You run a firm using two rented machines, the cost of rent is 100 each. Wage per worker (L) is 200. Theoutput table is as follows:(workers)0123456Q04Answer:1014171920If the price is $67, how much is your profit?

The objective of the question is to calculate the profit of a firm given the cost of rent, wage per…

Answered: You run a firm using two rented…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C=400+2q2, where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q;the fixed cost, FC, is $400). If the price of a watch is $100, how many watches should you produce to maximize profits? You should produce______watches.(Enter your response as an integer.) What will the profit level be? Profit will be $___________. (Enteryour response rounded to two decimal places.) At what minimum price will the firm produce a positive output? In the short run, the firm will produce if price is greater than $__________ per watch. (Enter your response as an integer.
A competitive firm's production function is f(L, M) = 8L¹/2 + 8M1/2. The price of L is $1 and the price of M is $3. The marginal product of L is 4/L1/2 and that of Mis 4/M¹/2. The price of output is $6. What is quantity of output? the profit-maximizing 512 516 244 256
(This is a single question with five parts to the answer. I would appreciate help with all five parts if possible. Image screenshot of the original question with the formulas more easily readable than can be identified here is attached) Tech firms produce goods and services from labor and energy. The total cost in dollars to produce y amount of goods and services for each firm j is cj(yj) = yi2. There are 100 identical tech firms which all behave competitively. What is the individual supply of technological goods and services? What is the market supply of technological goods and services? Suppose the demand curve for these goods is D(p)=200-50p. What is the equilibrium price and quantity sold? How much is the total surplus of this economy? Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total…
A firm produces 220 units of a good which cost an average of £8.25 each to produceand sells them at a price of £9.95. What is its total profit?
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.
Making dresses is a labor-intensive process. Indeed, the production function of a dressmaking firm is well described by the equation Q = L − L2∕800, where Q denotes the number of dresses per week and L is the number of labor hours per week. The firm’s additional cost of hiring an extra hour of labor is about $20 per hour (wage plus fringe benefits). The firm faces the fixed selling price, P = $40. Over the next two years, labor costs are expected to be unchanged, but dress prices are expected to increase to $50. What effect will this have on the firm’s optimal output? A- Increase B- Decrease C- No Effect
2
Problem 5 Suppose that a firm has a production function f(K, L) = 12L¹/3 K¹/3 and that w and r are input prices and p is output price. The firm does not change those prices. a) Show that the firm's profit π is a concave function of (K, L). b) Find (K*, L*) that maximizes the profit, as a function of (w,r, p).
If a Prof leaves their $100,000 per year job to start a business that earns annual revenue $400,000, and has annual labor and rental costs of $200,000, the economic profit of the business is $200,000.

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You run a firm using two rented machines, the cost of rent is 100 each. Wage per worker (L) is 200. The output table is as follows: (workers) 0 1 2 3 4 5 6 Q 0 4 Answer: 10 14 17 19 20 If the price is $67, how much is your profit?