Q.1. A financial department of a company has arrived at the following Cost and price function. R(x)=189.6–10x² C(x)=312+39.4x Both have domain 1
Q: A two-product firm faces the following demand and cost functions: Qi = 40 – 2P, - P2 (0) Find the…
A:
Q: A firm with two plants, A and B, has the following estimated demand and marginal cost functions: Qd…
A: Marginal cost is the additional cost incurred to produce an additional unit of output .
Q: In economics, a firm earns a normal profit when its total revenue equals its total economic costs.…
A: In economics, a firm enjoys normal profit when the difference between the total revenue and the…
Q: The profit maximizing condition for a purely competitive firm is when... Group of answer choices…
A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…
Q: For a company with (inverse) demand function P = 4,510 - 55Q and cost function C = 88,000 + 660Q,…
A: P=4510-55Q C=88000+660Q Total Revenue=PQ TR=(4510-55Q)Q TR=4510Q-55Q2 Maximizing TR :…
Q: Knitting Mills sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year…
A: We have, Q = 20,000 pairs a year, P = $10, FC = $60,000, VC = $120,000. 10 % increase in output…
Q: Given the total revenue and the total cost function in # 18, the corresponding marginal revenue is…
A: The firms, and businesses in the market tend to operate as sellers. These firms make various goods,…
Q: The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q…
A: Total revenue, R (q) = 40q - 12q2 Average cost, A(q) = 1/30q2 - 12.85q +20 + 400/q
Q: An online streaming company, Netflicks, has invested $100,000 in servers. The resale value of those…
A: The online streaming industry is an competitive industry. The profit maximizing condition in the…
Q: Consider the total revenue function, TR = 28 + 7Q + 7Q^2 Find the marginal revenue (MR) at Q= 15.…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You are the manager of a bakery that produces and packages bran buns. According to the new research,…
A: Inverse demand function, P = 4 – 0.5Q Cost function, C(Q) = 1Q
Q: A firm that sells e-books - books in digital form downloadable from the Internet - sells all…
A: Given: Maximum annual profit of $45,000 when it sells 20,000 copies Profit per copy = 45000/20000 =…
Q: Given the following total revenue (TR) and total cost (TC) functions for a firm, write down the…
A: Answer: Profit = TR - TC At Q=20 the profit will be maximum.
Q: A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2 Q…
A: Q = 30 − P P = 30-QATC =7/Q− 6 +1/2 Q Total Revenue (TR) = PXQ = 30Q-Q2 Total Cost (TC) = ATCXQ TC…
Q: A two - product firm faces the following demand and cost functions: Q1 = 40 - 2P1 - P2 Q2 = 35…
A: We have demand function in terms of price, Q1 = 40 – 2P1 – P2 Q2 = 35- P1 – P2 We need to find the…
Q: A firm produces two goods in pure competition and has the following total revenue and total cost…
A: Given: The total revenue function is TR = P1Q1 + P2Q2 The total cost function is TC = 2Q12 + Q1Q2…
Q: A firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 1,000 + 40Q, respectively.…
A: According to question given that price(demand ) equation and total cost equation, using both we can…
Q: Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function 4? = 35…
A: Given: Demand function: 4Q = 35 − 0.5P or, P = 70 - 8Q Fixed cost (FC) = GH¢ 80 Average variable…
Q: A firm has the following total-cost and demand functions: C= Q²- 70? + 111Q + 50 Q= 100 – P Write…
A: Q = 100 - P P = 100 - Q C = 1/3 Q3 - 7Q2 + 111Q + 50 Total revenue = Price Q
Q: Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750 ml size is…
A: Total revenue (TR) function can be obtained by using the following formula.
