Q.No.3. (a) What is the input use level for total value product maximization for the following function? y = x1 + 0.1x12 - 0.05x13 + x2 + 0.1x22 - 0.05x23 Q.No.3. (b) Briefly make a comparison between output maximization criteria and profit maximization criteria with respect to necessary and sufficient conditions?

Q.No.3. (a) What is the input use level for total value product maximization for the following function? y = x1 + 0.1x12 - 0.05x13 + x2 + 0.1x22 - 0.05x23 Q.No.3. (b) Briefly make a comparison between output maximization criteria and profit maximization criteria with respect to necessary and sufficient conditions?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

See similar textbooks

Related questions

Q: 14.The demand function for a new product is p(x) = - 2x + 7 , where p is the selling price of the…

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

Q: (c) The demand function for a good is given as Q = 25-2P Fixed costs associated with producing that…

A: Fixed Cost = €10Variable Cost = €2 per unitDemand Function : Q= 25 -2P or,

Q: 2) The owner of a restaurant that you are thinking of purchasing, tells you for x customers per week…

A: Cost : C(x)=15000+2x Revenue : R(x)=500x-3x2 a) Profit P(x) = Revenue R(x)-Cost C(x)…

Q: Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and…

A: Total profit = Total revenue - Total cost Revenue = Price * Quantity

Q: A factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both…

A: Costs are the expenses that a firm incurs in the form of purchase of inputs to produce goods and…

Q: 10) Find the marginal and average functions for the following total functions and graph the results.…

A: Total Cost Function C = 3Q2 + 7Q +12

Q: A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations…

A: Demand signifies the amount of a particular commodity or service that individuals are inclined to…

Q: Question…

A: Price discrimination refers to the process of charging different price for the same good in…

Q: Let the demand function for a product be given by the function D(q) = -1.65q + 270, where q is the…

A: The positive difference between the revenue earned from selling goods, providing services, or…

Q: A firm's total revenue (TR) and total cost (TC) functions are TR = 110Q — 5Q2 TC = 10Q —…

Q: ind the marginal and average functions for the following total functions and graph the results.…

A: (a) The total (TC) cost function of the firm is, C = 3Q^(2n) + 7Q + 12 The marginal (MC) cost…

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: Given Cost and Price (demand) functions C(q) = 110q + 45000 and p(q) = - 2.8q+ 800, what profit can…

A: Thank you for the question, since you have posted multiple questions. As per BNED policy we can…

Q: C=19,250+70x+x2, where C is measured in dollars. For both unctions, the input x is the number of…

A: A profit function is a mathematical relationship between a firm's total profit and output. It equals…

Q: The marginal revenue (in thousands of dollars) from the sale of x handheld gaming devices is given…

A: The total revenue function, denoted by far the most typical revenue function formula. Also known as…

Q: Given the input-output matrix below, find the output matrix if final demand changes to 500 for…

A: Demand is the quantity of consumers who are willing and ready to buy products at various prices…

Q: Let the demand function for a product be given by the function D (q) = -1.45 q +290, where q is the…

A: The demand function shows the relationship between demand and its determinant. There is an inverse…

Q: Consider a firm with the market demand function for its product given by: p =1000 – 2Q; and total…

A: P =1000 – 2Q TC = Q3 – 59Q2 + 1315Q + 2000

Q: (i) If the demand function for a particular commodity is p=−0.09x+51 and the total cost function…

A: Hi there! Thank you for the question. We only answer one question as per our Honor Code. Therefore,…

Question

Q.No.3. (a) What is the input use level for total value product maximization for the following function?

y = x₁ + 0.1x₁² - 0.05x₁³ + x₂ + 0.1x₂² - 0.05x₂³

Q.No.3. (b) Briefly make a comparison between output maximization criteria and profit maximization criteria with respect to necessary and sufficient conditions?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Q.No.3. (a)

VIEW

Q.No.3. (b) Comparison between output maximization criteria and profit maximization criteria

VIEW

Step by step

Solved in 3 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

The total revenue function for a product is given by R=655x dollars, and the total cost function for this same product is given by C=19,250+70x+x2, where C is measured in dollars. For both functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 25 units are produced and sold? c. What is the profit when 43 units are produced and sold?
None
Solve this question below
(i) If the demand function for a particular commodity is p=−0.09x+51 and the total cost function C(x)=1.32x2+11.7x+101.4,where x is the level of production. Find (a) The revenue R(x) and profit Π(x). (b) All values of x for which production of the commodity is profitable. (ii) The total cost of manufacturing x units during the daily production run at a factory,is C(x)= x2+ x+900 dollars. Usually,x(t)=25t units are manufactured during the first t hours of production. (a) Express the total manufacturing cost as a function of t. (b) How much will have been spent on production by the end of the third hour? (c) When will the total manufacturing cost reach $11,000?
A firm's total revenue (TR) and total cost (TC) functions are TR = 110Q — 5Q2 TC = 10Q — O2 + 0.33Q3 Determine: a) Equations for marginal revenue and average revenue(b) Equations for marginal cost and the average cost (c) The output rate that maximize total revenue
Want every single part
A linear revenue function is R = 86x. (Assume R is measured in dollars.) (a) What is the slope m? m = Let C(x) = 7x + 550 and R(x) = 28x. (a) Write the profit function P(x). P(x) = (b) What is the marginal revenue MR? MR = What does the marginal revenue mean? ○ Each additional unit sold yields this many dollars in revenue. ○ If the number of units sold is increased by this amount, the revenue decreases by $1. ◇ Each additional unit sold decreases the revenue by this many dollars. ◇ If the number of units sold is increased by this amount, the revenue increases by $1. (c) What is the revenue received from selling one more item if 50 are currently being sold? $ What is the revenue received from selling one more item if 100 are being sold? $ (b) What is the slope m of the profit function? m = (c) What is the marginal profit MP? MP = (d) Interpret the marginal profit. ○ Each additional unit sold increases the profit by this much. ○ This is the smallest number of units that can be sold in…
leave answer in calculator ready form
(a) Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750mlsize is q = 4000 − 250p and his total cost function is C(q) = 500 + 0.2q.
14.The demand function for a new product is p(x) = - 2x + 7 , where p is the selling price of the product and x is the number sold in thousands. The cost function is C(x) = x + 2 . a) Determine an equation for the profit, in standard form and in function notation. b) How many units must be sold for the company to break even?
2) The owner of a restaurant that you are thinking of purchasing, tells you for x customers per week the weekly cost and revenue in dollars is C(x) = 15000+2x and R(x) = 500x-3x² a) Find the profit function P(x) b) Find the break-even quantities rounding properly to a whole number. (Hint: Use the Quadratic formula) c) Why is the minimum break-even quantity important?
Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Required. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.? 2. Now consider two cases: (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit…