6. The total cost incurred by a company that produce three kinds of goods is reflected by the equation: TC = 0.50x: +Xb- +0.75xc² + 2XaXb+ 3xbXc + XaXc + 9,187.50. While the demand function for each item is Pa=352-4Xa, Pb-560-5Xb, and Pa=355-3Xc. If the company want maximum profit. Calculate: •Total production ofeach item • Selling price per unit of each item • The amount of the maximum profit

6. The total cost incurred by a company that produce three kinds of goods is reflected by the equation: TC = 0.50x: +Xb- +0.75xc² + 2XaXb+ 3xbXc + XaXc + 9,187.50. While the demand function for each item is Pa=352-4Xa, Pb-560-5Xb, and Pa=355-3Xc. If the company want maximum profit. Calculate: •Total production ofeach item • Selling price per unit of each item • The amount of the maximum profit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Given the supply - demand function of printers in Vietnam as follows: Sx = -20000 + 250P Dx 160000-350P Knowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece. a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case? b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam. c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?
A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. 1. What is the price function of demand of the firm? 2. What is the total revenue function of the firm? 3. At what production output should the firm produce to maximize its total revenue?
A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. REQUIRED: A. What is the total revenue function of the firm? (Use the variable Q for the quantity and the variable TR for the total revenue B. What is the price function of demand of the firm? C. How much would be the maximum total revenue of the firm? D. At what price should the firm sell its product to maximize its total revenue? F. What is the marginal revenue function of the firm? (Use the variable Q for the quantity and the variable MR for the marginal revenue G. At what production output should the firm produce to maximize its total revenue? H. What is the demand function of the firm? (Use the variable Q for the quantity demanded and the variable P for the price
A manufacturer knows that: His TR is given by Revenue = 23Q – Q2 /4 His total cost of production is; Cost = 36 + 2Q + 0.1Q2 Where Q is the weekly production in thousands a) Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR) b) How do you think Economists’ would define ‘Marginal Cost’? Derive an expression for marginal Cost (MC) and at what output will make marginal Revenue equal Marginal cost? c) Find the total profit and the value of Q that maximizes profit
BigSwaba Corp produces virus home test kits which it sells in the market. It pays a marketing company to post Instagram images of people using the kits in the comfort of their own homes. The demand for the kits and cost of production are as follows: 1 1 Cost: C=200+=q´ +m 1/2 Demand: p=48+m/: Where m is the firm's marketing expenditure. Assume the CEO of BigSwaba asks you to help the company maximize profit. а. How many kits should the company sell and at what price? b. What is the demand elasticity at this output level? C. What should their marketing budget be? Assume the CEO of BigSwaba realizes her bonus will determined not by profits, but by the firm's revenue. Maintaining the same marketing budget as in part a: d. What quantity should the firm produce to maximize revenue?
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
4. Windies Cricket manufactures Windies supporter jerseys. The quantity q, of these jerseys demanded weekly is related to the wholesale price per jersey p, by the following equation: p=-0.006q+15 The weekly total cost incurred by Windies Cricket for producing q jerseys is: C(q) = 38q0.02q² + 30,000 a. Determine an expression to represent the weekly Revenue function. b. Determine an expression to represent the weekly Profit function. c. Calculate the weekly Revenue when ten dozen jerseys are produced and sold.
Suppose the demand for a product X produced by a company AAA is given by the following function: QX = 2000 - 250*PX. At what price per item of the product X (EUR) can this copmany maximize its total revenues? Fill in the Table gaps: Demand function Price function Total Revenue (EUR) Marginal Revenue (EUR) Quantity Price per product (EUR) Q = 2000 - 250P P = ? TR = Q*P MR = dTR/dQ = 0 Q = ? P = (2000 - Q)/250 250P = 2000 - Q TR = Q*(2000 - Q)/250 MR = 8 - 2*Q/250 Q/125 = 8 P = (2000 - 1000)/250 P = (2000 - Q)/250 TR = 8*Q - Q^2/250 8 - Q/125 = 0 Q = 1000 P = 4 Alternative solution Demand function Total Revenue (EUR) Marginal Revenue (EUR) Price per product (EUR) Q = 2000 - 250P TR = Q*P MR = dTR/dP = 0 2000 - 500*P = 0 TR = (2000 - 250P)*P MR = 2000 - 2*250*P 500*P = 2000 TR = 2000P - 250P^2 MR = 2000 - 500*P P = 4
K Given the input-output matrix below, find the output matrix if final demand changes to 400 for water, 180 for electric power, and 700 for agriculture. Industry: Water Electric Power Agriculture Other Water 120 120 240 720 The output matrix is X = (Round to two decimal places as needed.) Industry Electric Power 400 200 100 300 8 Agriculture Final Demand 180 240 120 60 260 170 500
You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows: where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50. Also that your estimated supply function for cowpea is as follows: QS = -25 + 3.5PC -1.5Pf – 0.5Pg + 0.25R Where Qs is the quantity supplied of cowpea in bags, Pc and Pg are as defined above, Pf is the price of fertilizer per bag, R is the amount of rainfall (in inches). If Pf = GH¢10, R= 40 inches and Pg= GH¢31.00 Find the resulting supply function for cowpea and determine the equilibrium price and quantity.…
A manufacturer knows that: His TR is given by Revenue = 23Q – Q2 His total cost of production is; Cost = 36 + 2Q + 0.1Q2 Where Q is the weekly production in thousands a) Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR) b) How do you think Economists’ would define ‘Marginal Cost’? Derive an expression for marginal Cost (MC) c) What output will make marginal Revenue equal Marginal cost?
The total revenue function of a good is given by TR=100 Q - Q2 If the current demand is 40. The estimated change in the value of TR due to a 3 unit decrease in Q is: a. 40 b. 60 c. - 60 d. - 40