A price-setting firm faces a demand curve described by the equation P = 100 - 5Q and its total production costs are given by the equation TC = 12 + 30Q. With this revenue and cost information, if the firm aims to maximise total profits, it should set price P at:
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: Consider a wholesale electricity market with two types of generators: coal plants and natural gas…
A: 2 types of generators in a competitive market Type 1: Coal Plant Number of generators = 10 Capacity…
Q: A market that follows the price leadership of a barometric firm has the following demand function:…
A: Below is the given values: Demand function: Q = 1400 - 2PFollowe firms have MCf = 100 + 0.5QfMC of…
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: 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: TRUE of FALSE Cost- plus pricing is circular for the manufacturing industry in that demand must be…
A: Cost-plus is a pricing method which uses to secure margin by fixing mark-up. The manufacturing firm…
Q: Given the demand and total cost functions as P = 150 – 2Q and TC = 40 Find the profit maximization…
A:
Q: Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand function of the…
A: Monopoly will produce the output where MR=M and charges the price for its product from the demand…
Q: Suppose that the market equilibrium price for a routine service of a four-cylinder car is $270 and…
A: The equilibrium price = $270 Average variable costs = $300
Q: Film producer S costs c=20 to produce one film. B, a movie distributor, earns v=120 if the movie is…
A:
Q: A construction company has determined its price-demand function for a certain product is given by…
A: Answer: Given, Price-demand function, Px=200-0.5x Note: the equation for demand is given by C(x)…
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: If you are given the following total cost function and the demand equation as follows: TC = 40+ 50Q…
A: TC is the total cost which the firm occurred during the production which involves variable and fixed…
Q: A firm has the following revenue and cost functions: TR = 100 Q – 4Q2 TC = 300 +40 Q + 2Q2 Determine…
A: Given TR= 100Q-4Q2 TC= 300+40Q+2Q2 The condition for profit maximization is MR=MC MR is the…
Q: Assume you are the manager of a firm that produces a unique pair of rainbow shorts. Based on the…
A: Profit maximising condition brings the producer at equilibrium point where MC= MR .
Q: Define Q to be the level of output produced and sold, and assume that the company total cost…
A: The firms in every market are the sellers, suppliers, or the producers of goods, and services. The…
Q: A price-setting firm faces a downward-sloping demand curve described by the equation P = 100 - Q.…
A: Under a monopoly, there exists only one seller and a large number of buyers and products sold are…
Q: Industry demand is given by : P = 100-2Q The total cost for the individual firm of which there are…
A: cartel is the one of the characteristics in the oligopoly market , where they form cartel or cartel…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A: Profit maximization is that the short- or semipermanent method through that a corporation determines…
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: Cambrian Railways runs a daily container freight train between Cardiff and Birmingham. Its major…
A: Inverse Demand: P = 410-5Q Total Cost: TC = 3Q2 + 10Q – 100 where: P = unit selling price Q =…
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 profit maximizing firm produces a single product that it sells in two distinct markets 1 & 2. The…
A:
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 demand function for its output is p=400-0.5q. To maximize sales revenue,what price should be…
A: Given the general form of Demand Function: P = f(Q), Then the general form of Inverse Demand…
Q: A firm has the following revenue and cost functions. TR = 60 Q – Q2 TC = 1 2 Q2 +30 Q + 30 Determine…
A: Total business profits are maximum when the difference between business revenue and production cost…
Q: Dalahla Company Limited, focusing on producing tooth paste (n units) has a demand function 4Q = 35 –…
A:
Q: A firm's demand function is given by p 234 - 5q, where p and q denote the price and quantity,…
A: Given Demand function p=234-5q .....(1) Where p and q denote the price and quantity…
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: Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q, and market…
A: Since you have asked multiple part question, we will solve first three parts for you if you want…
Q: A company has determined that the price and the monthly demand of one of its products are related by…
A: The profit is maximized where the MR = MC.
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: The total revenue and cost functions of a firm are as follows, respectively: TR(Q) = 10Q – 1,5 Q2…
A: Given, Total revenue function, TR(Q) = 10Q-1.5Q2 The total cost function, TC(Q) =1.5Q2 The profit…
Q: Using a linear specification, you estimate your demand curve to equal Q=20-2P+10I, where • Q = the…
A: The profit is maximized where the marginal revenue is equal to the marginal cost of production.…
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: BUSINESS: Automobile Sales An automobile dealer is selling cars at a price of $12,000. The demand…
A: Demand= Desire+ ability + willingness to purchase.
