Suppose demand is Q = 10000 - 1000P and marginal cost is constant at MC=6. From the given demand curve, one can compute the following marginal revenue curve: MR = 10 - Q/500 a. Graph the demand, marginal cost, and marginal revenue curves show full and complete calculations for each.

Suppose demand is Q = 10000 - 1000P and marginal cost is constant at MC=6. From the given demand curve, one can compute the following marginal revenue curve: MR = 10 - Q/500 a. Graph the demand, marginal cost, and marginal revenue curves show full and complete calculations for each.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose a firm that produces pints of gourmet ice cream has monthly fixed costs of $12,000. The…

A: The profit is the difference between the total revenue and total cost. The firm earns the positive…

Q: Suppose it costs c(x) = x³ – 6x? + 15x dollars to produce x radiators when 8 to 10 radiators are…

A: Marginal revenue is the additional revenue earned from the sale of an extra unit of output. Marginal…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: Suppose that the manager of a firm operating in a competitive market has estimated the firm's…

A: A competitive market is a market where there are numerous number of producers competing with one…

Q: The marginal revenue (in thousands of dollars) from the sale of x gadgets is given by the following…

A: Given Marginal revenue: R'(x)=4x(x2+30,000)-2/3 Here revenue is in thousands of doller. Revenue…

Q: The total revenue curve of a firm is R(q) = 40q – 12q² and its 400 average cost A(q) =9 – 12.85q +…

Q: demand curve faced by the firm is: P = 230 - 4Q where Q = Q1 + Q2 total cost equations for the two…

A: MC (marginal cost) is the cost incurred by the firm when an additional unit of a good is produced.…

Q: Suppose the Sunglasses Hut Company has a profit function given by P(q) = 0.01q2 + 3q - 21, where q…

A: (a) Marginal Profit tells the change in profit due to an additional unit of quantity.…

Q: Calculate the marginal revenue when marginal profit is $23 and the marginal cost is $78

A: # Marginal revenue is the additional revenue generated with the sale of an another unit of good and…

Q: A firm has the following revenue and cost functions. TR = 60 Q – Q2 TC =1⁄2Q2 +30Q +30 Determine…

A: Profits = Total Revenue - Total Cost Profit is maximium when: marginal revenue = marginal cost

Q: Suppose a firm faces the following total costs, TC ( and suppose the firm can only produce integer…

A: Given information Q TC 0 6 1 11 2 15 3 18 4 20 5 22 6 25 7 29 8 36 9 45 10…

Q: Calculate marginal profit if marginal cost and marginal revenue are $44 and $80 respectively

A: The data presented in the question above is:- Marginal revenue = $80 Marginal cost = $44 Marginal…

Q: Find the marginal profit. C(x)=4x^2; R(x)=x^3+5x+15

A: Profit=Revenue-CostProfit=(x3+5x+15)-(4x2)Profit=x3-4x2+5x+15

Q: If marginal profit is negative what information can you infer about marginal cost and marginal…

A: Marginal profit is given as :- Marginal profit = Marginal revenue - Marginal cost It's given that…

Q: If economic profit is $5000, explicit cost is $1200, total revenue is $7000 Calculate the value of…

A: The given information is as follows:- Economic profit of the firm = $5000 Explicit costs = $1200…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: In a competitive market, there are large number of firms selling identical products. Firm's ATC is…

Q: b) A firm's total cost function is TC = 0.1Q³ -0.5Q² + 8Q + 10 and total revenue is TR = 52Q -0.25Q²…

A: As given TC = 0.1Q3 -0.5Q2+8Q +10 TR = 52Q - 0.25Q2 +8

Q: You sell items. Your marginal revenue and marginal cost are given by the formulas: MR (q)=…

A: The firm would involve the cost of the production of the goods and services to produce goods and…

Q: Jesaki Inc. is trying to enter the widget market. The research department established the following…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: The total revenue curve of a firm is R(x) = 32·5x – 12x2 and its average cost A(x) = x² – 13x + 20…

A: It is given that R(x) = 32.5x – 12x2 (Revenue Function) A(x) =…

Q: Calculate the value of Marginal revenue when marginal cost is $73 and the marginal profit is 0

A: # the marginal profit is given as the difference between the marginal revenue which is collected by…

Q: In order to maximize profit, the firm will choose to produce where marginal revenue is equal to…

A: Marginal Revenue refers to the additional revenue earned by producing an additional unit of output.…

Q: If marginal profit is $32 and marginal revenue is $50 Find Marginal cost

A: The data presented In the question above is:- Marginal profit = $32 Marginal revenue = $50…

Q: For the following, decide whether you agree or dis-agree and explain your answer: a. A firm earning…

A: A perfect competition is the form of market that consist of large number of buyers and sellers,…

Q: Find the marginal cost, marginal revenue, and marginal profit functions. C(x) = 4x; R(x) = x³ + 5x +…

A: Marginal cost is the additional cost incurred by a firm by producing one extra unit and the…

Q: A firm has the following revenue and cost functions. TR = 60 Q – Q2 TC = 12 Q2 +30 Q + 30 Determine…

A: A business organization obtains the highest amount of economic profits by selling the quantity…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

Q: (3) The demand curve of a firm is p=1200-21g and its total cost is C(q) = 24 -66q +600q+1000 where q…

A: Answer: Note: only the second part has been answered as you have mentioned. Give, Demand function:…

Q: A manufacturer knows that: His TR is given by Revenue = 23Q – Q2…

A: The point where the marginal revenue is equal to the marginal cost is the point of profit…

Q: A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20 a. Find…

A: Our goal is to determine the profit-maximizing production level, calculate the associated profit,…

Q: PRICE (Dolla 120 80 40 0 Supply 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Handbags)…

A: Consumer surplus is a measure of consumer well-being arises from purchasing a product. It arises as…

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: Your firm “We Work Eot U" rents access to shared open office spaces for a price of $540 per year.…

A: TR= 540Q TC= 80000+40Q+0.5Q2 Price= $540 per year In perfectly competitive market, for profit…

Question

Suppose demand is

Q = 10000 - 1000P

and marginal cost is constant at MC=6. From the given demand curve, one can compute the following marginal revenue curve:

MR = 10 - Q/500

a. Graph the demand, marginal cost, and marginal revenue curves show full and complete calculations for each.

Video Video

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

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A firm has a cost function of C = 1000 + 20Q + 1/10Q2a) Estimate the firm’s demand function. You may assume that the slope is a wholenumber, and the intercept is a multiple of 10. b) Find the firm’s revenue function. You do not need to draw it. c) Find the marginal revenue function, and draw it on a copy of the graph. d) Find and draw the marginal cost function.e) Use your results from parts (c) and (d) to find the profit-maximising level of output.(3 marks)f) Find the market price at this level of output.
Find the marginal profit when the Marginal revenue is $1120 billion and marginal cost is $680 billion
At what output rate does the firm maximize profit or minimize loss?
Find marginal profit when marginal revenue is $90 and marginal cost $50
Pierce Manufacturing determines that the daily revenue, in dollars, from the sale of x lawn chairs is R(x)=0.005x³ +0.02x² +0.5x Currently, Pierce sells 90 lawn chairs daily a) What is the current daily revenue? b) How much would revenue increase if 95 lawn chairs were sold each day? c) What is the marginal revenue when 90 lawn chairs are sold daily? d) Use the answer from part (c) to estimate R(91), R(92), and R(93) a) The current revenue is $ b) The revenue would increase by $ (Round to the nearest cent.) c) The marginal revenue is $ when 90 lawn chairs are sold daily. d) R(91) $ R(92) $ R(93) $
Problem 2.5 The cost function for Acme Laundry is TC(q) = 10 + 10q + q^2 so its marginalprod cost function is MC(q) = 10 + 2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?
please answer the third one ,no handwriting please makes it hard to read
Sketch a marginal cost curve for a firm that has constant marginal costs of production up to its capacity of 500 units but which cannot increase its output beyond that capacity PLEASEE SHOW THE CURVE
Should a company produce more goods when marginal revenue is greater than marginal costs? Explain.
What is the Marginal Revenue of the function Q=800p^-2
Please provide quick answer
If marginal profit is $33 and marginal revenue is $80 What's the value of Marginal cost