Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC, data with the following results, where Q is quantity. TR= -0.008Q² + 32Q TC = 0.005Q² +2.2Q + 10 Given the computed amount Q in problem #2, its corresponding maximum profit is PBlank 1 (round off to whole number).

Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC, data with the following results, where Q is quantity. TR= -0.008Q² + 32Q TC = 0.005Q² +2.2Q + 10 Given the computed amount Q in problem #2, its corresponding maximum profit is PBlank 1 (round off to whole number).

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: Suppose a company has fixed costs of $40,800 and variable cost per unit of x+222 dollars, where x is…

A: The fixed cost is given as $40800The variable cost per unit is The selling price of the product is

Q: What is the average time per unit required to complete the first 3 units of a production process if…

Q: A company's unit costs based on 500,000 units are: Variable costs $32 Fixed costs 20 The normal unit…

A: In microeconomics theory, the opportunity cost of a particular activity is the value or benefit…

Q: A certain seed and fertilizer company compiled the following estimates for its operations. Capacity…

A: The total amount of money received from the sale of goods or services connected to a business's main…

Q: Given the average cost function as below, find the MC function. * AC=Q²-40+174 A) 20-4 B) 20-4+174…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Cost functions are derived from

A: # Cost function is a representation which helps in predicting the cost of good or service with…

Q: A company produces two types of solar panels per year: x thousand of type A and y thousand of type…

A: Answer: Given, Revenue function: Rx,y=3x+4y Cost function: Cx,y=x2-2xy+6y2+5x-28y-9 Profit= Revenue…

Q: The demand and cost function for a company are estimated to be as follows: P = 100 - Q…

A: A demand function is an equation that represents the relationship between the quantity demanded of a…

Q: What is the average time per unit required to complete the first 3 units of a production process if…

A: Time for first hour=100 hours Slope parameter=85% Tn=T1*nb

Q: None

A: SOLUTION. (c) Chief Benefit of the Black-Litterman ApproachOther than the ability to…

Q: Classification analysis as the method for approximation of variable and fixed costs a) Is using for…

A: Production and cost constitute the two basic economic concepts that impact business choices and…

Q: Let 10p + x = 100 be the demand equation, where p is the price per item when x items are demanded.…

A: Business economics requires making decisions and allocating resources in complex market…

Q: The IT department allocates indirect costs to user departments on the basis of CPU time at the rate…

A: Indirect cot (IC) is $2,000 per second. First department usage (FD) is 900 seconds. Second…

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: When talking about cost functions of a firm, it can be said that these coste function are…

Q: Suppose the company lacks confidence in the accuracy of cost estimates expressed in a cubic equation…

A: Cost refers to the total expenditure incurred during the production process. It includes fixed as…

Q: A factory manager is planning for the manufacture of plywood to be sold overseas. The fixed cost of…

A: Total Revenue = P *Q Total revenue is maximum when dTR/dQ = 0 Profits = Total Revenue - Total Cost…

Q: A marginal cost fiction C'(q) is given in the figure below. If the fixed costs are $10,000,…

A: Marginal cost is defined as the cost of producing an additional unit of the output. Marginal cost is…

Question

Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC, data with the following results,
where Q is quantity.
TR = -0.008Q² + 32Q
TC = 0.005Q² +2.2Q + 10
Given the computed amount Q in problem #2, its corresponding maximum profit is Blank 1 (round off to whole number).

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

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 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

Paradise Pottery had the following costs in May when production is 800 ceramic pots: materials, $8,700; labor (variable), $2,900; depreciation, $1,100; rent, $900; and other fixed costs, $1,500. If production changes to 900 units, how much will the total variable costs and total fixed costs be, respectively?
Suppose that the total variable cost for 5 outputs is equal to $100 and the total fixed cost for the same output is equal to $50. The total per unit cost (ATC) is? Group of answer choices $ 20 $ 100 $ 30 $ 50 $ 10
0 1 2 3 4 Total Product 5 6 Total Fixed Cost Total Variable Cost 165 Total Cost STC Q SAC = AFC + AVC || || AQ TFC Q SMC = Average Fixed Cost 22 53 AQ Use the definitions for TFC, TVC, TC, AFC, AVC, ATC and SMC along with the data provided above to fill in the missing values. Use space below for worksheet. ~ means infinitely large. Applicable relationships are: TVC Average Variable Cost 0 Q ATVC 60 Average Total Cost ATC 112.50 74.17 Marginal Cost 45 60
Mirtha owns an online jewelry store that specializes in earrings. In March, she sells 50 pairs of earrings priced at $15. The cost of materials to create the 50 pairs of earrings was $100. The website she uses to sell her wares costs her $10 a month, and she is also charged 4% on each sale by the company that processes debit/credit card purchases. Which of the following best represents Mirth’s total cost? Group of answer choices A)The $750 Mirtha earned from earring sales minus the materials ($100), online website charge ($10), and payment processing charge (4%) B)The sum of the materials ($100), website charge ($10), and 4% payment processing charge (4%) C)The cost of all the materials used to create the earrings, $100 D)The costs of materials minus the costs it takes to run her business through the online store, in this case the $10 website charges and the 4% payment processing charge
Classify the following costs into either being product cost or period cost:(a) Raw material costs(b) Income taxes paid(c) Interest expenses on borrowed funds(d) Wages incurred in producing products(e) Fire insurance premium paid on factory buildings(f) Electric bill for the warehouse operation(g) Salary paid for engineers(h) Material handling cost related to production(i) Salary paid for plant managerU) Leasing expense for forklift trucks in warehouse operation(k) Mortgage payments on factory buildings
A study of 86 savings and loan associations in six northwestern states yielded the following cost function. C� = 3.69 - 0.007999Q� + 0.000005359Q2�2 + 25.0X1�1 (3.69) (3.08) (3.42) (3.50) where C� = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q� = output; measured by total assets ($ million) X1�1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Holding constant the effects of bank branching (X1�1), what is the level of total assets that minimizes the average operating expense ratio? $746.31 million $1,562.70 million $1,492.63 million $461.31 million What is the average operating expense ratio for a savings and loan association with the level of total assets determined in the previous part and 1 branch?…
Economics Question
Find the Total Cost function as a function of q, c, d. A. w and r; and graph it in relationship to q in excel The idea is to solve the following input minimization problem ina general manner: minTC(K, L ) = wL+ rKs. t. q = AK^CL^d Make sure to set - up your spreadsheet by identifying the optimization problem, the endogenous variables, the exogenous variables and the constraint. Make sure also to show a cell that computes TRS and another that computes -w/r.