2. A Hawkeye has total cost and total revenue equations, but cannot figure out what the firm should do, Use your knowledge of profit-maximization to find the profit-maximizing quantity (X), the Total Revenue at that quantity, the Total Cost at that quantity, and the maximum profits earned. Total Cost X+4*X2 +100*X+100 Total Revenue --X2+500*X Profit-maximizing Quantity = Total Revenue at Profit-maximizing Quantity= Total Cost at Profit-maximizing Quantity= Maximum Profit Earned: =
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- 2. A Hawkeye has total cost and total revenue equations, but cannot figure out what the firm should do. Use your knowledge of profit-maximization to find the profit-maximizing quantity (X), the Total Revenue at that quantity, the Total Cost at that quantity, and the maximum profits earned. Total Cost = X³+4*X² + 100*X + 100 Total Revenue = -X² + 500*XShakti Inc. has been granted a patent for its arnica toothache balm. The table to the right shows the demand and the total cost schedule for the firm. What is Shakti's profit minus maximizingoutput? A. 4 units B. 6 units C. 7 units D. 5 units Price per dose (Dollars) Quantity Demanded (Dose) Total Cost of Production (Dollars) $80 0 $80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 340Gater Tools, a profit-maximizing firm, has a patent on a power tool, making it the only producer of that power tool. Thegraph above shows GaterTools' demand, marginal revenue, average total cost, average variable cost, and marginal costcurves.(a) Calculate GaterTools' total revenue if the firm produces the allocatively efficient quantity. Show your work.(b) Starting at a price of $12, if GaterTools were to increase the price by 4%, will the quantity demanded decrease bymore than 4%, less than 4%, or exactly 4%? Explain.(c) At a quantity of 10 units, is GaterTools' marginal product increasing, decreasing, or constant? Explain. (f) Does GaterTools have a dominant strategy? Explain using numbers from the payoff matrix.(g) Identify the Nash equilibrium. Explain why this is a Nash equilibrium using information from the payoff matrix.(h) Suppose HandyBilt makes a credible commitment to GaterTools that if GaterTools maintains its price, then HandyBiltwill pay GaterTools $250. Will this offer…
- If the break-even volume is the quantity for which the overall cost will be considered as Break-even, then, the total revenue does not equal to the total cost. A. True B. False O True O False School plans for set up a summer program for students. The program assessment as follows: 1. fixed costs for classroom and advertisement: $225/program 2. variable costs for handouts: $20/student 3. the program registration fee: $35/student questions: how many students to attend this program for revenue to equal cost? A. 15 B. 40 C. 25Output AFC AVC ATC MC 1 300 100 400 100 2 150 75 225 50 3 100 70 170 60 4 75 73 148 80 5 60 80 140 110 6 50 90 140 140 7 43 103 146 180 8 38 119 156 230 9 33 138 171 290 10 30 160 190 360 Refer to the chart above. If the market price is $179, the per-unit economic profit at the profit maximizing output is what? 15 23 33 391. The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell in order to earn a profit of $10,000 per month. The price of each television set is $300, the average variable cost is $100, and the fixed costs are $5,000 per month. a. What is the required sales volume for Abner Corporation to earn a profit of $10,000 per month? b. If the corporation were to sell each television set at $350 rather than $300, what would be the required sales volume? c. If the price is $350 but the average variable cost decreased to $85 rather than $100, what would be the required sales volume now?
- $30 M ATO 20 AVC 15 75 80 100 Output 1-At which point the firm gets abnormal profit? 2- based on your answer in question one, what is the amount of total revenue? 3- based on your answer in question one, what is the amount of abonormal profit? 4-Find the value of Average Fixed cost at Q= 100 5- Determine the shutdown point? For the toolbar, press ALT+F10 (P) or ALT+FN+F10 (Mac).If Soltani factory produces 1000 pieces of products, its total cost is equal to 50,000 monetary units, and if it produces 2,000 pieces of the same product, its total cost is equal to 80,000 monetary units. If each product is sold at a price of 40 monetary units, it is desirable: a. By drawing a diagram, specify the breaking point for it. B. If we want to make a profit equal to 20,000 units by selling 2500 pieces of product, what should be the variable cost? Use equations below: F Profit(P) = pQ - (F + vQ) TR=pQ TC=F+vQ Q=F/(p-v)Economics 1. CityGas is the only supplier of heating gas in Country K. It has a total cost function of C = 240 + 15Q. a. Find the marginal cost of CityGas. Show your steps. b. Based on your result in (a), show the marginal cost of CityGas in a graph. c. Making use of the graph in (b), show the profit- maximizing output level, and price of CityGas. (No calculation is required). d. i. Identify one key feature of the average cost of CityGas. Explain why this implies CityGas is a monopoly in the market of heating gas in Country K. ii. Besides (d)(i), briefly explain TWO other causes of monopoly power in general.
- Help me6. A firm manufactures and markets a product that sells for Birr 20 per unit. Fixed costs associated with activity total Birr 40,000 a month, while variable cost per unit is Birr 10. A maximum of 10,000 units can be produced and sold. Required: a) Drive the TR, TC and Total profit functions. b) Sketch the TR, TC and Total profit functions in the same coordinate system. c) What is the Break-even point (in terms of quantity and sales volume)? d) Drives the new TC, Total profit functions given that FC is increased by Birr 10,000 a month, and calculate the new break-even point. e) Drive the new TC and Total profit functions given that unit variable costs is decreased by 20% and calculate the new Break-even point. f) Drive the new TR and Total profits functions given that the unit selling price increases by 20% and calculate the new break-even point. g) What is the relationship that you may inter from BEP& FC, P& BEP and V& BEP? h) Assume selling prince increases by 10%…Question Four a) A fim, focusing on producing meat pie has a demand function 20 25-0.25P. If fixed cost is 145 and variable cost per urit function is 2Q- 40 + , where Q is number of meat pie produced and Pis the price per unit: i. 275 Determine the number of meat pies that maximizes the company's profit. ii. How much should the fimcharge per unit of the product? iii. Find the total profit at the profit mximizing level of output. iv. Using the own price edasticity of demand, comment on the fimis pricing policy optiors. b) The production function for Amzonbuưgers, producers of delicious burgers at Sao Tome, is given as: Q = K%L% If the wage rate is $15 per unit of labour, and cost of capital is $1,920 per unit and you have 1 unit of capital which carmot be changed, and the firmemploys 8 units of labour; i. Calculate the fimts total cost ii. Calculate the fim's average cost ii. Estimate the marginal product of labour