Given the profit function for firm 2; π(Y2; 1) = (80 - 2y1-3y2)y2-10y2-y, firm's 2's profit-maximizing output level solves ச ○ a. 291 8y2 +70 მი Эп O b. 891-4y2 +40 Dy2 aT ○ C. 2y1 8y2 +40 By aπ O d. 2y1-6y2+70 მყი

(b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p = 40−4q2where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (i) Write an equation giving profit as a function of the number of lightweight compasses produced. (ii) At the moment the company produces 2 million lightweight compasses and makes a profit of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit?

you are an accountant for a manufacterer of radios. the demand function for the tablets is p= 40-4x2 where x is the number of tablets produced in millions. it costs the company $15 to make a tablet. write an equation for the manufactures profit as a function of the number of tablets produced. the company currently produces 1 million tablets and makes a profit of $21000000, but you would like to scale up production a bit, what greater number of tablets could the company produce to yield the same profit

A major software developer has estimated the demand for its new personal finance software package to be Q=1,000,000P-2 while the total cost of the package is C = 10,000+ 25Q. If this firm wishes to maximize profit, what percentage markup should it place on this product where percentage markup is defined as 100*(sale price - marginal cost)/marginal cost? 4. a. b. C. d. e. ANS: 90% 100% 20% 40% 250%

15.9 (0) The demand function for football tickets for a typical game at a large midwestern university is D(p) = 200, 000 – 10, 000p. The university has a clever and avaricious athletic director who sets his ticket prices so as to maximize revenue. The university's football stadium holds 100,000 spectators. (a) Write down the inverse demand function.. (b) Write expressions for total revenue and mar- ginal revenue as a function of the number of tickets sold. (c) On the graph below, use blue ink to draw the inverse demand function and use red ink to draw the marginal revenue function. On your graph, also draw a vertical blue line representing the capacity of the stadium. Price 30 25 20 15 10 20 40 60 80 100 120 140 160 Quantity x 1,000 (d) What price will generate the maximum revenue? What quantity will be sold at this price?. (e) At this quantity, what is marginal revenue?. At this quantity, what is the price elasticity of demand?. Will the stadium be full?

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Assume the firm can sell its product for $14 each. TR AVC TC АТС MC $2000 100 $1400 $600 $2600 $26.00 $6.00 200 $2800 $5.00 $3000 $15.00 300 $1920 $6.40 $3920 $9.20 400 $5600 3280 $8.20 $13.20 $13.60 Suppose the manager decided to sell at an output that maximized average profit. At a market price of $14, how many would he sell? would you do about this manager, and why? As the owner of this company, what

Suppose that the company is willing to consider dropping the distribution centerlimitations; that is, customers could be served by any of the distribution centers forwhich costs are available. Can costs be reduced? If so, by how much? show all excel working

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)

A competitive firm has the following short-run cost function: c(y) = y3/3 - 10y2 +11y + 12. What is its marginal cost function? O y²-20y + 11 O 3y2-20y + 11 +12/y Oy-20y2 + 11y2 + 12 Oy2-30y + 11 +12/y