Maximizing Profit and Production Answer the following: What is the profit equation? What are the values of X₁ and x2 that maximize profit? What is the maximum profit? What are the values of X₁ and x₂ that maximize production? What is the maximum production? - Q = 10 + 2x₁ - .5x² + 8x2 − .2x² C = 2x₁ + 4x₂ P = 40, FC = 150

8. siuppose that the manager of a firm operating in a competitive market has estimated the firm's average variable cost function to be: AVC= 18-0.3Q Total fixed cost is $60 and the forecasted price of the firm's product is $12. 79 a. What is the corresponding marginal cost function? b. At what output is AVC at its minimum? C. How much outputs should the firm produce? d. How much profit or loss will the firm earn?,

A movie theater shows films for a community of 10000 people. Right now, the price per ticket is $17.50. In the past, when they increased or decreased the price per ticket, they discovered that for every dollar (or fraction) that the price was increased or decreased, the attendance decreased or increased proportionally by 200 people. The theater owner pays the Film Distribution Company $10 (incremental cost) in royalties per person whoviews the film. Find a. The willingness to pay distribution of the movie goers. b. The average price they would be willing to pay. c. The price per ticket that maximizes revenue. d. Should the theater owner increase or decrease the price per ticket if she wants to maximize contribution? e. Find the consumer surplus if the tickets are priced at the price that maximizes contribution. Please complete in excel showing formulas on how it was completed

What is the optimal output when the fixed cost of output is $150? The following table shows the quantity and MC at different levels of fixed costs. Use the following table to answer the next four questions. The price of output is given as $50. Q 0 1 2 3 4 5 6 7 8 9 10 a. 1 unit b. 7units MC c. 9 units d. 10 units 50 28 20 14 18 20 22 38 45 55 C (FC=100) C (FC = $150) C (FC = $180) 100 150 180 150 200 230 178 228 198 248 212 262 230 280 250 300 322 360 405 460 272 310 355 410 258 278 292 310 330 352 390 435 490

Microeconomics The table below represents a firm's profit for producing and selling candles.  Assume that if a firm would have the same profit at two different levels of output, then the firm would choose the greater level of output. Assume that the only levels of output that the firm can produce are the levels of output given in the table. At what level of output does the firm maximize profits?    Quantity Total Cost Marginal Cost Total Revenue Marginal Revenue 0 $20 - $0 - 15 $60 $2.67 $75 $5 30 $110 $3.33 $150 $5 45 $170 $4.00 $225 $5 60 $245 $5.00 $300 $5 75 $340 $6.33 $375 $5

A dairy business jointly produces butter and cheese from a "fixed" amount of milk as shown in the table below. The price of butter per pound is $0.5 and the price of cheese per pound is $2. According to the table, the value of (D) is Cheese gained (in pounds) Profit gained from increased Butter forgone (in pounds) Profit lost from decreased production of cheese production of butter 1 1 1 1 1 a. $4* Ob. $1 C. $2 d. $0.5 (A) (B) 2 3 4 5 6 (C) (D) (E)

For each of the following events identify which of the determinates of demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Why? A stock market crash lowers people’s wealth. Batelco increases the prices of mobile services. Diminishing returns mean rising costs while economies of scale mean falling costs. Therefore, a firm cannot be facing both diminishing returns and economies of scale. Do you agree? Why or why not?

The table below presents the production quantity, total revenue, and total cost of a company in its production process. Using the Excel program, you make a graph that represents the total income and total cost. Determines the level of economic gain or loss for eadch production level. Identifies the point where the gain is maximized. Identifies which of the four market structures studied this example belongs to. Explain your answer in a paragraph of at least five sentences. Quantities in production Total income Total cost 0. 0. 27.23 1 36 55.69 21 72 81.68 3. 108 105.19 144 123.75 180 141.08 216 155.93 252 174.49 8. 288 198.00 9. 324 226.48 10 360 259.88 396 303.19 11 12 432 371.25 13 468 445.50 504 536.25 14 15 540 605.00 OFocus 5:48 AM ds English (United States) ) G ESP 2/23/202 4. 5.

If a Prof leaves their $100,000 per year job to start a business that earns annual revenue $400,000, and has annual labour and rental costs of $200,000, the economic profit of the business is $200,000. True or false and explain why. Use graphs if needed.

Bonus Question 4 1 A firm makes three products, in quantities X, Y and Z. It wishes to maximize its profit function: x=8X+16Y+4Z-0.8X2-0.8Y2-2² i) However, in order to satisfy customer orders, it must produce a total of 24 items which are either product X or product Y. Show how many of each of its three products it should produce and find the profit it makes.