Given the total revenue and the total cost function in # 18, the corresponding marginal revenue is computed as MR = 78 – 4Q, while the marginal cost is MC = 2, find the optimal level of output that maximizes profits where MR = MC A. Q = 18 B. Q = 19 C. Q = 20 D. Q = 21 E. No correct answer

Given the total revenue and the total cost function in # 18, the corresponding marginal revenue is computed as MR = 78 – 4Q, while the marginal cost is MC = 2, find the optimal level of output that maximizes profits where MR = MC A. Q = 18 B. Q = 19 C. Q = 20 D. Q = 21 E. No correct answer

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: The total revenue curve of a firm is R(q) = 40q – 12q² and its 400 average cost A(q) =9 – 12.85q +…

Q: 7. A firm's revenue function is R(q) = 90q - 2q². Its cost function is C(q) = 104 + 6q+1.5q² a)…

A: The additional revenue that a firm receives from selling one more unit of its product is termed…

Q: A firm has the following revenue and cost functions. TR = 60 Q – Q2 TC =1⁄2Q2 +30Q +30 Determine…

A: Profits = Total Revenue - Total Cost Profit is maximium when: marginal revenue = marginal cost

Q: Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output…

A: Here, given information is: Output level= 100 units Average total cost= $11 Total variable cost=…

Q: You're running a small firm, and you have an estimate of both your cost function and your demand…

A: Total revenue is the product of price and quantity. Profit is the difference between the total…

Q: Assume a competitive firm faces a market price of $70, a cost curve of! C=0.002q + 30q + 750, MC =…

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

Q: Now compute the missing marginal revenue from the table. The table is reproduced here for…

A: Marginal Cost (MC):Marginal cost is the additional cost incurred by producing one more unit of a…

Q: A firm has revenue given by R(q) = 160q - 3q2 and its cost function is C(q)…

A: Profit maximization refers to the process of producing the level of output at which the firm will…

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: The intersection of a firm's marginal revenue and marginal cost curve determines the level of output…

A: A firm maximises its profit when the marginal revenue is equal to the marginal cost (MR=MC).

Q: 4/ Suppose that the total cost of a firm TC(Q) function =: TC(Q) = 75Q + 800 And the demand function…

A: Quantity is denoted by Q and price is denoted by P. Profit = Revenue - Cost Revenue = Price per unit…

Q: 3. A firm has revenue given by R(q) = 100q - 3q² and its cost function is C(q) = 100 + 10q. a) What…

A: Profit is the difference between revenue and cost function.

Q: Rhing a small firm, and you have an estimate of both your cost function and your demand curve. Your…

A: Total Revenue: The total revenue is the product of price and the quantity. TR = P * QProfit: The…

Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a…

A: A perfectly competitive firm is a price taker, which means it takes the price determined by market…

Q: The profit-maximising output will never be greater than the (profit-satisficing) sales revenue…

A: A firm maximizes profit at where the MC is equal to MR. Sales revenue maximizes at the point where…

Q: Find marginal profit if:- Marginal revenue =33 Marginal cost = 12

A: The data presented in the question above is:- Marginal revenue =33 Marginal cost = 12 We have to…

Q: A perfect competitive firm estimates her cost function as given below: C = 100 + 5Q2 a. What is the…

A: Profit maximization is one of the key goals of firms operating in a competitive market. Profit is…

Q: An automobile repair shop charges the competitive market price of $16 per bike repaired. The firm's…

A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…

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: 2. A firm has a cost function of C = 1000+20Q + 1/10Q2 and has a demand function as shown in the…

A: (a) : The estimated demand function would be: P = 100−Q (b) : The firm's revenue function (R) is : R…

Q: Problem 3 A furniture maker builds and sells wooden benches. The demand function for the benches is…

A: Profit is the excess income earned by the producer which is left after paying off all the expenses…

Question

19. Given the total revenue and the total cost function in # 18, the corresponding marginal revenue is computed as MR = 78 – 4Q, while the marginal cost is MC = 2, find the optimal level of output that maximizes profits where MR = MC

A. Q = 18

B. Q = 19

C. Q = 20

D. Q = 21

E. No correct answer

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!

SEE SOLUTION Check out a sample Q&A here

Step 1- Introduction

VIEW

Step 2- Explanation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Please help with f.
Please provide answer in 1 hr please
A profit-maximizing firm decides to shut-down production in the short-run. Its total fixed cost of production is $100, i.e. TFC = $100. Which of the following statements is true? a If the firm produced, the firm's revenues would have been lower than $100. bIf the firm produced, the firm's total variable cost must be lower than $100. cIf the firm produced, the firm's losses would have been higher than $100. dIf the firm produced, the firm's total variable cost would have been higher than $100.
A firm's profit function is T(q) = R(q) – C(q) = 40q – (35 + 20q + - 10q²). What is the positive output level that maximizes the firm's profit (or minimizes its loss)? What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run? The output level at which the firm's profit is maximized is q =. (Enter your response as a whole number.) At this level of output, the firm's revenue (R) is $ (Enter your response as a whole number.) At the profit-maximizing level of output, the firm's variable cost (VC) is $ - (Enter your response as a whole number.) Profit (T) is $ (Enter your response as a whole number and include a minus sign if necessary.) The firm should produce in the short run.
A firm's profit function is (q) = R(q) - C(q) = 140q-(410+20q+10q²). What is the positive output level that maximizes the firm's profit (or minimizes its loss)? What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run? The output level at which the firm's profit is maximized is q = (Enter your response as a whole number.) At this level of output, the firm's revenue (R) is $. (Enter your response as a whole number.) At the profit-maximizing level of output, the firm's variable cost (VC) is $ Profit (x) is $. (Enter your response as a whole number and include a minus sign if necessary.) The firm should in the short run. (Enter your response as a whole number.)
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 table