Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm's quantity produced The market demand curve for this product is Demand: QD = 120 - P where P is the price and Q is the total quantity of
Q: A two-product firm faces the following demand and cost functions: Qi = 40 – 2P, - P2 (0) Find the…
A:
Q: Suppose a rms demand function is given as Q = 55 – 0.5P, where P is price and Q is rate of output…
A: Total revenue is the total receipts collected from the sale of goods or services in the market.…
Q: A small tie shop finds that at a sales level of x ties per day its marginal profit is MP(x) dollars…
A: Given:MP(x)=1.60+0.10x-0.0012x2Now,MP(x)=P'(x)Thus,P'(x)=∫(1.60+0.10x-0.0012x2)dxP'(x)=1.60x+0.05x2-…
Q: The total cost function will be given by Total Cost = 200 + 2Q + 0.01 Q^2 and demand function is Q =…
A: Total Cost = 200 + 2Q + 0.01 Q^2 demand function is Q = 1000 - 0.02 p Inverse demand function , p =…
Q: If the marginal revenue (in dollars per unit) for a month for a commodity is MR = -0.6x + 41, find…
A: Marginal revenue(MR) is the change in the Total Revenue(TR) on account of the sale of an additional…
Q: If it is projected that there will be 100 tickets sold at a dinner price of $115.50, which catering…
A: The objective of any private organization is to maximize its profit. Here, the company decides which…
Q: QUESTION SEVEN The average total cost of producing a commodity is given by ATC = 1000'g + 100 -…
A: As per the policy , we are allowed to solve the first three parts in case multiple sub parts.
Q: The inverse demand function for a commodity is given by p=41-0.33q and the cost of producing that…
A: Introduction The technique of maxima and minima can be used to determined the level of output at…
Q: TRUE of FALSE Cost- plus pricing is circular for the manufacturing industry in that demand must be…
A: Cost-plus is a pricing method which uses to secure margin by fixing mark-up. The manufacturing firm…
Q: A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost…
A: Under a competitive market, there exists a large number of buyers and sellers. The sellers sell…
Q: A firm can sell its output at the price p=10 per unit. The firm’s cost function is C=16+q2 To…
A: Given: P=10 per unit Cost Function : C=16+q2
Q: If you are given the following total cost function and the demand equation as follows: TC = 40+ 50Q…
A: TC is the total cost which the firm occurred during the production which involves variable and fixed…
Q: Mathematical Economics If fixed cost are 20, variable cost per unit are 2 and the demand function is…
A: here we calculate the profit , by reducing the cost from revenue , and by using the given…
Q: 6q + 400g , where R(q) is in dollars and 103q + 3333 , where C(q) is in dollars and q is Suppose a…
A: Given, Revenue function: R (q) = -6q2 + 400q Cost function: C (q) = 103q + 333
Q: ABC Company Limited is a new business established to produce tables (in units). The demand function…
A: Profit maximizing quantity is such quantity where marginal revenue is equal to marginal cost.
Q: Question: The price - demand equation and the cost function for the production of HDTV s are given…
A: Given x=9000-30pandx=15000+30xx=9000-30pp=900030-x30⇒P=300-x30We know that demand x and price…
Q: A commodity has a demand function modeled by p= 100-0.5x and the total cost function is C= 50x+37.5…
A: Answer: Introduction: Condition for maximum profit: Profit is maximum where marginal revenue is…
Q: The price-demand and cost functions for the production of microwaves are given as p = 215 80 and…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The price-demand equation and the cost function for the production of active styluses are given,…
A: We know, e = -20(P/9400- 20P) If price = $150, we have elasticity as: e = -20(150/9400 - 3000) e =…
Q: If the market quantity demanded and quantity supplied functions are: QD = 187 - 4P Qs = 49 + 9P and…
A: Given:Qd = 187 - 4PQs = 49 + 9PMC = 2 + 3q
Q: Define Q to be the level of output produced and sold and assume that the firm’s cost function is…
A: Profit maximization is the situation in which the marginal revenue equals marginal cost. It means a…
Q: Question 1 A computer retailing company specializes in the sale of jump drives to community colle…
A: Given The demand function for jump drives is p=2x2+10x+1000 .........(1) The average…
Q: A commodity has a demand function modeled by p = 106 − 0.5x and a total cost function modeled by…
A: In a firm that wants to maximize its profits levels, it becomes vital to determine the levels of…
Q: The demand equation for a product is p= a– bq and the cost function is C(9) = kq² – rq where p is…