Q: The total cost of a firm is TC(Q)=4Q2+6Q+34. Accordingly, its marginal cost is 2*4*Q+6 when its…
A: Answer to the question is as follows :
Q: Dalahla Company Limited, focusing on producing tooth paste (n units) has a demand function 4Q = 35 –…
A:
Q: Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function 4Q = 35…
A: The demand function can be represented as follows. Total revenue can be calculated as follows.…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q…
A: R(q) = 40q − 12q2 A(q) = 1/30 q2 − 12.85q + 20 + 400/q Total cost = A(q) * q
Q: PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and…
A:
Q: Pretend that you are working for Del Monte in the area of canned vegetables and that Del Monte has a…
A: Answer -1 Types of decisions that would be taken with his system (1) Inventory Maintenance With…
Q: A new restaurant - Uovo - has just opened in West L.A. It is serving the upscale market, with truly…
A: The restaurant will maximize profit by producing at MR equals MC, charging the maximum price…
Q: "A profit maximizing firm seeks to produce at an output where its marginal revenue is equal to its…
A: Profit maximization: Profit maximizing firms produces and sells the goods at the point where the…
Q: The cost, in dollars, to produce x designer dog leashes is C(x) R(x) = 7x + 10, and the revenue…
A: Profit = TR - TC Where TR = Total Revenue TC = Total Cost Profit = -3x2 + 55x - 7x - 10 Profit =…
Q: A price-setting firm faces a demand curve described by the equation P = 100 - 5Q and its total…
A: TC = 12 + 30q MC = dTC/dQ = 30 P = 100 – 5q TR = P * q = (100 – 5q) * q = 100q – 5q2 MR = dTR/dQ =…
Q: Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Suppose a restaurant that is highly profitable during the summer months is unable to cover its total…
A: In the short run, a firm will have two types of cost: fixed cost and variable cost. Total variable…
Q: Assume a firm's marginal costs are increasing at its current level of output. If a firm's marginal…
A: Marginal costs are the costs that measure the change in the total cost of production when the…
Q: A manufacturer produces and sells a product with an inverse demand curve given by: P=800-2Q Product…
A:
Q: Consider the following price-demand function: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} (i) Sketch the…
A: Here, demand function is given as: P = 80 − 4Q, {Q/0 ≤ Q ≤ 10} and, cost function is given as: C =…
Q: marginal cost is
A: The Total revenue depicts the revenue generated by selling all the output. The Total cost depicts…
Q: oods in pure competition and has the following total revenue and total cost functions: TR = P1Q1 +…
A: Given: TR = P1Q1 + P2Q2 TC = 2Q12 + Q1Q2 +2Q22 Where, P1 = 12 and P2 = 18.
Q: Suppose a car firm's marginal revenue of selling a car is $2,100 and marginal cost of producing a…
A: Marginal cost is the additional cost incurred in order to produce one addition unit of output.
Q: Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output…
A: Price = 3 Average variable cost = variable cost/ output = 600/100 = 6 Since the price is below the…
Q: What is the profit-maximizing output level for a company that has demand function Q = 220 - 4P and…
A: The answer is given below
Q: A firm is jointly producing two products with variable proportions. If the price of one of the…
A: Profit maximization is the short run or long run process through which a firm might tend to…
Q: Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is…
A: Given: MC=q+35 (in ¢000) MR=560+22q−q2 (in ¢000)
Q: 1. Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml size…
A: i) To derive the expression for total revenue function: R(q)=P×QFor…
Q: Royersford Knitting Mills, Ltd., sells a line of women’s knit underwear. The firm now sells about…
A: Originally we have:Q=20,000P=$10FC=$60,000TVC=$120,000now as price reduced by 5% then new price will…
Q: AOF is the only firm selling beer around Isla Vitas, which has a beer fountain in the backyard so…
A: When a monopolist charges two different prices for the same good from two groups of consumers, then…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q…
A: total revenue (TR) is defined as the total quantity(q) of commodity produced multiplied with its…