Q: A firm faces a demand function (where q=quantity demanded and p=price): q = 200 – 2p and a total…
A: The firm would always result in maximizing profits by selling a quantity at a fixed price per unit…
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: A company is able to sell two products ,X and Y with demand function: PX=52-2X PY=20-3Y THE…
A: To determine the profit-maximizing levels of output for X and Y, and the level of profit, we must…
Q: A firm faces the following average revenue (demand) curve: P = 100 - 0.01Q where Q is weekly…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Management has at its disposal the following information: Demand (price) function: P =423– 4.5Q…
A: Given Information: Demand function: P=423-4.5Q Total cost function: C(Q)=220+90Q
Q: Jamie Co. has a patented disinfectant to clean the kitchen of restaurants. The market demand for her…
A: The demand function is given as: The price function can be represents as follows;
Q: Ex 3.1 Use the previous text. The general director must decide: 2000 units of product B is sold at…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: Explain the role of costs in pricing decisions and describe how various combinations of price, fixed…
A: The major costs in pricing decisions can be listed as follows: Fixed cost: Fixed costs are the costs…
Step by step
Solved in 2 steps
- ect of the utility commission's ruling on the profitability of the firm? 15 A company estimates that the demand for its product fluctuates with the price it charges. The demand function is q = 280,000 – 400p where q equals the number of units demanded and p equals the price in dollars. The total cost of producing q units of the product is estimated by the function C = 350,000 + 300q + 0.0015q? (a) Determine how many units q should be produçed in order to maximize annual profit. (b) What price should be charged? (c) What is the annual profit expected to equal? 16 Solve the previous exercise, using theThe 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.(a) A retail company has a marginal profit curve given by: MP =-2Q 2+ 160Q + 2145. Determine the level of production, or range of production at which the company will have: (i) Increasing returns (ii) Decreasing returns (iii) Negative returns (iv) Its maximum profit (b) A production process varies only with raw materials, as all other inputs are fixed. The cost of a shipment of 8kg of raw materials is fixed at $85. It takes 5kg of raw materials to create one item of output, Q. The marginal revenue for this production process is expressed by: MR = =Q 2 + 520 – 576. 2+52Q Determine the optimal amount of raw materials to be used in this production process. (c) A production process varies with both labour, L and raw materials, M. The production function is given: Q = 1.25L 0.38 +0.9M0.68 Current production level is Q= 800 items and marginal profit is given as a fixed $16.50. Determine what profit can be expected if: (i) Labour is increased by 25%. (ii) Both labour and raw materials are…
- 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?Pixie Arts and Graphics, a medium scale printing press business has determined the equation that describes the relationship of the price and demand of one of its products as Price=150 - 0.01•D (D as Demand per unit) for an annual printing of this product. The fixed costs annually = P50,000 and the variable cost = P40 per unit. Requirement: a. What is the maximum profit that can be earned? b. What is the unit price at this point of optimal demand if demand is not to be anticipated to exceed more than 6,000 units annually? Hint: Profit (loss) = total revenue – total costs = (aD – bD²) – (Cf + CyD)15 Suppose a company has fixed costs of $2100 and variable costs per unit of x + 1500 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 16 1600 1/64 (a) Find the break-even points. (Enter your answers as a comma-separated list.) -x dollars per unit. X = (b) Find the maximum revenue. $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find the maximum profit. $ (d) What price will maximize the profit? (Round your answer to the nearest cent.) $
- 2AAWO AC I4 17.1 REVENUE, COST, AND PROFIT APPLICATIONSITSO RSYHAHD 797 20 A firm sells each unit of a product for $50. The total cost of producing x (thousand) units is described by the function C(x) = 10 – 2.5x² + x³ where C(x) is measured in thousands of dollars. (a) Use the marginal approach to determine the profit-maximizing level of output. (6) What is total revenue at this level of output? Total cost? Total profit? 1 The profit function for a firm is -000Output TFC TVC TC MC ATC A 25 25 В 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 4th unit of output? 40 25 50 Cannot be determined.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
- ??????? ?(a) Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750mlsize is q = 4000 − 250p and his total cost function is C(q) = 500 + 0.2q.(i) Derive an expression, R(q) for Teddy J′s total revenue curve.(ii) Derive an expression, Π(q) for Teddy J′s profit function.(iii) Determine whether Teddy J′s profit is increasing or decreasing whenhe produces 5 hundred, 750ml bottles of dishwashing liquid.(iv) How many 750ml bottles of dishwashing liquid should Teddy J produceper month if he wishes to maximize his profits.(b) A firm has an average cost functionA(q) =125q+q216 − 4.where q is the firm′s output.(i) Determine the level of output for average costs are minimum.(ii) Hence determine the range of values for which average costs are decreasing.(iii) What part of the decreasing range is practically feasible?(iv) Write an equation for the total cost function.(v) Hence calculate the level of output for which total costs are minimum.The total profit equation for the firm is p =-500-25x-10x^2 -4xy-5y^2+15y ;x +y =100 .where x and y represents output levels.Us8ng substitution method determine the profit maximizing output levels for x and y .Q3. The management of a manufacturing company has the following information: Revenue function: R = 3600Q– 25Q² Profit-maximizing price is OMR 2100. al Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity. b\ Suggest a cost function which results in a maximum profit value to be between OMR (20000 and 60000), write the maximum profit value.