A: At equilibrium Marginal revenue is equal to marginal cost. Firstly we calculate marginal revenue…
Q: Best Orange Juice Company is located in Oman. The cost function for total orange juice production…
A: MC = dC/dx = 0.5x = 0.5xs + 0.5xm Pm = (100 - xm) / 2 = 50 - 0.5xm Ps = (100 - xs) / 4 = 25 - 0.25xs…
Q: The burrito truck industry in the city is perfectly competitive. On any given evening, the market…
A: Given; Demand function; QD=67-p Where; QD= Quantity of Burritos demandedp= Price of Burritos Rent of…
Q: The demand curve for Blivets has the formula P =h(q) = 12-4q Where q is measured in thousand of…
A: The revenue is the total amount of money which can be made from selling all the units of output. The…
Q: The manager of a company has determined that the cost function for the production can be described…
A: Revenue=Price×QuantityMarginal Cost=dCdQAverage Cost=CQ
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: Profit maximizing level of output is at the point where marginal cost MC equals marginal revenue MR.…
Q: The marginal profit function of a firm (profit (Π), point (Q) rate change depending on quantity) is…
A: Marginal profit = -2Q + 120, Fixed cost = 1000 Profit is maximized when marginal profit = 0 -2Q +…
Q: Given cost and price (demand) functions C(q)= 110q + 44,600 and p(g) = - 2q + 860, what is the…
A: The increase in income that occurs from the sale of one additional unit of output is known as…
Q: Suppose that the cost required for a company to produce r units of its product is a linear function…
A: Note: I have solved the question completely as we are expected to solve it properly. Answer: (a).…
Q: If the demand for a particular commodity is p=-0.09x+51 the total cost function,…
A: 1. The revenue is obtained by multiplying the price with quantity in the market. The price in this…
Q: Find the price that will maximize profit for the demand and cost functions, where p is the price, x…
A: The law of demand establishes the relationship between the price of the good and the quantity of…
Q: Consider with the cost function producing a single good with the cost function {.. 5, If A = 0 C(A)…
A: Fixed cost is the cost which doesn't change with the level of output. And sunk cost is the cost…
Q: Suppose a profit-maximizing price taker had a marginal cost function given by: MC = 10 +2q. %3D…
A: Here we calculate the producer surplus by using the given Marginal Cost function, so the calculation…
Q: A firm faces a demand function (where q=quantity demanded and p=price): q = 200 – 2p and a total…
A: Answer: Given, Demand function: q=200-2p Or, 2p=200-q p=100-0.5q Total cost function: Break-even…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A:
Q: A price-setting firm faces a demand curve described by the equation P = 100 - 5Q and its total…
A: TC = 12 + 30q MC = dTC/dQ = 30 P = 100 – 5q TR = P * q = (100 – 5q) * q = 100q – 5q2 MR = dTR/dQ =…
Q: Yaster Outfitters manufactures and sells extreme-cold sleeping bags. The table below shows the…
A: Given, x is sleeping bags p is price and c is cost
Q: Find the marginal values for functions a, b, and c given below and evaluate each at Q=100. a) C(Q) =…
A: Have you ever considered how valuable you are to your company? When requesting a raise or promotion,…
Q: A demand of 230 banquet attendees can be expected at a dinner plate price of $80.00 each. A demand…
A: The Profit Function s for each of the possible Contractors in terms of x are Profit = Revenue -…
Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…
A: The average total cost is calculated by total cost divided by the total quantity produced. ATC = TC…
Q: The price-demand equation for the production of bluetooth speakers is: p = 250 - 1/20x, for 0 is…
A: Profit function: π =TR -TC; where π is profit, TR is total revenue and TC is total cost Revenue…
Q: Damai Biru Sdn. Bhd. is a firm selling homogenous product in a competitive market. It has the…
A: A perfectly competitive firm is a price taker, meaning they accept the market price as given
Q: If resource prices rise and the per-unit cost of producing a product increases as the firms in an…
A: Long run supply curve refers to the portion of marginal cost curve which is above average total…
Q: For output levels of 1, 2, 3, 4, 5 and 6 units, a competitive firm's total costs are $142, $172,…
