Q4.Refer to the figure below. If the firm is producing the level of output which maximizes profit, its total revenue is ________. (Hint: after finding the profit-maximizing quantity, use the demand curve to identify the corresponding price.) a.) $480 b.) $420 c.) $160 d.) $540 The image displays a graph representing cost and revenue curves in microeconomics. The graph plots Price ($) on the vertical axis and Quantity on the horizontal axis. Here's a detailed explanation:1. **Curves:** - **MC₁ (Marginal Cost):** This curve is upward-sloping, typically representing the cost of producing one more unit of a good. - **ATC₁ (Average Total Cost):** This U-shaped curve represents the average total cost per unit at different production levels. - **AVC₁ (Average Variable Cost):** Another U-shaped curve below the ATC curve, indicating the average variable cost per unit. - **MR₁ (Marginal Revenue):** Downward-sloping dashed blue line, representing the additional revenue from selling one more unit. - **D₁ (Demand Curve):** Downward-sloping solid blue line, illustrating the relationship between price and quantity demanded.2. **Intersection Points:** - The intersection of MC₁ and MR₁ helps determine the profit-maximizing quantity. - The point where the demand curve (D₁) intersects with any cost curve can indicate various economic insights such as pricing or loss/profit scenarios.This graph can be used to analyze economic concepts such as profit maximization, cost management, and pricing strategy.

Ans) the correct option is a) $ 480

Refer to the figure below. If the firm is producing the level of output which maximizes profit, its total revenue is ________. (Hint: after finding the profit-maximizing quantity, use the demand curve to identify the corresponding price.) a.) $480 b.) $420 c.) $160 d.) $540

Refer to the figure below. If the firm is producing the level of output which maximizes profit, its total revenue is ________. (Hint: after finding the profit-maximizing quantity, use the demand curve to identify the corresponding price.) a.) $480 b.) $420 c.) $160 d.) $540

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

Question 3 please
Exercises: 1 Given the demand (price) and cost functions P=2000-40Q and C(Q) = 3000+400Q respectively, find the following, using the calculus approach: a. Profit-maximizing output (quantity) b. Profit-maximizing price c. Maximum profit value d. Revenue maximize Quantity
Question 4 please
The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable cost of recapping a tire is $9. The company charges $25 to recap a tire. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit. Determine the annual break-even volume for the Retread Tire Company operation. Graphically illustrate the break-even point using a one way table that relates volume to profit.
Continuing with the Table of Certificate Programs, complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment's bundle price. Online Self Certifications for Social Work License Certification in Online Counseling Certification as a Group Home Counselor Bundle Customers TR Counseling TR Group Home TR Bundle Segment 1 1000 $190 a $70 e $260 4a Segment 2 1000 $150 b $90 f $240 4b Segment 3 1000 $95 c $160 g $255 4c Segment 4 1000 $35 d $195 h $230 4d 4a) 4b) 4c) 4d)
11. A company produces a certain good for which the (inverse) demand function is given by p = 15 - 2q, where p is the unit price (expressed in some monetary unit) and q is the quantity sold (expressed in some non-specified unit). The fixed costs amount to 6.5 monetary units and the variable costs amount to 1 monetary unit per non-specified unit of the good. We assume that all goods produced are sold. a. Find the function equation for the profit functionP in terms of the quantity q. b. Find the domain of the profit function P. c. Determine for which production levels q the company makes a profit.
I pretty sure I got the first part right. I am struggling with bottom parts.
(b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p 40 – 4q²where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (1) Write an equation giving profit as a function of the number of lightweight compasses produced. (11) At the moment the company produces 2 million lightweight compasses and makes a pre of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit? Σ BIUG G |卡三 = 9 ..
Suppose that you are the marketing manager of Citruscity, the only producer of grapefruits in the imaginary economy of Blockburg. As a monopolist, Citruscity's objective is to maximize its profit, so it is up to you devise a way to increase profits through price discrimination. As a former economics student, you know that many firms successfully practice price discrimination by separating their market into two identifiable types of consumers-what economists call third-degree price discrimination. Examples of this include student discounts, senior citizen discounts, and ladies' night discounts. After doing some research, you conclude that the demand for grapefruits varies greatly between consumers who clip coupons and those who do not. The following graphs show the overall dailly demand and marginal revenue (MR) for a pound of grapefruits for each group of consumers and the marginal cost (MC) for producing a pound of grapefruits. Assume that fixed costs are equal to zero. Note: You will…
Question: Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC-$1. The number of customers in the target population is 10,000. Analyze the challenges that the marketing firm will be facing to evaluate customer demand. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% Tweeners $2 10% Seniors $2 10% Others $0 40%
Question 1 please
4 Given: HP is trying to decide if they should run a 'Back-To-School' special on entry level computers. Estimate the slope of the annual supply & demand curves based on these quarterly price/quantity combinations. Q1: $500 Q2: $700 Price 0.0 Price Qp = 3.75 Question 5: Demand for HP Computers 0.0 0.0+ QD = Question 6: Supply for HP Computers 0.0 4.25 million Q = 6.6 Qs =7.5 million Quantity million Quantity million