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- 3. Suppose that the total revenue function for a commod- ity is R = 64x- 0.02x². (a) Find R(100) and tell what it represents. (b) Find the marginal revenue function. (c) Find the marginal revenue at x = 100 and tell what it predicts about the sale of the next unit and the next 3 units. (d) Find R(101) - R(100) and explain what this value represents.The explicit costs of the firm is given as $2000 and the total revenue is $7700 Calculate the accounting profit of the firm.ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. (3 marks) • Total revenue $ 500,000 • Wages and salaries $ 40,0000 • Forgone salary $ 80,000 • Interest paid $ 10,000 • Forgone rent $ 10,000 • Raw materials $ 50,000 • Other payments $ 20,000 • Forgone interest $ 7,000
- 1. Given the following information: Total Product (TP) 0 1 2 3 4 5 6 Price Fixed Cost (TFC) $6000 $4000 6000 4000 6000 4000 6000 4000 6000 4000 6000 4000 6000 4000 Variable Cost (TVC) $ 0 7000 10000 12000 16000 22000 33000 a. Based upon the numbers from the table above, is this firm is operating in the short-run or the long-run? How do you know which time period it is operating in? | b. Based upon the numbers from the table above, how do you know that this firm exemplifies a purely competitive firm? c. Solve for total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), marginal cost (MC), total revenue (TR), and marginal revenue (MR) at every total product quantity. d. What is the profit maximizing level of total product (TP) in this example? (3 points) e. At a quantity of 1, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? f. At a quantity of 2, will…1- iro % What quantity of output will this profit-maximizing firm choose to sell? units) (Round your response to the nearest whole number) Dellars per Unit 1927 176- 160- 120 112 00 BO 04 10 32 Output MR MC ATC 80 odProblem 1 A lash adjuster keeps the pressure constant on engine valves, increasing automobile engines' fuel efficiency. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation: D=(2,000-p)/0.10. 6 a) What is the demand (D) when total revenue is maximized? b) What important data are needed if maximum profit is desired? & 7 IAA fg 8 DII myhp np f10 DDI 9 fi Po 112 prt sc
- 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.Output Average Fixed Average Variable Average Total 1 2 3 4 5 6 7 8 9 10 Cost $300 150 100 75 60 50 43 38 33 30 Cost $100 75 70 73 80 90 103 119 138 160 I Cost $400 225 170 148 140 140 146 tel:7%2043%20103%20146 % 20180 171 190 If the market price for the firm's product is $180, the firm will produce A) 7 units and earn economic profits of $278. B) 7 units and earn economic profits of $238. C) 8 units and earn economic profits of $120. D) 8 units and earn economic profits of $278. Marginal Cost $100 50 60 80 110 140 180- 230 290 36080-D The demand function for a product marketed by a company is p where D is the number of units and p is the price per unit. Determine the value of D and the total amount that will achieve maximum revenue.
- CellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $30, direct labor of $7, packaging costs of $7 and variable overheads of $2. CellPeak has fixed overheads of $252513 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would CellPeak make if the company sold 18,000 shelving units?Calculate accounting profit given:- Total revenue = $3000 Explicit cost = $3000A special shoe manufacturer ABC Co. has costs of production as follows : Quantity: 0 1 2 3 4 5 6Total Variable Cost ($): 0 50 70 90 140 200 360 Fixed costs are $100 and the price of ABC shoe is $50 (a) The chief financial officer tells the CEO that it’s better to produce only one shoe this month. What could be the reason for this advice by the CFO? What are the firm’s profits at that level of production? Is this the best decision? Explain.