Consider the following model of a firm. The firm can sell any number of units at the constant price, p, The marginal cost of production is given by MC = c + dq. If the technical parameters of the model are c=5 and d=2 and the price, p=£50, What is the maximum profit this firm can make? a. £506.25 b. £1125 c. £22.5 d. £618.75
Q: In the short run, given a market price equal to $15 per jumpsuit, the firm should produce a daily…
A: A market with perfect competition is an idealized structure where a large number of sellers and…
Q: Suppose the domestic price of wheat is $3.50 per bushel in Canada, while the world price is $4.00…
A: Free trade refers to trade that is not restricted by the government through tariffs or non-tariff…
Q: Marissa is on vacation in Mexico and buys a bottle of vanilla paste for about half the price she…
A: The answer is 3. Price discrimination.
Q: Use the analysis for the market for loanable funds diagrams to examine and explain both in words and…
A: The loanable funds market shows the market for all the savers and all the borrowers.The borrowers…
Q: When the price of salad was $5, a cafeteria sold 50 packets of salad dressing a day at $0.50 per…
A: The core of the provided information is the elasticity of demand. Therefore, the PED is calculated…
Q: 1. Assume the Standard Toy Company negotiates a loan for $5,000 from the Metro Bank and receives a…
A: The issue you raised has to do with monetary policy and macroeconomics. It covers topics like the…
Q: The following is a table of two countries showing labor cost to produce Good A to Good J; A B C D…
A: Comparative Advantage:When a country can produce goods at lower opportunity costs than another,…
Q: The following graph illustrates the demand and marginal revenue curve (D=MR) of a perfectly…
A: A firm operates under Perfect Competition.Quantity produced by the firm = 70 unitsAverage Variable…
Q: 3) Christine recently earned a promotion at work, raising her income by 40%. As a result, she now…
A: Elasticity is important in economics because it assesses how sensitive the quantity demanded or…
Q: Use the following figure showing the domestic demand and supply curves for product B in a…
A: Consumer surplus is the area below the demand curve and above the equilibrium price level.Producer…
Q: A consumer derives all of his utility from a single good; he devotes his entire income $10 to…
A: The concept of Equivalent Variation (EV) measures the change in income required to maintain a…
Q: Explain the forces surrounding defense and research spending in the US. How would you change it to…
A: The issue of defense and research spending in the US is complicated and involves many factors,…
Q: Consider a market where: Consumer surplus is 250 Producer surplus is 125. If both consumer surplus…
A: Surplus refers to the situation in the market when quantity supplied by the producer exceeds the…
Q: If Janet expects interest rates to rise in the near future, she will probably be willing to Select…
A: The bond market holds a crucial position within the economy by facilitating capital-raising for…
Q: Figure 4-19 The diagram below pertains to the demand for turkey in the United States. ↑price DB O x…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: 2/ The cities of Francistown and Nalady are five miles apart. Francistown enacts a rent control law…
A: Government-imposed rules designed to restrict the prices landlords may charge for rental units are…
Q: TOTAL PROFITS UP OR DOWN? Kiran's Kandles sells a bathroom candle set for $37.25. The variable cost…
A: The price elasticity of demand is used to measure the change in demand when the prices change of the…
Q: ___________________ is a new version of Utilitarianism that is based on what set of rules is…
A: Maximizing happiness and well-being for everyone is at the core of utilitarianism's moral and…
Q: Refer to the graph below. Assume that the economy is in initial equilibrium where AS₁ intersects…
A: **AS** denotes "Aggregate Supply." The entire amount of goods and services that all businesses in an…
Q: Which of the following cost functions exhibits economies of scope when three (3) units of good one…
A: Economies of scale are a term used in economics to describe the cost benefits or efficiency…
Q: the figure above, when the price falls from $8 to $7, total revenue A. decreases from $210 to $120…
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: Suppose you run the following regression: outcome=alpha0 + alpha1*female + alpha2*married + epsilon.…
A: The objective of the question is to find the estimated outcome for married respondents who are not…
Q: Suppose a Cobb-Douglas Production function is given by the function: P(L, K) = 22L0.4K0.6…
A: Production FunctionP(L,K) = 22 L0.4 K0.6Cost FunctionC(L,K) = 500L + 200Kwhere,L = units of labor…
Q: Review Question 12-01 A monopolistically competitive firm gets a massive amount of free advertising…
A: The monopolistic competition has many firms that sell differentiated products in the market. These…
Q: The concept of marginal utility: can only be applied to situations in which individuals can choose…
A: Analyzing consumer behavior and resource allocation can be done using marginal utility. The concept…
Q: Suppose you run the following regression: outcome=alpha0 + alpha1*female + alpha2*married + epsilon.…
A: The objective of the question is to calculate the estimated outcome for married females using the…
Q: You and your college roommate eat three packages of Ramen noodles each week. After graduation last…
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: Use the graph below to answer the following question: P4 P3 P2 P1 Price 102 03 04 Q5 zero economic…
A: Perfect competition is a market structure in which there are many buyers and sellers, all selling an…
