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In reference to the attached chart, I was supposed to calculate the bundle prices and net profits. I got assistance, and here is the feedback:
The Satisfying Smoothie's net profit is 10.00 - 5.00 = 5.00.
The Hydration Power Drink's net profit is 7.00 - 3.00 = 3.00.
How is the net profit for Hydration Power Drink 3.00, when 7-3= 4? And Why would it be 7-3, and not 7-6?
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- Calculate Iyana's marginal revenue and marginal cost for the first seven rompers they produce, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per romper) 40 35 30 25 20 15 10 0 0 1 2 3 4 5 6 7 8 QUANTITY (Rompers) Marginal Revenue Marginal Cost ? Iyana's profit is maximized when they produce a total of is $ , an amount rompers. At this quantity, the marginal cost of the final romper they produce than the price received for each romper they sell. At this point, the marginal cost of producing one more romper (the first romper beyond the profit maximizing quantity) is $ , an amount than the price received for each romper they sell. Therefore, Iyana's profit-maximizing quantity occurs at the point of intersection between the Because Iyana is a price taker, the previous condition is equivalent to curves.Nathan runs a rare book store. Last year, he earned $35,000 in revenue and had explicit costs of $8,000. Nathan could have made $35,000 driving a boat in a water ski show and received an additional $5,000 if he had used the company's inputs in a different way. Calculate Nathan's economic profit. $Using the graph below, calculate the firm's profits at the profit maximizing output Price 408 384 360 336 312 288 264 240 216 192 168 144 120 96 72 48 24 0 0 56 112 168 224 280 336 392 448 504 560 616 672 728 784 840 896 Quantity -PMRMC-AC
- Suppose Lucia runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a price-taker market, and the market price is $20 per teddy bear. The following graph shows Lucia's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven teddy bears that Lucia produces, including zero teddy bears. (?) 175 150 Total Cost Total Revenue 125 100 Profit 75 -25 -50 4 7 8 QUANTITY (Teddy bears) TOTAL COST AND REVENUE (Dollars)Entry, Exit, and Long Run Profitability - Work It Out Suppose the accompanying graph shows the market for lattes at the local café in your hometown. a. You notice that the local café charges $4 for a latte. Move the points on the graph to label the profit margin per unit at a price of $4 a latte. Price ($ per latte) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 0 profit margin 275 550 Average cost Demand 825 1,100 1,375 1,650 1,925 2,200 Quantity of lattes b. At a price of $4 per latte, the profit margin per unit is $11. Profit maximization using total cost and total revenue curves Suppose Hubert runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Hubert's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Hubert produces. 200 175 Total Revenue 150 125 Total Cost Profit 100 75 50 25 -25 3 QUANTITY (Teddy bears) 1 2 5 7 8 TOTAL COST AND REVENUE (Dollars)
- 3. Profit maximization using total cost and total revenue curves Suppose Bob runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $25 per teddy bear. The following graph shows Bob's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Bob produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 50 25 0 -25 O ☐ ☐ 0 1 2 3 4 5 QUANTITY (Teddy bears) ☐ 6 Total Cost 7 8 O Total Revenue Profit ?coit ad Fifai oriens diss ܠܫܐ -D. Prufe maximirudcn uni hharat-ade mariet prioris ܗ ܕ Sapietne Sarei nuts a imal haats that manum: a Are a e $$ gar Hat The following graph shows Dames total cost curve Use the blue points (circle symbel) to plot total revenue and the green points (triangle symbol) to plat profft for shirts quanties zero through sever (inclusive) that Darnell produces A< ¥UAnd 10 Tripl ܡܢܐ ܕ ܚ ܠܚܝܬ Total Co ܀ ܀Suppose Musashi runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $25 per shirt. The following graph shows Musashi's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Musashi produces. 200 175 Total Revenue 150 Total Cost 125 Profit 100 75 50 25 -25 1 2 3 7 QUANTITY (Shirts) TOTAL COST AND REVENUE (Dollars) co
- Problem Set #2 (Note: On this problem, use EXCEL to generate numbers. Please replace the below table with your answers ON THIS SHEET. Similarly, in the rest of the assignment use EXCEL and insert figures and tables from EXCEL onto this sheet. 1. Consider the total profit function π = TR (31-Q)Q = TC (20+Q+2Q²) Create a table that shows Total Revenue, Total Cost and Total Profit, (in your table, let quantity run from 0 to 10 in increments of 1.) Indicate in where total profits are maximized your tableHayfever Farms is an 80-acre hay farm in Colorado. The owners are considering changing the farm's name to Blissful Acres and growing strawberries instead of hay. Use the table of marginal cost (MC) and marginal revenue (MR) to answer two questions. Number of acres MC $ MR $ (hay) MR $ (strawberries) 10 320 730 5600 20 200 730 5600 30 540 730 5600 40 730 730 5600 50 1200 730 5600 60 3200 730 5600 70 5600 730 5600 80 6700 730 5600 If they continue to only grow hay, how many acres should Hayfever Farms devote to growing hay in order to maximize profits? acres of hay: acres If the owners decide to only grow strawberries, how many acres should Blissful Acres devote to growing strawberries in order to maximize profits? acres of strawberries:11:30 l 4G I Homework 4 (section 2.1-2 & 2.2).pdf Economic Mathematics (1) Name ID Section 2.2 Revenue, cost and profit 1. If the demand function of a good is given by P-80 – 3Q, the fixed costs are 100 and variable cost are 5 per unit. Work out the profit when Q-10. 2. Find an expression for the profit function given the demand function 20+P= 25 and the 32 +5. Find the value of 0 for which the firm average cost function AC = (a) breaks even (b) makes a loss of 432 units (c) maximises profit. 2/2 !!