A bicycle manufacture faces a horizontal demand curve . the firm's total cost are given by the equation . TVC = 150Q - 20Q2 + Q3 where Q is the quantity. Below what price should the firm shut down operations?
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A bicycle manufacture faces a horizontal demand curve . the firm's total cost are given by the equation . TVC = 150Q - 20Q2 + Q3 where Q is the quantity.
Below what price should the firm shut down operations?
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- Below what price level would the firm shut-down?The short-run market demand and supply for Kente cloth are expressed as follows: Demand:P=40-0.25Q Supply: P=5+0.05Q Marginal cost: -20+4Q Find short run level of output.KK ltd produces goods for sale. From trend analysis the management accountant established a demand function of the product to be P=40−1.5q, where P is the unit selling price and q is the quantity in thousands. The enterprise has been producing under the cost TC=q2+10q+50, where TC is the total cost in thousands of cedis.Required3. At what quantity does the firm break even? 4. Calculate the price elasticity of demand at the point and explain your answer
- Mango Systems believes that demand for its pet e-mouse follows a linear demand equation: Quantity = 43,911 - 708* Price Mango's variable cost to produce one pet e-mouse is $23.50. Find the maximum total contribution margin (margin per unit times quantity sold) that Mango Systems can possibly achieve on its pet e-mouse. (Rounding: penny.) Your Answer:A local microbrewery has total costs of production given by the equation TC=500+10q+5q^2. This implies that the firm's marginal cost is given by the equation MC=10+10q (you do not need to be able to show this). The market demand for beer is given by the equation QD=105 – (1/2)*P. a) Write the equations showing the brewery's average total cost .Skinhead Ltd Co. has a competitive market and faces costs of production as follows: Quantity TFC (RM) | TVC (RM) TC (RM) ATC AFC AVC MC (RM) (RM) (RM) (RM) 100 1 100 50 2 100 70 3 100 90 4 100 140 5 100 200 100 360 (а) (b) Calculate the company's AFC, AVC, ATC, and MC at each level of production. The price for Skinhead product is RM50. Calculate the TR, MR, AVC, AFC and ATC for Skinhead. (c) (d) Calculate the profit for Skinhead at each level of production. From the information in 1(c), Skinhead seems is not able to generate profit at each level of production. The CEO decides to shut down operations. Explain whether the company should shut down operation or continue to run.
- The graph below shows the demand and cost conditions facing a price-setting firm. What is the maximum amount of profit the firm can earn?The market for smoothies is perfectly competitive and the market demand schedule is in the first two columns in the below table. Each of the 100 producers of smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What is the market price of a smoothie? $5.25 $4.25 $2.91 $2.20 Market demand schedule Quantity demanded (smoothies per hour) 1,000 Price (dollars per smoothie) 1.90 2.00 2.20 2.91 4.25 5.25 5.50 950 800 700 550 400 300 Output (smoothies per hour) 3 4 5 6 7 8 9 Producers of smoothies Costs Marginal cost (dollars per additional smoothie) 2.50 2.20 1.90 2.00 2.91 4.25 8.00 Average variable cost (dollars per smoothie) 4.00 3.53 3.24 3.00 2.91 3.00 Average total cost 3.33 7.33 6.03 5.24 4.67 4.34 4.25 4.44A local microbrewery has total costs of production given by the equation TC=500+10q+5q2. This implies that the firm's marginal cost is given by the equation MC=10+10q (you do not need to be able to show this). The market demand for beer is given by the equation QD=105 – (1/2)*P. a) Write the equations showing the brewery's average variable cost.
- A firm faces the following total cost curve in the short-term: TC₁=4+2Y;². The firm decided that it will not shutdown. The price is $28 per unit. Calculate the profit that the firm would make. Your Answer: AnswerA firm faces the following demand and cost functions: Q = 2000 - 4P TC = 2500+80Q -.75Q² +0³ Find the profit maximizing price and quantityBitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175? Can it be done in Excel?