A: Profit maximize when MC = MR MC is marginal cost and calculated by MC = (TCn - TCn-1)/(Qn - Qn-1)…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that each firm in a competitive industry has thefollowing costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm’s quantity produced. The marketdemand curve for this product is Demand: QD = 120 – P where P is the price and Q is the total quantity of the good.Currently, there are 9 firms in the market. a. What is each firm’s fixed cost? What is its variable cost?Give the equation for average total cost. b. Graph average total cost curve and the marginal cost curvefor q from 5 to 15. At what quantity is average total cost curve atits minimum? What us marginal cost and average total cost at thisquantity? c. Give the equation each firm’s supply curve. d. Give the equation for the market supply curve for the shortrun in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market inthe short run? f. In this equilibrium, how much does each firm produce?Calculate each firm’s profit or loss. Is there incentive for…Suppose a science museum charges $15 for admission, and each day 200 adults visit the museum. Suppose the museum directors cannot change the price they charge, but they know that for every $1000 a day spent on advertising they can increase demand by 50 tickets. The cost of operating the museum for a day is $2,000. Which of the following advertising choices should they make to maximize profits? O Spend $100O0 a day on advertising O Spend $2000 a day on advertising O Spend no money on advertising O Spend $3000 a day on advertisingThe market for fertilizer is perfectly competitive.Firms in the market are producing output but arecurrently incurring economic losses.a. How does the price of fertilizer compare to theaverage total cost, the average variable cost, andthe marginal cost of producing fertilizer?b. Draw two graphs, side by side, illustrating thepresent situation for the typical firm and for themarket.c. Assuming there is no change in either demand orthe firms’ cost curves, explain what will happenin the long run to the price of fertilizer, marginalcost, average total cost, the quantity supplied byeach firm, and the total quantity supplied to themarket.
- The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. Price ($/bushel) 60 50 40 30 20 10 0 0 ΤΑ 10 20 30 40 50 60 70 80 Quantity (bushels/month) Select one: O A. 50 bushels. C If mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, he will gather: B. 30 bushels. O C. 20 bushels. O D. zero bushels.Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…
- Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…Suppose XYZ sells widgets in a competitive market. Suppose that, when the quantity of production is 10 units, XYZ's: • marginal profit is $3 • average variable cost is $9 • average total cost is $11 • average fixed cost is $2 • average revenue is $15 What is XYZ's marginal cost when the quantity of production is 10 units? titiesA publisher faces the following demand schedule for the next novel from one of itspopular authors:Price Quantity Demanded$ 100 0 novels90 100,00080 200,00070 300,00060 400,00050 500,00040 600,00030 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishingthe book is a constant $10 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity woulda profit-maximizing publisher choose? What price would it charge?b. Compute marginal revenue. (Recall that MR = ΔTR/ΔQ.) How does marginal revenuecompare to the price? Explain.C. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantitydo the marginal-revenue and marginal-cost curves cross? What does this signify?d. In your graph, shade in the deadweight loss. Explain in words what this means e. If the author were paid $3 million instead of $2 million to write the book, how wouldthis affect the publisher’s decision regarding what…
- TI,c market for apple pies in the city of F.ctenia is competitive and has the following demand schedule; a. Compute each producer's total cost and averagetotal cost for l to 6 pies.b. The price of a pie is now SIL How many pies aresold? How many pies docs each producer make?How many producers are there? How much profitdocs each producer earn? c. ls the situation d escribed in part (bl a long-runequilibrium? Why or why not?d. Suppose tha t in the Jong run there is free entryand exit. How much profit does each producerearn in the Jong-run equilibrium? Wha t is themarket price? How many pies docs each producermake? How many p ies are sold in the market?How many pie producers arc operating?Consider the market for solar power. Assume the market is perfectly competitive and initially in long-run equilibrium; solar power sells for $.25 per kwh (kilowatt hour, a unit of power). Draw2graphs, oneto represent the market (supply and demand), and one to represent asingle firm (demand, marginal cost, and average cost curves). Assume a u-shaped average cost Show the equilibrium price and the quantity produced by the market (Q) and by each individual firm (q).Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?