PQ7.2(b) Case: Average Revenue Demand Curve (AR): P=120-0.02Q Weekly Production (Q) Price (P) (Cents/Unit) Cost Function (C) = 60Q +25,000 Marginal Cost (MC) = Slope of Total Cost (TC) Curve = 60 Assume: Maximum Profit. Question: (This Question - Only) What will the new Level of Production, Price, and Total Profit per week be - assuming Maximum Profit, if the government decides a 14 cent Tax Levy per unit on the product from PQ7.2(a),↓ Bartleby Expert Answer PQ7.2(a): What is the Level of Production, Price, and Total Profit per week - assuming Maximum Profit? Answer: Level of Production (0) = 1,500 Price (P) = 90 Profit (n) = 20,000

PQ7.2(b) Case: Average Revenue Demand Curve (AR): P=120-0.02Q Weekly Production (Q) Price (P) (Cents/Unit) Cost Function (C) = 60Q +25,000 Marginal Cost (MC) = Slope of Total Cost (TC) Curve = 60 Assume: Maximum Profit. Question: (This Question - Only) What will the new Level of Production, Price, and Total Profit per week be - assuming Maximum Profit, if the government decides a 14 cent Tax Levy per unit on the product from PQ7.2(a),↓ Bartleby Expert Answer PQ7.2(a): What is the Level of Production, Price, and Total Profit per week - assuming Maximum Profit? Answer: Level of Production (0) = 1,500 Price (P) = 90 Profit (n) = 20,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. If the Marginal Cost for a product is found to be MC = 10e0.5%, and the Marginal Revenue is given as MR = 1300 and the cost of 10 units is found to be $4000, what are: a. the Total Cost Function? b. the Fixed Cost value? c. the Total Profit Function? d. the production level, x, that yields Maximum Profit? e. the corresponding Maximum Profit value?
Calculate accounting profit given:- Total revenue = $4500 Explicit cost = $4500
Q3 need in 10 minutes
For each lettered space in the following table, determine the appropriate dollar amount.
(b) Also, use this information to then set up another diagram showing the firm's short run marginal cost (MC), average total cost (ATC), and average variable cost (AVC), with output on the horizontal axis (For the marginal cost, remember that when you graph marginal values you should always put them in the middle of the horizontal range that they are calculated over).