(b) The total revenue curve of a firm is R(q) = 40q – 12q² and itsq- 12.85q + 20 +30400where q is the firm's output.average cost A(q)Derive an expression C(q) for the firm's total cost function.Derive an expression II(q) for the firm's profit function.iii. Is the rate of change of profit increasing or decreasing when theouput level of the firm is 10 units?iv. Determine the level of output for which the firm's profit is maximizev. What is the firms's maximum profit?i.ii.

i). Firm’s total cost function:

Answered: (b) The total revenue curve of a firm…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

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1. Mariel runs an ice cream shop. Her short-run cost is given by 300 + is the number of ice cream cones she sells per day. + 3q where q 3000 (a) Find mathematical expressions for Mariel's marginal cost, average variable cost, and average total cost. (b) Sketch' Mariel's marginal cost, average variable cost, and average total cost. (c) Suppose the market price for ice cream cones is $3. How many ice cream cones will Mariel supply? What will her profits be? Identify your answers on the diagram and then compute the values mathematically. (d) Find the minimum market price such that Mariel will stay in business in the short-run, both on your diagram and mathematically. (e) Assume that Mariel can only run an ice cream shop of this size and in the long run must decide whether to operate or not. (In other words, assume that Mariel's LRAC curve is her short-run average total cost curve.) Identify the minimum market price such that Mariel will stay in business in the long-run on your diagram.…
he total revenue curve of a firm is R(q)=40q−12q and its average cost A(q)=130q−12.85q+20 +400q,where q is the firms output. i. Derive an expression C(q) for the firms total cost function. ii. Derive an expression Π(q) for the firms profit function. iii. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? iv. Determine the level of output for which the firms profit is maximized. v. What is the firmss maximum profit?
7. An analyst has found that Tom's Transmissions Company cost function is: C(x) = 40,000 + 500x – 0.55x² for, where x is the number of transmissions. a) Determine the marginal Cost function C'(x). b) Determine when the Cost function is maximized. c) Determine the marginal cost function at the 100th item proe Explain significance of the marginal cost at this point. ed and sold. d) Determine the cost difference between 101st and 100th boat ( C(101) - C(100)). Is this value the same or different from the marginal cost from part c? Explain.
The graph of the total profit P(x) (in dollars) from the sale of x cordless electric screwdrivers is shown to the right. 25,000 (A) Write a brief verbal description of the graph of the marginal profit function y = P'(x), including a discussion of any x intercepts. -300 (B) Sketch a possible graph of y = P'(x). 55,000 (A) On what interval(s) is the marginal profit function P'(x) positive? Select the correct choice below and, if necessary, fill in the answer box to complete your choice. A. (Type your answer using interval notation. Use a comma to separate answers as needed.) B. There is no solution.
Could you show the profit and loss on the graph. Furthermore, the figures for cost you posted were incorrect as they are not dropdown options.
X 1 ences If the price of oats is $3.0 per kilo, calculate the total revenue and the total profit (or loss) at the quantities shown in below table. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Leave no cells blank - be certain to enter "0" wherever required. Mc Graw Hill Quantity (kilos) Total revenue Total cost Total profit $ 600 1800 $1,900 700 2100 $2,000 $ 800 2400 $2,400
If a firm has an accounting profit it must have an economic profit. True O False
Consider total cost and total revenue given in the following table: TABLE IN IMAGE Calculate profit for each quantity. How much should the firm produce to maximize profit?(ii) Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points betweenwhole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2½.) At what quantitydo these curves cross? How does this relate to your answer to part (a)?(iii) Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in along-run equilibrium? (8.75)

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