Pixie Arts and Graphics, a medium scale printing press business has determined the equation that describes the relationship of the price and demand of one of its products as Price=150 - 0.01•D (D as Demand per unit) for an annual printing of this product. The fixed costs annually = P50,000 and the variable cost = P40 per unit. Requirement: a. What is the maximum profit that can be earned? b. What is the unit price at this point of optimal demand if demand is not to be anticipated to exceed more than 6,000 units annually?

Pixie Arts and Graphics, a medium scale printing press business has determined the equation that describes the relationship of the price and demand of one of its products as Price=150 - 0.01•D (D as Demand per unit) for an annual printing of this product. The fixed costs annually = P50,000 and the variable cost = P40 per unit. Requirement: a. What is the maximum profit that can be earned? b. What is the unit price at this point of optimal demand if demand is not to be anticipated to exceed more than 6,000 units annually?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A local shoe has total costs of production given by the equation TC-125+10q+5q². The market demand for shoes is given by the equation QD-50- (1/5) *P. a) Write the equations showing the average total cost and average variable cost and average fixed cost, each as a function of q. b) What is the breakeven price and breakeven quantity for this firm in the short run? c) What is the shutdown price and shutdown quantity for this firm in the short run? d) If the market price of the output is $50, how many units will this firm produce? e) Given a market price of $50. how many firms are in this market?
Just for (d) I'd like to know how to compute the producer surplus. Thanks!
Canning companies sell one can at a price of 30 dinars, and the fixed costs are 400 thousand dinars Of which 200 thousand dinars are lost, and the variable cost of one box is 10 dinars, and sales amount to 50 thousand unit per year Required / Calculate the following: 1- Break-even point in units? 2- Cash break-even point in units? 3- The profit and loss of the company with a sales volume of 50,000 thousand per year? 4- The degree of working crane with a sales volume of 50 thousand cans
9 = √KE C10K+5E K = 1 C(q) = 10 +5q² Market price (P) : = 30 = 30 = 10q q = 3 P = MC = Profit per unit π = = = R TC P q q զ π = (P - ATC)q - P 30 25 20 15- - ATC 10 0 p = 30 Cost Curves for C(q)=10+5q² MC Profit ATC AVC AFC о 3 4 5 6
- Given the following information, determine the quantity that must be produced so the firm will break even Fixed cost= $30,000 Price= $8.90 Variable Cost per Unit (AVC)=$7.40
Math 1
2. Calculate the values of A, B, C, and D in the following table. Show your calculations. Price Marginal cost Markup on cost Markup on price (%) (%) 6,250 A 5.3 B C 10,000 D 0.0
Answer letter A
Please justify answer quickly
the firm faces additional shipping costs. In particular, it incurs a per unit cost of 10 for shipping output from Factory 1 to the market and a per unit cost of 5 for shipping output from Factory 2 to the market. How much does it charge per unit of output?
Revenue and Cost The total weekly revenue functionfor a certain digital camera is given by R = 550xdollars, and the total weekly cost function for thecameras is C = 10,000 + 30x + x2dollars, where xis the number of cameras that are produced and sold.a. Find the profit function.b. Find the number of cameras that gives maximumprofit.c. Find the maximum possible profit.
4 parts pls