P=21 - 0.7 Q price per kilo and Q is the kilos of coffee demanded and her total costs are given by TC = 18 + 12 Q + 0.3 Q² marginal revenue function of this firm? Use capital letters in your response (i.e. Q not q). marginal cost function of this firm? Use capital letters in your response (i.e. Q not q) 固助 e following best describes what the marginal cost means in words? cost Dalia will have to pay to produce another kilo of coffee and this cost is always the same. t of producing a given level of output. rage cost of all the output and it depends on the total level of output. at of producing more output. cost Dalia will have to pay to produce another kilo of coffee and it depends on the total level of output. kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make sure you y. decimal place (e.g. 2.3), she will produce AEkgs of coffee to maximize profits. ne decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly. of profit.
P=21 - 0.7 Q price per kilo and Q is the kilos of coffee demanded and her total costs are given by TC = 18 + 12 Q + 0.3 Q² marginal revenue function of this firm? Use capital letters in your response (i.e. Q not q). marginal cost function of this firm? Use capital letters in your response (i.e. Q not q) 固助 e following best describes what the marginal cost means in words? cost Dalia will have to pay to produce another kilo of coffee and this cost is always the same. t of producing a given level of output. rage cost of all the output and it depends on the total level of output. at of producing more output. cost Dalia will have to pay to produce another kilo of coffee and it depends on the total level of output. kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make sure you y. decimal place (e.g. 2.3), she will produce AEkgs of coffee to maximize profits. ne decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly. of profit.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
ChapterB: Differential Calculus Techniques In Management
Section: Chapter Questions
Problem 1E
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Transcribed Image Text:Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand
function that she faces is given by
P=21 - 0.7 Q
where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by
TC = 18 + 12 Q + 0.3 Q2
(a) What is the marginal revenue function of this firm? Use capital letters in your response (i.e. Q not q).
MR=
(b) What is the marginal cost function of this firm? Use capital letters in your response (i.e. Q not q)
MC=
(c) Which of the following best describes what the marginal cost means in words?
O It is the cost Dalia will have to pay to produce another kilo of coffee and this cost is always the same.
O The cost of producing a given level of output.
O The average cost of all the output and it depends on the total level of output.
O The cost of producing more output.
O It is the cost Dalia will have to pay to produce another kilo of coffee and it depends on the total level of output.
(d) How many kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make sure you
round correctly.
To within one decimal place (e.g. 2.3), she will produce
aE kgs of coffee to maximize profits.
(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly.
She makes £
of profit.
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