In the equation below, how did the professor get 14? Profits=P*Q-(3-5Q)Where P is 7.5 and Q is 2.5 Profits=7.5*2.5-3-5(2.5) I understand how he got the 18.75 (7.5*2.5=18.75), but I don't understand how he got 14 as the answer to -3-5(2.5). But I could also being going about this completely incorrectly ... **Profit Calculation Example**This example demonstrates how to calculate profits using a specific formula. 1. **Profit Formula:** \[ \text{Profits} = P \times Q - (3 - 5Q) \] - **P** represents the price per unit. - **Q** stands for the quantity of units.2. **Calculation:** \[ \text{Profits} = 7.5 \times 2.5 - 3 - 5(2.5) \] Step-by-step breakdown: - First, multiply the price per unit (P = 7.5) by the quantity (Q = 2.5) to get 18.75. - Then, calculate 5 times the quantity (5×2.5 = 12.5). - Subtract 3 from this product (12.5 - 3 = 9.5). - Finally, subtract this result from the initial multiplication (18.75 - 12.5 = 6.25), yielding the final profit: \[ \text{Profits} = 18.75 - 14 = \$4.75 \]This calculation shows that the profit is $4.75.

Answered: In the equation below, how did the…

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

Question

100%

In the equation below, how did the professor get 14?

Profits=P*Q-(3-5Q)

Where P is 7.5 and Q is 2.5

Profits=7.5*2.5-3-5(2.5)

I understand how he got the 18.75 (7.5*2.5=18.75), but I don't understand how he got 14 as the answer to -3-5(2.5). But I could also being going about this completely incorrectly ...

**Profit Calculation Example**

This example demonstrates how to calculate profits using a specific formula.

1. **Profit Formula:**

\[
\text{Profits} = P \times Q - (3 - 5Q)
\]

- **P** represents the price per unit.
- **Q** stands for the quantity of units.

2. **Calculation:**

\[
\text{Profits} = 7.5 \times 2.5 - 3 - 5(2.5)
\]

Step-by-step breakdown:

- First, multiply the price per unit (P = 7.5) by the quantity (Q = 2.5) to get 18.75.
- Then, calculate 5 times the quantity (5×2.5 = 12.5).
- Subtract 3 from this product (12.5 - 3 = 9.5).
- Finally, subtract this result from the initial multiplication (18.75 - 12.5 = 6.25), yielding the final profit:

\[
\text{Profits} = 18.75 - 14 = \$4.75
\]

This calculation shows that the profit is $4.75.

Expert Solution

Step 1

profits are measured as the difference between total revenue and total cost . Where Cost includes fixed as well as variable cost.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge 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.

Similar questions