Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Question
Chapter 14, Problem 14.3P
a)
To determine
To find: The calculation of profit,
b)
To determine
To find: The calculation of profit, price, and quantity.
c)
To determine
To find: The calculation of profit, price, and quantity.
d)
To determine
To find: The graph showing the different situations.
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Students have asked these similar questions
Please use profit max formula(s)
Show step by step and write the answer at the end like "The max profit will be ___"
Suppose a firm faces a demand curve for its product P = a
- bQ, and the firm's costs of production and marketing
are C(Q) = cQ + d, where P is price, Q is quantity, and a, b,
c, and d are positive constants. Express the profit of the
firm as a function of quantity.
Suppose the firm faces a demand curve for its product P
= 32 - 20, and the firm's costs of production and
marketing are C(Q) = 2Q2 . Find the following
• An expression for profit
• Find the quantity that maximizes profit
Find the corresponding price and profit levels
A friend has just started up her own business. Her firm asks you how much to charge for her product to maximize profits. The demand schedule for it is given by the first two columns in the table below; its total costs are given in the third column. For each level of output, you can calculate total revenue, marginal revenue, average cost, and marginal cost. The profit-maximizing level of output can be found at the point where TR - TC is greatest, or where MR = MC, (or the last quantity where MR is still greater than MC.)
What is the profit-maximizing level of output for her product? 40
How much will she earn in profits? 80
Price Quantity TC TR? MR? MC?
$25.00 0 $130
$24.00 10 $275
$23.00 20 $435
$22.50 30 $610
$22.00 40 $800
$21.60 50 $1,005
$21.20 60 $1,225
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