit maximizing level of output. d) Using the own price elasticity of demand, comment on the firm's pricing policy options.
①The total cost for producing x items is given by 12x + 3735. Each item is sold for $21. Find the formula for the total items must be sold to break even? revenue. How Many ②Solve the equation x² - 10x = -2x-15 3 A department store will buy 8 items if the price is $40 per item, and 14 items if the price is $28 per item. The Supplier is willing to sell 5 items if the price is $70 per item and 12 items if the price is $140 per item. If the supply and demand functions are linear, find the equilibrium point. invest $10,000 in an account that pays 10% compounded you continuously, how much money will you have in 15 years? (4) If ⑤ het f(x) = 300 √x + 2. Find the average rate of change when x increases from 25 to 100. Calculate derivatives of the following functions. a) 2 2x-3 4x+5 b) (2x5 +1) 9 ⑦Calculate derivatives of the following functions 8 の 2 6x в) че 6) 1) In (3x² + 5x) Calculate the following integral S (8x7 - 12x 5 + 3x² + 4) dx
2. For the following total revenue and total cost functions of a firm: TR = 800Q – 10Q2 TC = (2/3)Q3 -30Q2 + 672Q +4000 (a) Determine the level of output at which the firm maximizes total profit (b) Calculate the profit (need step by step, please)
8. A commodity has price demand function p(x)= 11800 - .01x and each unit costs 1000 and the overhead is 5000. a) what is the revenue function, cost function and profit function ? b) what price should be charged to maximize profits? c) what is the marginal profit for x=400 ? Explain what this marginal profit number means.
lawn-mowing services. Table Q2(a) sets out Lisa's costs and revenue at the market price of RM30 a lawn: Quantity (lawn per hour) Table Q2(a): Costs and Revenues of Lisa’s Lawn Company Marginal Revenue Total Total Cost (RM) Marginal Cost Revenue (RM) (RM) (RM) 30 1 30 30 40 10 60 90 30 30 55 15 3 75 20 4 120 30 100 25 5 150 30 130 30 6. 180 30 165 35 (i) Identify the quantity of lawn per hour that maximised the profit earned by the firm. (ii) Calculate the amount of Lisa's maximum profit in the short run. (iii) In the long run a firm in perfect competition makes normal profit which is equal to zero. Explain graphically how free entry and exit brings the economic profit back to normal profit.
Please no written by hand and no emage
The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q + 20 +400/q, where q is the firm's output. i. Is the rate of change of profit increasing or decreasing when theouput level of the firm is 10 units?ii. Determine the level of output for which the firm's profit is maximized.iii. What is the firm's maximum profit?
1. Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml size is: q = 4000 − 250p and his total cost function is: C(q) = 500 + 0.2q (i) Derive an expression, R(q) for Teddy J′s total revenue curve.(ii) Derive an expression, Π(q) for Teddy J's profit function.(iii) Determine whether Teddy J′s profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.
Solve part iii - What is the marginal revenue for the 8th lesson? $__
sub= 24 help
4. A marginal revenue function MR(x) (in dollars) is given below. Use numerical integration on a graphing calculator or computer to find the total revenue over the given range. MR(x) 190 1+2e-0.5x -30, 0≤x≤260 The total revenue over the given range is approximately $ (Round to the nearest cent as needed.)