Question 1.05 Assume a firm sells an album for $25 per copy. The firm must pay $6 in royalties and $9 in production costs for each album. If 60 copies are sold, how much profit (value capture) was the firm able to make? Answer:

Question 1.05 Assume a firm sells an album for $25 per copy. The firm must pay $6 in royalties and $9 in production costs for each album. If 60 copies are sold, how much profit (value capture) was the firm able to make? Answer:

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

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Question 14 “Healthy Morning” is a firm that produces breakfast cereal and suppose breakfast cereal is a competitive market. The firm earned $10,000 in total revenue and had a marginal revenue of $10 for the last unit produced and sold. What is the average revenue per unit, and how many units were sold? $10 and 500 units $5 and 1000 units $10 and 1000 units $5 and 500 units
Question 7 A firm, focusing on producing toothpaste has a demand function 2? = 10 − 0.25?. If fixed cost per unit is -(+ and variable cost per unit function is 2? − 20 + -)), where Q is number of toothpastes produced and P is the price per toothpaste: a) Determine the number of toothpastes that maximizes the company’s profit. b) How much should the firm charge for one toothpaste? c) Find the total profit at the profit maximizing level of output. d) Using the own price elasticity of demand, comment on the firm's pricing policy options.
$150 $145 $140 MC $135 $130 $125 $120 $115 ATC $110 $105 $100 $95 $90 $85 $80 AVC $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 0 1 2 3 5 6 Quantity Produced 7 8 9 10 11 The graph above shows the cost functions for a perfectly competitive profit maximizing firm. If the market price of the product is $70 per unit, the firm will produce units, will cover make an economic profit of dollars. dollars of its fixed cost, and will
Suppose a car firm's marginal revenue of selling a car is $2,100 and marginal cost of producing a car is $2,150. In this case, producing one more car will _____. Question 14 options: a increase profit b decrease profit c neither increase nor decrease profit d not enough information
Question 4: Profit Maximization Price per Quantity Marginal Use the table on the left to answer the following sub-questions. (Hint: It may be useful to draw a diagram based on the information provided to Unit Demanded Revenue $100 $90 40 $90 help you visualize the question.) $80 80 $70 Imagine that a vaccine for COVID-19 is designed, patented and produced by PharmaCo, Inc.; so, now PharmaCo, Inc. is a monopolist producer of this new vaccine that everyone needs. Phar- maCo, Inc. has a constant marginal cost of pro- duction of $10 per unit of the vaccine. For sim- plicity, we will say that average total cost is also constant at $10 per unit. $70 120 $50 $60 160 $30 $50 200 $10 $40 240 -$10 $30 280 -$30 $20 320 -$50 $10 360 -$70 1. How many units of the vaccine will PharmaCo, Inc. produce and supply? Why? 2. How much profit is earned by Pharmaco, Inc. if it produces the quantity you mentioned above? 3. If Pharmaco, Inc. did not have a patent, and the market were perfectly competitive with…
None
Hayfever Farms is an 80-acre hay farm in Colorado. The owners are considering changing the farm's name to Blissful Acres and growing strawberries instead of hay. Use the table of marginal cost (MC) and marginal revenue (MR) to answer two questions. Number of acres MC $ MR $ (hay) MR $ (strawberries) 10 320 730 5600 20 200 730 5600 30 540 730 5600 40 730 730 5600 50 1200 730 5600 60 3200 730 5600 70 5600 730 5600 80 6700 730 5600 If they continue to only grow hay, how many acres should Hayfever Farms devote to growing hay in order to maximize profits? acres of hay: acres If the owners decide to only grow strawberries, how many acres should Blissful Acres devote to growing strawberries in order to maximize profits? acres of strawberries:
Q10 needed Q8 pic is just for reference Question 10 Refer to Table 5-1 and the firm in Question 8, How much profit does the firm make at the chosen quantity? (enter just the number, no $)
10