<MTN 3G12:01You30/12/2023, 00:17iv.Question 10a) A firm has been contracted to produce a total of 1900 units of two goods Q₁ and Q₂.The joint total cost equation for the production of the goods is given as:C(Q₁ Q₂) = 100Q₁ + Q1Q2 + 100Q2. The corresponding demand equations are:P₁ = 500-Q₁+1.5Q2 and P₂ = 300+ 1.5Q1-Q₂@ 30%Where: P, is the price of good 1 and P₂ is the price of good 2.1.Write an expression for the firm's profit.ii.Determine the profit-maximising output levels subject to the contractproduction quota.iii. How much profit will the firm make by producing to meet the contractedNAll Mediaoutput?Estimate the new maximum profit if the production quota increases by 1 unit.--D

The purpose of this question is to Monopolistic market refers to few sellers and large number of…

Answered: < MTN 3G 12:01 You 30/12/2023, 00:17…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Attempt all questions. Q1. a) A local Pepsi company has total costs of production given by the equation TC-500+10q+Sq2. This implies that the firm's marginal cost is given by the equation MC 10+10q. The market demand for cold drink is given by the equation QD-105 (1/2)*P. Write the equations showing the company's average total cost and average variable cost and average fixed cost, each as a function of q. Show the firm's MC, ATC and AVC on one graph. What is the breakeven price and breakeven quantity for this firm in the short run? What is the shutdown price and shutdown quantity for this firm in the short run? If the market price of the output is $50, how many units will this firm produce? iv) Assuming the cold drink industry is perfectly competitive, what output would be produced by the firm in long-run equilibrium? What would be the long-run equilibrium price? i) ii)
Suppose that the marginal revenue for a product is MR=775 and the marginal cost is MC39sqrt(x+1), with a fixed cost of$906.00 Find the profit or loss from the production and sale of 3 units.
Given the following functions for shoe factory in Ohio: fi: Qa=2(90-P) 1 P==Qs 4 Where Q is quantity and P is price. fz given is the Marginal Cost for the shoe factory but this producer often dumps left over materials such as glues and dyes directly into the sewer effecting ground water in the nearby town. An expert in the field discovered that the marginal damage is a constant $9. 1. What is the social marginal cost (show all working)? 2. What is the new equilibrium when pollution damage is taken into consideration for this market? 3. What is the total surplus when accounting for the damages? (Evaluate at the SMC level) - Draw the diagram and label. 4. What is the Deadweight loss for the pollution in the event that the producers do not pay for the damages? (Identify the DWL on your diagram) 5. What is the Total Social Surplus taking damages into account?
q 075150225 300 375 450 C(q)21 29 26 25 30 25 27 The table shows the marginal cost of producing q units of goods. a) If the fixed cost is $9600, use the average of left- and right- hand sums to determine the total cost of producing 225 units. Answer: $ b) How much would the total cost increase if production were increased one unit, to 226 units? Answer: $
The total profit equation for the firm is p =-500-25x-10x^2 -4xy-5y^2+15y ;x +y =100 .where x and y represents output levels.Us8ng substitution method determine the profit maximizing output levels for x and y .
The Nike accounting firm analyzes the price-demand relationship toconclude that x thousand shoes will sell if offered for a unit price (in dollars) of p(x) = 130−0.1x. Suppose further that the total cost of production was tracked to be $530,000 up until production of the first thousand shoes, and that this cost increased linearly to $560,000 by the time of production ofthe 2000th shoe. Find the following quantities, and interpret your results(describe what these quantities represent). a) Marginal revenue when x= 100 b) Average profit when x= 500
The Lead Zeppelin Company produces powered and steerable lighter-than-air craft. The company’s airships are specially lined and are therefore safer than normal dirigibles. The table below shows the weekly production of dirigibles, along with the associated Average Cost and Total Revenue figures (the Average Cost and Total Revenue figures are actually in thousands of dollars, so the $15 represents $15,000, but we have left off the zeros to save space). Quantity Average Cost Total Cost Total Revenue 0 -- 0 $0 1 $15 15 $10 2 $9 18 $20 3 $8 24 $30 4 $8.50 34 $40 5 $9 45 $50 6 $10 60 $60 7 $12 84 $70 The Lead Zeppelin Company has decided that it will produce at least 1 dirigible. Now the question becomes, how many more dirigibles should it produce to make as much profit as possible? Use the profit-maximizing rule to explain how many dirigibles the Lead Zeppelin Company should produce to…
Price (Dollars per Bushel) 950 900 850 D 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 0 3 6 9 12 15 S 18 21 24 27 Bushels of Corn (Billions) The graph above shows hypothetical demand and supply functions for corn in the U.S. Oil prices increase due to some political problems in middle east. This causes the marginal cost of producing each bushel of corn to increase by $150.00. This is because, oil is used to produce gasoline that farmers use to operate tractors, groundwater water pumps, and other farming equipment. Higher gasoline prices also affect the costs of transporting corn to consumer centers. This number may, of course, be unrealistic. But it will make the graph less messy and calculations less cumbersome. Calculate the following:
Answer each of the following as true or false and briefly explain your answer. 9 39 8 1a) If ec> 1, increasing returns to scale and decreasing average costs are indicated 1b) 7 17 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Average cost exceeds marginal cost at the minimum efficient scale of plant. 0 0 1c) DA When total fixed cost and price are held constant, a reduction in average variable cost will typically cause a reduction in the breakeven activity level. 10X00X0 0,0 0,0 0 When long-run average cost is decreasing, it can pay to operate smaller plants at their peak efficiency rather than larger plants with some excess capacity.
Am. 111.
c) Instead of introducing the 20% corporate tax in part (b), the government decided to add an ad valorem input tax of 100% to input 2. What is the profit-maximizing amount of each input to use? What is the profit-maximizing output? How much is Rodrigo’s new profit?

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