Profit AnalysisUnendo, is a large computer game manufacturer.They have estimated that the demand function fortheir game "Star Wars Battlefront III" is as follows...STAR WAREBATTLEFRONTp = 86 - 0.05qwhere p is the price of a game and q is the number of game produced andsold per week.They estimate that their cost function in dollars is ...Clq) = 179 + 5000;where the fixed cost is $5000 and the marginal cost is $17 per gameUnendo wishes to maximize the weekly profit of producing and selling thegame.Find the maximum profit they can earn.(Round your answer to 2 decimal places, if necessary)

Answer to the question is as follows :

They estimate that their cost function in dollars is... C(q) = 179 + 5000; %3D where the fixed cost is $5000 and the marginal cost is $17 per game Unendo wishes to maximize the weekly profit of producing and selling the game. Find the maximum profit they can earn.

They estimate that their cost function in dollars is... C(q) = 179 + 5000; %3D where the fixed cost is $5000 and the marginal cost is $17 per game Unendo wishes to maximize the weekly profit of producing and selling the game. Find the maximum profit they can earn.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Related questions

Q: The State of Maryland is considering a requirement that for every ton of CO2 produced by out-…

Q: In order to produce a new product, a firm must lease equipment at a cost of $25,000 per year. The…

A: The highest variable cost for break even on this project can be calculated as follows.

Q: total profit is

A: Total Variable Cost = Average Variable Cost * Output Variable cost = $3 * 1000 = $3000 Total Fixed…

Q: The fixed cost is $150, the variable cost per unit $5, and the demand function for a the product is…

A: A demand function expresses the relationship between the quantity demanded and price. The fixed…

Q: A car part manufacturer has been asked to quote for 40 units of a new part. The following data are…

A: Learning curves uses the basis that the people and organizations get more efficient and productive…

Q: Wegmans Bakery produces cheesecake for sale. The bakery which operates 5 days per week and 52 weeks…

A: Production means goods that are produced from inputs to output by using raw material in them. It…

Q: Ahlia Co manufactures mobile phones. It has been extremely successful in the past, but the market…

A: (1) At a price of $110, the demand is 20,000 units At a price of $100, the demand is 22,000 units…

Q: Total fixed cost cannot be determined from the information provided. is equal to $50. is equal to…

A: The cost to any business is the expenditure incurred to a business firm during the production…

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: Here, average variable cost function is given as: AVC=96-2Q+0.05Q2 This function can be used to…

Q: The fixed costs for a company are $1,596.00 per month, and their variable cost per unit is $3.20.…

A: Fixed cost = 1596 MC = 3.20

Q: A manufacture has been selling 1000 television sets a week at $360 each. A market survey indicates…

A: Given information:- Total quantity sold- 1000 television sets per week Per unit price- $360 Rebate…

Q: A small plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so…

A: Costing is a critical component of running a business. We usually divide the cost of any…

Q: Cincinnati Pizza produced and sold 1,500 pizzas last month and had total variable ingredient costs…

A: The process of conversion of inputs being used into output that is used for consumption by…

Q: Exotic Metals, Inc., a leading manufacturer of beryllium, which is used in many electronic products,…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: A musical Disc is being produced by a music recording studio, and the company estimates that it will…

A: Answer: Given, Fixed cost (FC)=$100,000Variable cost per unit (VC)=$6.75 per unitPrice of disc…

Q: Azree an accountant, working for a foreign consultant firm and earning RM 78,000 per year is…

A: Explicit costs are the costs for a firm which it is paying out of its pocket, for example, payments…

Q: Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its…

A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…

Q: A manufacturer of Chocolate has a fixed cost of Tk.60000 and variable cost is Tk.7 per produced…

A: Given Information: Fixed cost (FC) = Tk. 60,000 Variable cost (VC) = Tk. 7Selling price (P) = Tk.…

Q: i need help

A: Since we only answer 1 question out of two, we’ll answer the first. Please resubmit the question and…

Q: A division of Ditton Industries manufactures a deluxe toaster oven. Management has determined that…

Q: A company has fixed costs of $540 and can produce 20 items for a total cost of $1,380. The company…

A: Profit is the difference between total revenue and total cost. Total cost is the expenditure that is…

Q: A local company assembling stereo radio cassette produces 300 units per month at a cost of ₱700 per…

A: Given that, A local company assembling stereo radio cassette produces 300 units per month at a cost…

Q: The delivered equipment cost for setting up a production and assembly line for two-way floating ball…

A: In this particular question, we are required to find cost estimate. One method of doing this is…

Q: a) Estimate from the graph i) the break-even points e) How would your answers for break-even points…

A: (a) The breakeven point is a situation where revenue earned by the firm is exactly equal to its cost…

Q: A privately owned summer camp for youngsters has the following data for a 15- :weeksession Charge…

A: Given: Charge per camper=$130 per week Fixed Costs=$42,000 per session Variable cost per camper=$70…

Q: A certain seed and fertilizer company compiled the following estimates for its operations. Capacity…

A: Given data: Sales $121,800 Total variable cost $51,156 Total cost 92,356…

Q: A small company produces organic cookies. When the price is $9.00 per dozen, the average daily sales…

A: TR=p*qTR=p*x (quantity is expressed in terms of x)TR=xpNow,TC=FC+VCTC=55+(0.70x) .....…

Q: In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The…

A: Break-even Point: It refers to a point at which firm earns only normal profit so, total revenue is…

Q: Disc Buddy, Inc. produces flash drives. The selling price is $8 per drive. The variable cost of…

Q: A manufacturer’s marginal cost (MC) function is given by: MC = 1000 √3?+12 Find the equation of…

A: Total cost is the summation of total fixed cost and total variable cost. Total cost function can be…

Q: Ace Manufacturing produces 1,000 hammers per day. The total fixed cost for the plant is $5,000 per…

A: Average fixed cost is the fixed cost divided by units of output. Average variable cost is the total…

Q: Given the following cost functions: TC=100+60Q-3Q2+0.1Q3 TC=100+ 60Q+3Q2 TC=100 + 60Q In each…

A: TC=100+60Q-3Q2+0.1Q3 AC=TC/Q= 100/Q+60-3Q+0.1Q2 In this case FC= 100 VC= 60Q-3Q2+0.1Q3 AVC=VC/Q=…

Q: Suppose a firm only has $100 thousand dollars to spend in purchasing iron I and copper C to…

A: A budget constraint is an economic word that refers to the total amount of products you can afford…

Q: In order to produce a new product, a firm must lease equipment at a cost of $50,000 per year. The…

A: The highest variable cost for break even on this project can be calculated as follows.

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: When talking about cost functions of a firm, it can be said that these coste function are…

Q: 3. Minimize the following total cost function: TC =Q3 – 10Q2 + 48Q + 46.

A: Given Total cost function TC=Q33-10Q2+48Q+46 ......(1) We will use application of…

Q: Given the following cost function: TC = 1500 + 15Q – 6Q2 + Q3 i. Determine the total fixed cost for…

A: Costs are the expenses that firms incur in the production activities. These are important for the…

Q: A company produces and sells a product and fixed costs of the company are 8500000 Baisa and variable…

A: The total cost function is the simple aggregate of the total fixed cost and the total variable cost…

Q: a company makes coffee mugs it costs them $8 per mug to make the mugs in addition to their daily…

A: The profit that the firm earns can be calculated by subtracting the total cost from the total…

Q: A profit making company wants to launch a new product. It observes that the fixed cost of the new…

A: Revenue is calculated by multiplying the number of units sold by the price per unit. Multiply the…

Q: Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Ahlia Co manufactures mobile phones. It has been extremely successful in the past, but the market…

A: The rational behaviour of any firm is to change its approach as the market dynamics change . If the…

Q: profit-maximizing rule

A: The Total Revenue (TR) is generated after selling all the output in the market. The Total Cost (TC)…

Q: A company has a linear total cost function and has determined that over the next three months it can…

A: Linear Cost function refers to the cost function with degree 1. For eg: (aQ + c) is a linear cost…

Q: ABC Company has a product that sells for $400 per unit and its variable cost per unit is $260.…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: As the owner of the dealerships, Oscar has the final say on pricing for each customer. Suppose that…

A: When a firm or owner charge different prices from the customers for the identical commodity is…

Question

Profit Analysis
Unendo, is a large computer game manufacturer.
They have estimated that the demand function for
their game "Star Wars Battlefront III" is as follows...
STAR WARE
BATTLEFRONT
p = 86 - 0.05q
where p is the price of a game and q is the number of game produced and
sold per week.
They estimate that their cost function in dollars is ...
Clq) = 179 + 5000;
where the fixed cost is $5000 and the marginal cost is $17 per game
Unendo wishes to maximize the weekly profit of producing and selling the
game.
Find the maximum profit they can earn.
(Round your answer to 2 decimal places, if necessary)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is die difference between accounting and economic profit?
You're company manufactures on large scale unit and it has been shown that marginal or variable cost are given by this function (92-2x)sh where xis the number of units of output per annum the fixed costs are 800000 annually, it has also been shown that the marginal revenue which is the gradient ot the total revenue is given by (112-2x) ... required determine by integration the total cost, the total revenue , the break even point of your company and the number of units of output that would maximise total revenue
Profit Analysis Unendo, is a large computer game manufacturer. They have estimated that the demand function for their game "Destiny 3" is as follows... p = 89 - 0.05g DESTIN Y V 3 where p is the price of a game and q is the number of game produced and sold per week. They estimate that their cost function in dollars is ... C(q) = 269 + 5000 where the fixed cost is $5000 and the marginal cost is $26 per game Unendo wishes to maximize the weekly profit of producing and selling the game. Find the number, q, of units that produces maximum profit.
Break-Even The total revenue function for Frenchdoor refrigerators is given by R = 550x dollars, andthe total cost function for this same product is givenby C = 10,000 + 30x + x2, where C is measured indollars. For both functions, the input x is the numberof refrigerators produced and sold.a. Form the profit function for the refrigerators fromthe two given functions. b. What is the profit when 18 refrigerators areproduced and sold?c. What is the profit when 32 refrigerators areproduced and sold?d. How many refrigerators must be sold to breakeven on this product?
Revenue and Cost The total weekly revenue functionfor a certain digital camera is given by R = 550xdollars, and the total weekly cost function for thecameras is C = 10,000 + 30x + x2dollars, where xis the number of cameras that are produced and sold.a. Find the profit function.b. Find the number of cameras that gives maximumprofit.c. Find the maximum possible profit.
A toy manufacturer makes miniature trucks. The pricep(in dollar) and the demandx(numberof miniature trucks) are related by the equation 6000−600p=x. The total cost for the sametoy manufacturer to producexminiature trucks can be modeled byC(x) = 8x+ 450.(a) (10 points) Express the pricepin terms of the demandx. Find the revenueR(x) if themanufacturer sellsxminiature trucks in a month and find the domain of this function.(b) (10 points) Graph the cost and revenue functions on the same coordinate system for 0≤x≤6000.(c) (10 points) What is the minimum number of trucks the toy manufacturer must sell tobreak even?(d) (10 points) FindP′(300) and interpret the result.(e) (10 points) What is the exact profit from the sale of the 301stminiature truck?
The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost perbarrel is $16. Price is related to demand according to the following linear equation.v -75,000 1,153.8pDevelop the nonlinear profit function for the brewery and determine the price that will max-imize profit, the optimal volume, and the maximum profit per year.
Question 1 A computer retailing company specializes in the sale of jump drives to community college students The demand function for jump drives is p=2x- +10=1000 dollars For the samne company the average cost function is given as. 2+36v-1600 - dollars Where pis the price n dollars and x represents units ofiourput. Determine the revenue function Determine the cost funetion Determine the profit function Find the price and output that will maximıze profir, Find the maximum profit 11 111) Iv) Ouestio n 2
show solution An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000+20.2D +0.0001D2. The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly profit attainable? and Over what range of production is profit possible? Express answers in whole numbers and write the numerical values only.
Mon Tue Wed Thu Fri Sat Sun Notes yue cost Functi ou and price per unit function of setling x vinit of calculators are c(x) =°0.1x+ 2x+500 and X= 200-p hspectively calculeate the ) revenue Functon ) Elaborate the of cakulators are produced. marginal cost when 5 units t) maximun protit
A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. Determinethe Marginal cost and interpret the results.
QUESTION 14 Suppose a busness owner operates her business out of a building that she owns. Also assume that there are ho malntenance or utlity costs associated with the building This means that it is costless for the business owner to use the buildng to operate the business O True O False QUESTION 15 if the 15th unit of output has a marginal cost of s29.50 and the average total cost of producing 14 units of output is 3021 what will happen to the average total cost is the 15th unit is produced? O Average Total Cost will fal. O Average Total Cost will increase O Average Totual Cost could increase or decrease deperiding on whar happets to variable cost O Average Total Cost could inorease or decrease depending.on what happens to fed cost