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- The following relations describe monthly demand and supply for a computer support service catering to small businesses.Q D = 3,000 - 10PQ S = -1,000 + 10PA local newspaper currently has 84,000 subscribers at a quarterly charge of $30.Market research has suggested that if the owners raise the price to $32, they wouldlose 5,000 subscribers. Assuming that subscriptions are linearly related to theprice, what price should the newspaper charge for a quarterly subscription tomaximize their revenue?a) Find the cost function (Hint: find slope and use point-slope form to find thecost function) b) Find the revenue function c) Find the maximum revenue d) Find the profit functionyou are an accountant for a manufacterer of radios. the demand function for the tablets is p= 40-4x2 where x is the number of tablets produced in millions. it costs the company $15 to make a tablet. write an equation for the manufactures profit as a function of the number of tablets produced. the company currently produces 1 million tablets and makes a profit of $21000000, but you would like to scale up production a bit, what greater number of tablets could the company produce to yield the same profit
- Nick is planning on starting a mobile pizza oven. He is expecting his customers to spend $20 per pizza. It is estimated that the costs associated with the ingredients will be $5 per pizza. In addition, his fixed costs for renting the mobile oven is $150 per day. 1) How many pizzas does Nick need to sell to break-even per day? 2) If Nick wants to make a profit of $300 and sell 25 pizzas per day, calculate the price he should charge per pizza. 3) If Nick increases the price per pizza to the amount found in part (b) then explain the effect on the break-even number of pizzas sold. Assume the fixed costs and the variable costs remain unchanged. Do not re-calculate the break-even quantity, x, for this question however you may quote the break-even formula and contribution margin to aid your explanation.You are the CEO for a lightweight compasses manufacturer. The demandfunction for the lightweight compasses is given by p = 40 − 4q2where q is the number of lightweight compasses produced in millions.It costs the company $15 to make a lightweight compass.(i) Write an equation giving profit as a function of the number of lightweight compasses produced.Round off your final answer to whole #. A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5,000 p=47 + -forD>1 D D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $39 per unit. What is the number of units that should be produced and sold each month to maximize profit?
- Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. Note: Dashed drop lines will automatically extend to both axes. Select and drag the rectangles from the palette to the graph. To resize, select one of the points on the rectangle and move to the desired position. PRICE (Dollars per can) 4.00 3.50 3.00 2.50 2.00. A 1.50 1.00 0.50 0 MC 05 ·D-D AC MR 1.0 1.5 QUANTITY TH 2.0 25 D 30 3.5 40 Monopoly Outcome Profit Loss ? 30 tv N MacBook Pro Ⓒ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)? $ LAUse the price-demand equation below to find the revenue function. Sketch a graph of the revenue function, and indicate the regions of inelastic and elastic demand. x-f(p)%3D108-12p R(p) =]
- Suppose you own a tax preparation services company, with fixed costs of $3,000/month and marginal costs of $25/appt.If the price is $60/appt, 500 appointments would be sold. If the price is $50/appt, 760appointments would be sold. a.)Use these figures to calculate the price elasticity of demand for your services. b.)Calculate the monthly profits and profit margins (profit/revenue) associated with the price of $60/appt and $50/appt. c.)Given these calculations, what price should you charge for your services, $50/apptor $60/appt? ExplainNetflix is increasing its streaming service from $9.99 per month to $10.99 per month. Which is must be true? a) They will lose less than 5% of subscribers b) They will not lose any subs c) They will lose no more than 20% of their subs d) They will lose less than 10% of their subsQ1: Analytical part - 8% Best Orange Juice Company is located in Oman. The cost function for total orange juice production (x) is given by C(q) = 0.25x2. Their orange juice is demanded only in Muscat (Muscat demand is Xm- 100-2Pm) and Salalah (Salalah demand is X 100-4Ps). Therefore, the total demand is x-xm+ Xs. If the company can control the quantities supplied to each market, how many should it sell in each location to maximize total profits? What price would it charge in each location? Answer: