The revenue generated by a food stand can be modeled by a Pareto distribution with a =2 and0 = 400. Total cost is 200 regardless of the amount of revenue generated.Calculate the expected profit of the food stand if the food stand is profitable.A100200400б00E800

Pareto distribution is that kind of distribution of a random variable which is heavy tailed and…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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To produce the next popular toy, a company has to pay a factory $250, 000 to set up the production line. They also have to pay $25 per item for the raw materials and labor. Write function for the average cost to produce x items. Then describe what happens to the average cost as the factory produces a large number of toys.
Total revenue of the firm is $5100 and the total cost is also $5100 Calculate profits of the firm (B) What is the profit maximization condition of the firm
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? units
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The daily demand function for x LED lights sold by a major retailer is p = 1112.5 0.75x dollars, and the average cost of sales is C = 250 + 3x dollars. Find the quantity that will maximum profit, the selling price at that quantity and the maximum profit. a) Selling LED lights will maximum profit. b) The selling price at the answer in part (a) is $ c) The maximum profit is $
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A manufacture has been selling 1400 television sets a week at $450 each. A market survey indicates that for each $22 rebate offered to a buyer, the number of sets sold will increase by 220 per week. a) Find the demand function p(x), where x is the number of the television sets sold per week. p(x) = b) How large rebate should the company offer to a buyer, in order to maximize its revenue? $ c) If the weekly cost function is 105000 + 150x, how should it set the size of the rebate to maximize its profit? $ Submit Question
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Website Profit You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 1120 log-ons per month. When you lowered the price to $2.50, the demand increased to 1400 log-ons per month. (a) Construct a linear demand function for your website and hence obtain the monthly revenue R as a function of the log-on fee x. R(x) = = (b) Your Internet provider charges you a monthly fee of $50 to maintain your site. Express your monthly profit P as a function of the log-on fee x. P(x) = Determine the log-on fee you should charge to obtain the largest possible monthly profit (in dollars). X = $ What is the largest possible monthly profit (in dollars)? $ LA

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The revenue generated by a food stand can be modeled by a Pareto distribution with a = 2 and 0 = 400. Total cost is 200 regardless of the amount of revenue generated. Calculate the expected profit of the food stand if the food stand is profitable. A 100 200 400 600 E 800