PQ7.2(b) Case: Average Revenue Demand Curve (AR): P=120-0.02Q Weekly Production (Q) Price (P) (Cents/Unit) Cost Function (C) = 60Q +25,000 Marginal Cost (MC) = Slope of Total Cost (TC) Curve = 60 Assume: Maximum Profit. Question: (This Question - Only) What will the new Level of Production, Price, and Total Profit per week be - assuming Maximum Profit, if the government decides a 14 cent Tax Levy per unit on the product from PQ7.2(a),↓ Bartleby Expert Answer PQ7.2(a): What is the Level of Production, Price, and Total Profit per week - assuming Maximum Profit? Answer: Level of Production (0) = 1,500 Price (P) = 90 Profit (n) = 20,000

PQ7.2(b) Case: Average Revenue Demand Curve (AR): P=120-0.02Q Weekly Production (Q) Price (P) (Cents/Unit) Cost Function (C) = 60Q +25,000 Marginal Cost (MC) = Slope of Total Cost (TC) Curve = 60 Assume: Maximum Profit. Question: (This Question - Only) What will the new Level of Production, Price, and Total Profit per week be - assuming Maximum Profit, if the government decides a 14 cent Tax Levy per unit on the product from PQ7.2(a),↓ Bartleby Expert Answer PQ7.2(a): What is the Level of Production, Price, and Total Profit per week - assuming Maximum Profit? Answer: Level of Production (0) = 1,500 Price (P) = 90 Profit (n) = 20,000

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

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 6E

See similar textbooks

Similar questions

PQ7.2(a) Case: Average Revenue Demand Curve (AR): P=120 -0.02Q Weekly Production (Q) Price (P) (Cents/Unit) Cost Function (C) = 60Q +25,000 Marginal Cost (MC) = Slope of Total Cost (TC) Curve = 60 Assume: Maximum Profit. Question: What is the Level of Production, Price, and Total Profit per week - assuming Maximum Profit?
1. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. • Total cost = Fixed cost + Variable cost • Revenue = Demand * Price • Profit = Revenue – Total cost 1.1. Develop the equations for total cost and total revenue. 1.2. Find the breakeven quantity.
2. What is the relationship between the total cost curve, and the average cost per unit? Explain their relationship, and draw a diagram showing how the two are related. The total cost of production, in thousands of dollars, is C(q) = q³ 12q² + 60q, where q is in thousands and 0 ≤ q ≤ 8. (a) Graph C(q). Estimate visually the quantity at which average cost is minimized. (b) Determine analytically the exact value of q at which average cost is minimized.
8. (a) At a health food manufacturing plant, it costs $20000 to produce 1500 cases of tofu, and $26000 to produce 2000 cases of tofu. Find this manufacturer's linear cost function based on this information. (Let r be the number of cases of tofu.) (b) Each case of tofu is then sold for $18. Find this manufacturer's revenue function. (c) Find this manufacturer's profit function and simplify it. (d) What is the break-even point for this business?
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.) $
22 The total cost and total revenue functions for a product are C(q) = 5,000,000 + 250q + 0.002q? R(q) = 1,250g - 0.005q? (a) Using the marginal approach, determine the profit-maximizing level of output. (b) What is the maximum profit?
My student id is 2020-3-60-007 and (Departmental code - 101) (a) Plot Demand, Marginal Cost, Marginal Revenue and Average Total Cost curve inone graph. Identify the Profit maximizing level of price and quantity in the graph.(b) Calculate the Profit from the above graph given the following data:• Profit maximizing Price level is the first 4 digits of your EWU Student ID• Profit maximizing Cost level is the last 3 digits of your EWU Student ID• Profit maximizing Output level is the 2 digits (departmental code) from yourEWU Student ID
(b) The total revenue curve of a firm is R(q) = 40q – 12q² and its q- 12.85q + 20 + 30 400 where 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 the ouput level of the firm is 10 units? iv. Determine the level of output for which the firm's profit is maximize v. What is the firms's maximum profit? i. ii.
Total Total Revenue Cost Quantity (TR) (TC) Profit (MR) (MC) 0 0 8 1 8 10 2 16 11 3 24 13 4 32 16 5 40 20 6 48 27 7 56 36 8 64 47 9 72 65 10 80 90 Marginal Marginal Revenue Cost Fill in the table to determine the profit maximizing level of output, price, and profit. The optimal quantity is A/ A (number) units, the optimal price is (number) dollars, which maximizes (number) dollars. This table A profits at displays profit maximization under the (perfect competition / monopolistic competition / oligopoly / monopoly) market structure.
Problem: A large company has determined the relationship between the price (p) of their product and the demand (D) as p = 450 - 0.03D. The fixed cost per year is $500,000 and the variable cost per unit is $101.50. a. Determine the optimal demand (D) to maximize profit? b. How much is the maximum profit? c. What are the break-even points in terms of number of units? d. What are the revenues and total costs at these break even-points?
Crawford Computing finds that its weekly profit, in dollars, from its production and sale of x laptop computers is P(x)=-.002x^3-.15x^2+400x-800 Currently, Crawford builds and sells 9 laptops weekly. (a) what is the current weekly profit? (b) how much profit would be lost if production and sales dropped to 8 laptops weekly? (c) what is the marginal profit with x=9? (d) use answers from parts (a) and (c) to estimate the profit resulting from the production and sale of 10 laptops weekly.
Q4- A firm producing lamps has fixed costs of €1000 per week. 1) f a kamp costs €15 to produce. (a) Write down the equation for total cost. (b) Graph the total cost function for Q = O to 100 (c) Calculate the cost of producing 25 lamps. (d) How many lamps are produced when total costs are C7000? 2) If the lamps are sold for €35 each. (a) Write down the equation for total revenue. (b) Graph the total revenue function for Q = 0w 100. (c) How many lamps are sokl when total revenue is €1750? (d) Does the firm's revenue exced costs when 80 lamps are sold? Calculate the rofit/loss when 80 lamps are sold.