Q: Machine X has an intial cost of $10,000. It is expected to last 12 years, to cost $200 per year to…
A: The annual cost of owning and sustaining an asset is known as its equivalent annual cost (EAC),…
Q: 1. Working with Numbers and Graphs Q1 Suppose the marginal costs of reading are constant at $5 per…
A: Marginal benefit refers to the additional satisfaction or utility gained from consuming one more…
Q: Assume that the supply of gasoline is relatively inelastic and the supply of wheat is relatively…
A: Market dynamics refer to the dynamic interplay of supply and demand, price changes, and customer…
Q: The graph to the right depicts the average cost curves and the marginal cost curve for a typical…
A: Perfect competition is a type of market where there are very large number of firms,which have no…
Q: FILL IN THE BLANKS The government utilizes fiscal policies to stimulate aggregate demand and reduce…
A: This can be defined as a situation In which the person is actively finding a job and has have…
Q: What happens to the original budget line if the price of good ? doubled? (i.e., Will there be a…
A: A Budget Line is a line of constraint for a consumer. It constrains consumers from consuming and…
Q: The value of the ideal standard deviation is (two decimal places, no zeroes anywhere) 0.5/
A: A statistical tool used to quantify the degree of variation or dispersion in a set of data values is…
Q: 1000 900 800 PRICE 700 600 500 400 300 200 100 MC Demand MR 5 10 15 20 25 30 35 40 45 50 55 60…
A: A monopolistically competitive market is a place for firms to make their goods or products different…
Q: Consider the following model of a firm. The firm can sell any number of units at the constant price,…
A: Profit for a firm is determined by the difference between the total revenue it earns from selling…
Q: long-run? P SRAS1 going
A: The issue you presented has to do with macroeconomics, more especially with the examination of long-…
Q: Andre has $13.50 a week to spend on tortilla chips and pretzels. The price of a bag of tortilla…
A: The issue you presented is related to microeconomics, with a particular emphasis on consumer choices…
Q: Consider the local cable company, a natural monopoly. The following graph shows the monthly demand…
A: A monopoly is a market structure characterized by a single seller or producer dominating the entire…
Q: They now have a very prosperous year because Tanya is Expecting Twin Girls. For Baby "A" Tanya's…
A: certainly! Let's calculate the future values of Baby "A" and Baby "B" accounts step by step and…
Q: PRICE 16 14 12 10 00 6 4 Graph (a) Demand 1 2 3 45 QUANTITY Supply (Refer to Graph (a)) Total…
A: A consumer purchases a product and pays an amount which is often less than the amount that they are…
Q: The firm will earn economic profit of $_
A: Economic profit is a concept in economics that measures the difference between the total revenue…
Q: draw a graph of a product without any externality
A: An adverse effect or result of a certain economic operation or transaction that has an impact on…
Q: Suppose you are the president of a hypothetical economy. You have to fix healthcare and run the…
A: Macroeconomic analysis is the bedrock of modern economics, giving vital information about a…
Q: Planned Aggregate Expenditure (PAE) Y₁ Y₂ Y3 Actual Aggregate Expenditure (Output or GDP, Y) If…
A: PAE is a concept that shows the total amount of spending that households, businesses, government,…
Q: Price GF E D B A Quantity S₁ S D Ad Refer to the provided supply and demand graph for a product. In…
A: A negative externality is a cost imposed by an economic activity on a third party who is not…
Q: Price P S P 0 P. A d H B E I с D FG J S S + Subsidy D Quantity
A: The issue you raised has to do with microeconomics, more especially with how an excise subsidy…
Q: In 2014, the adult population was 105 million, the number of employed was 65 million, and the number…
A: Labor force is sum of employed and unemployed workers. i.e., Labor force = Employed +…
Q: Interest rates in Eturia are shown in the following table. 2013 2014 2015 Nominal Interest Rate 8%…
A: The real interest rate is inflation-adjusted nominal interest rate. Adding the inflation rate to the…
Consider the following model of a firm. The firm can sell any number of units at the constant
a. £506.25
b. £1125
c. £22.5
d. £618.75
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Consider the following model of a firm. The firm can sell any number of units at the constant price, p, The marginal cost of production is given by MC = c + dq. If the technical parameters of the model are c=5 and d=2 and the price, p=£50, how much profit will the firm make if it produces and sells 17 units of the good/ a. £11 b. -£374 c. £476 d. £850PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC Average Variable Cost AVC Average Fixed Cost AFC Given above costs can you determine what will be the firm’s production in Stage 1? What is the breakeven price and breakeven quantity for this firm? What is the shutdown price and quantity for this firm? Draw the firm’s costs in a graph as per your determination in (a). Label the breakeven and shutdown price and quantity using information in (b) and (c) above. Given the market price of Pak$ 50 how many units should the firm produce? how many firms are competing in this market in short-run? How many firms will be in the industry in the long-run? How do you interpret the profit or loss condition of PakPerfect? Use a two-panel graph of the Market and…AMCO is a firm producing tables in Spain. It has a fixed cost of 100$ and a cost per unit of production of 2$. The demand function for a table is given by: P = 60 - 4Q 1. Find the equations of TR and TC. 2. Write down the equation of the profit. 3. Find Qwhen TR = 0 (x-intercept/roots). 4. Find Qwhen TR is a maximum. 5. Deduce the maximum total revenue (TR max).
