A particular item in the Picasso Paints product line costs $7 each to manufacture. The fixed costs are $28,000. The demand function is q = -500p + 30,000 where q is the quantity the public will buy at a given price, p. 1) Write the expense function in terms of p. 2) How much profit would the firm make if the price was $12? 3) What is the revenue equation?
A particular item in the Picasso Paints product line costs $7 each to manufacture. The fixed costs are $28,000. The demand function is q = -500p + 30,000 where q is the quantity the public will buy at a given price, p. 1) Write the expense function in terms of p. 2) How much profit would the firm make if the price was $12? 3) What is the revenue equation?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A particular item in the Picasso Paints product line costs $7 each to
manufacture. The fixed costs are $28,000. The demand function is
q = -500p + 30,000 where q is the quantity the public will buy at a given price, p.
1) Write the expense function in terms of p.
2) How much profit would the firm make if the price was $12?
3) What is the revenue equation?
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!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
The answer displated chopped and cut, but i think i gathered it.
Follow up questions
Determine the revenue at a price of $25
Which price will yield a higher revenue? $28 or $40?
Solution
by Bartleby ExpertKnowledge 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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education