Suppose demand for good 1 is given by pi = 26- 3¹ and demand for good 2 is given by p2 = 72 — 292. The firm has the cost function C = 120+q² for both goods where q = 9₁ +92. Compute the following 92. • The profit maximizing level of output for each good, i.e., 9₁ and • Verification that the quantities obtained in the first bullet will indeed maximize profit • The prices p₁ and på that the firm will charge for each good to maximize profit

Suppose demand for good 1 is given by pi = 26- 3¹ and demand for good 2 is given by p2 = 72 — 292. The firm has the cost function C = 120+q² for both goods where q = 9₁ +92. Compute the following 92. • The profit maximizing level of output for each good, i.e., 9₁ and • Verification that the quantities obtained in the first bullet will indeed maximize profit • The prices p₁ and på that the firm will charge for each good to maximize profit

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

***If the demand function is: P+ 2Q = 50 The fixed cost is 30, the variable cost per unit is: Q +3 Find the value of Q that break even O a. Q=0.67, Q=15 O b. Q=0.55, Q=13 Oc. Q=0.26, Q=15 O d. Q=0.67, Q=19 e. None of the above
Only part (b) please, thank you!
Suppose a firm has two plants. The costs are: TC = 30 + TC1 + TC2..TC1= 10Q1 + Q12 .TC2= 10Q2 + .5Q22 .The firm’s demand is Pm = 80 - .5Qm.Find the firm’s profit-maximizing P* and Q*, outputs allocated to plants 1 and 2 and overall profit.The profit maximizing profit is ?
Please Show Each and Every Working VERY CLEARLY. There are NO multi-questions here, only just multi-PART questions which are CONNECTED to each other, and hence, Please do NOT Leave any, Thank You! Profit Maximisation
i need it in words not handwritten
(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 ..
4. Consider a market where every firm and every potential entrant has the iden- tical cost function C(q) = 3q³-6q² +6q. (a) Find the firm's inverse supply function. (b) Suppose the market demand function is given by QP (P) = 20-2P. Find the long-run equilibrium price, quantity, and the number of firms. (c) Suppose the demand function suddenly becomes perfectly inelastic at quan- tity Q = 7. Find the long-run equilibrium price, quantity and the number of firms. (d) Suppose the demand becomes perfectly inelastic at quantity Q = 7, and the government decides to collect a per unit tax t = 4 from the producers for every unit of the good they sell. Find the long-run equilibrium price, quantity and the number of firms.
Feedback Imagine that the flat-screen TV market is made up of one large firm that leads the industry and sets its own price first, and another firm that follows the leader when deciding its own profit-maximizing strategy. The leader has a cost function of c₁ (91) = 5q1, and the follower has a cost function of CF (ar) = 4, where Q =q₁ + qr. Total market demand for flat-screen TVs is given by the function Q = 250.00-2p. Calculate the following values: Leading firm's production: q = Follower firm's production: qp = Equilibrium price: p= $49.37 9 OF 16 QUESTIONS COMPLETED 118.33 32.92 (Round to two decimals if necessary.) (Round to two decimals if necessary.) (Round to two decimals if necessary.) See Hint 4 VIEW SOLUTION SUBMIT ANSWER
A) Find the price function and then the TR function. B) Write the MR and MC functions below. Remember: MR = dTR/dQ and MC = dSTC/dQ. C) What positive value of Q will maximize total profit? Remember: setting MR = MC and solving for Q will give you the Q that maximizes total profit. The value of Q you get should not be zero or negative.
Please get correct.
2. A company produces an item at a unit cost of Rs. 5. If the supply finction is given by q= 150+6p (where q is the quantity produced and p is the market price), finad the market price at which the company realizes a total profit of Rs. 500.
Let us consider an economic sector characterized by the following data. The (inverse) demand function is p = 20 -2q with q the quantities produced by the firms in the sector and p the price. The total cost of production for any firm in the sector is: CT(q) = q* - 4q +5 (I have included the questions and answers a) and b) if necessary) a) First, assume that there is only one firm, firm 1, in the industry. Calculate the price, quantity produced and profit of firm 1 in a monopoly situation that wants to maximize its profit Answer: Total Revenue = p*q = (20 - 29) q Marginal Revenue = d(TR)/dq = 20 - 4g Marginal Cost = d(Cq)/dq = 2q - 4 Putting in optimal condition: MR = MC 20 - 4g = 29 - 4 Putting in demand function: p* = 12 (Profit maximizing Output) q* = 4 (Profit maximizing Output) b) Firm 1 seeks to deter the entry of another firm, firm 2, into its market through a sustainable monopoly strategy. Calculate the equilibrium price, quantity and profit of firm 1 given this strategy Answer:…