- A major software developer has estimated the demand for its new personal finance software package to be Q=1,000,000P-2 while the total cost of the package is C = 10,000+ 25Q. If this firm wishes to maximize profit, what percentage markup should it place on this product where percentage markup is defined as 100*(sale price - marginal cost)/marginal cost? 4. a. b. C. d. e. ANS: 90% 100% 20% 40% 250%PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. a- Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC Average Variable Cost AVC Average Fixed Cost AFC b- Given above costs can you determine what will be the firm’s production in Stage 1? c- What is the breakeven price and breakeven quantity for this firm?The Lead Zeppelin Company produces powered and steerable lighter-than-air craft. The company’s airships are specially lined and are therefore safer than normal dirigibles. The table below shows the weekly production of dirigibles, along with the associated Average Cost and Total Revenue figures (the Average Cost and Total Revenue figures are actually in thousands of dollars, so the $15 represents $15,000, but we have left off the zeros to save space). Quantity Average Cost Total Cost Total Revenue 0 -- 0 $0 1 $15 15 $10 2 $9 18 $20 3 $8 24 $30 4 $8.50 34 $40 5 $9 45 $50 6 $10 60 $60 7 $12 84 $70 The Lead Zeppelin Company has decided that it will produce at least 1 dirigible. Now the question becomes, how many more dirigibles should it produce to make as much profit as possible? Use the profit-maximizing rule to explain how many dirigibles the Lead Zeppelin Company should produce to…
- The fast answer is best . Thank you. Like like like. The manufacturer of smart printers is trying to decide what price to set for its product. The demand and cost function are assumed to be as follows: P = 80 -2Q TC= 160 +50Q-1.5Q ²a. What price should the company charge if it wants to maximize its profit in the short run? What is the optimal quantity for the printer following this optimal price? b. What price should it charge if it wants to maximize its revenue in the short run? What is the optimal quantity for the printer under this price? What will be the maximum revenue?34 A firm with two plants, A and B, has the following estimated demand and marginal cost functions: Qd=120 - 10P MCA = 4 + (1/5) QA MCB=6+ (1/10) QB What is the firm's total marginal cost function? Multiple Choice MC = 24+ (1/50)Q MC = 10 + (3/15) Q MC = (80 / 15) + (1/15) Q MC = 2 + (1/10)Q OAssume a competitive firm faces a market price of $100, a cost curve of: C = 0.25q + 50q + 1,600 and a marginal cost curve of: MC = 0.50g + 50. The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output level, what would be the profit? Its profit would be S. (round your answer to the nearest penny)
- Round off your final answer to whole #. A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5,000 p=47 + -forD>1 D D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $39 per unit. What is the number of units that should be produced and sold each month to maximize profit?Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 10 + 0.10x + 0.001x² dollars. (a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.] R'(x) %3D P'(x) (b) Compute the revenue and profit, and also the marginal revenue and profit, if you have produced and sold 500 copies of the latest edition. revenue 2$ profit 2$ marginal revenue $ per additional copy marginal profit $ per additional copy Interpret the results. The approximate loss from the sale of the 501st copy is $ (c) For which value of x is the marginal profit zero? X = copies Interpret your answer. The graph of the profit function is a parabola with a vertex at x = , so the profit is at a maximum when you produce and sell copies.Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units pe r year. Your marginal cost is P10 per chip up to capacity. You have a fixed cost of P10,000 if production is positive and P0 if you shut down. What are your profit-maximizing levels of production and profit if the market price is (A) P5 per chip, (B), P15 per chip, and (C) P25 per chip? For case (B), explain why production is positive even though profits are negative.