Assume a competitive firm faces a market price of $150, a cost curve of: and a marginal cost of: 1 C= + 6q + 1,500, MC = q² +6. What is the firm's profit maximizing output level? ☐ units. (round your answer to two decimal places)
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- The relationship between the firm's average variable, average total, and marginal cost curves above: Marginal Reveue = Price = US $ 2.50 ; a) Use the graph to find the Firm's profit-maximizing output. b) If the firm maximizes its profit, how much profit does it make (about)? Should the firm stay in business? c) Will other firms with costs the same as Firms enter the market? Explain.The graph below shows a particular firms marginal revenue (mr) marginal cost (mc) and average total cost (atc) curves, where the market is competitive. Suppose that a new management team is brought in and that this team is initially less concerned about maximizing profits than it is simply about making a profit. What range of production quantities will allow the firm to operate while earning a profit? Give you're answer by dragging the qmin to Qmax lines into their correct positions. The output will need to lie somewhere between those limits.For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price (Dollars per oven) 25.00 70.00 100.00 Quantity (Ovens) Total Revenue (Dollars) Fixed Cost (Dollars) 1,600,000 1,600,000 1,600,000 Variable Cost (Dollars) Profit (Dollars) If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $1,600,000 per day. In other words, if it shuts down, the firm would suffer losses of $1,600,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which it is optimal for the…
- The profit function for a firm is given by n(q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm operating in the short-run or the long-run? How do you know? b. What is the output that maximizes profit for the firm? c. What is the maximized level of profit? d. In Excel or other software, provide a graph of the above profit function to confirm your mathematical results found above. Use output amounts ranging from 1 to 200. Put profit on the vertical axis and output on the horizontal axis.Assume that a competitive firm has the total cost function: TC=1q3−40q2+880q+2000 T C = 1 q 3 - 40 q 2 + 880 q + 2000 Suppose the price of the firm's output (sold in integer units) is $550 per unit. Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution. How many units should the firm produce to maximize profit? Please specify your answer as an integer. What is the total profit at the optimal output level? Please specify your answer as an integer.Assume a competitive firm faces a market price of $120, and a cost curve of: C = 0.004q - + 25g + 750. Marginal cost (MC) equals MC =. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) Ass O stv 13 MacBook Air 80 DII esc F9 F3 F4 F5 F6 F7 F1 @ 23 $ % & 1 2 3 7 Q W E R Y tab S F K caps lock C V M shift fn control option command この つ つ エ T リ
- The company AffordableStuff sells cell phones. The marginal cost for each cell phone is given by the equation C(x) = 0.01x² – 3x + 229. a is the number of cell phones manufactured and sold. The marginal revenue function is R(x) = 429 – 2.x. Both C(x) and R(x) are given in dollars. a) Where do these curves intersect? What do those intersection points mean? b) Find the area between the curves, using end points that make sense. Round to the nearest cent. c) What does the area under the curve mean in this case?Q)Assume that a competitive firm has the total cost function: TC=1q^3−40q^2+740q+1600 Suppose the price of the firm's output (sold in integer units) is $650 per unit. Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution. A. How many units should the firm produce to maximize profit? B. What is the total profit at the optimal output level? Please specify your answer as an integer.= The short-run marginal and average cost curves for a firm are displayed below. When q = 2 and q = 5, the marginal cost is $3. When q 5, the average cost is $5. Assume the firm has a fixed cost of $5 and they can sell each unit of output at a price of $3 (p = 3). What is the profit- maximizing level of output for the firm in the short-run? Profit maximizing q = LA $ 5 3 2 5 MC AC q
- Suppose the firm achieves total revenue of $1,000 by selling 150 units while facing total costs of $900. If the firm produces and sells 151 units, its total revenue is $1,005, and its total costs are $950. Should the firm produce and sell the extra unit? Group of answer choices yes, since marginal profit is positive yes, since profits are positive no, since marginal profit is negative no, since marginal profit is positive You have recently learned that the company where you work is being sold for $1,000,000. The company's income statement indicates next year's profits of $30,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and the interest rate will remain constant at 7%, at what (constant) rate does the owner believe that profits will grow? (Hint: the price the owner was willing to pay is the present value of the firm's future cash flows) Group of answer choices 6% 5% 4% 4.5%p= 130 - 2Q. The firm's cost curve is C(Q) = 20 + 6Q. What is the profit-maximizing solution? The profit-maximizing quantity is O. (Round your answer to two decimal places.) The profit-maximizing price is $. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $]. (round your answer to two decimal places.) How does your answer change if C(Q) = 100 + 6Q? The increase in fixed cost O A. causes the firm to increase both the price and quantity, and profit increases. O B. has no effect on the equilibrium price and quantity, but profit will decrease. OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. OD. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases.Assume a competitive firm faces a market price of $100, a cost curve of: C = 0.25q + 50q + 1,600 and a marginal cost curve of: MC = 0.50g + 50. The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output level, what would be the profit? Its profit would be S. (round your answer to the nearest penny)