please help me fast, thank you so much de f Tom and Jerry are opening a food truck named the T & J Box in New York.(a)Suppose f(p) is the number of sandwiches they sell at price p. From the shortexperience of working a food truck, Tom estimates that if the price of each sandwich is $7 thenthey will sell 800 sandwiches and Jerry estimates that f'(7) = –50. Explain in your ownwords what f' (7) = -50 means in practical terms.(b)Suppose R(p) is the revenue (i.e. total sales in dollars) obtained when sellingsandwiches at price p. What is the revenue when the price is $7 per sandwich? In other words,find R(7).(c)Calculate R' (7) and explain in your own words what it means in practical terms.(d)Define the cost function g(n) = cost of making n sandwiches. Assume the cost tomake 800 sandwiches is $2000, and g'(800) = 1.50. Explain in your own words whatg' (800) = 1.50 means in practical terms.(e)The number n of sandwiches they sell at price p is given by f(p), thus the costfunction C(p) as a function of the price p is given byC(p) = g(f(p)). Can you use the chain rule to evaluate C' (7)?(f)Tom and Jerry want to increase their profit. Should they increase the price from $7to $8 per sandwich? Why or why not? Use the profit formulaP = R – C (profit equals revenue minus cost), calculate P' (7), and argue from here.

"Since you have posted multiple questions, I can only answer the first question, rest you need to…

(d) Define the cost function g(n) = cost of making n sandwiches. Assume the cost to make 800 sandwiches is $2000, and g'(800) = 1.50. Explain in your own words what g' (800) = 1.50 means in practical terms.

(d) Define the cost function g(n) = cost of making n sandwiches. Assume the cost to make 800 sandwiches is $2000, and g'(800) = 1.50. Explain in your own words what g' (800) = 1.50 means in practical terms.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 15QP

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Inflation and Purchasing Power Theory

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Question

please help me fast, thank you so much

Tom and Jerry are opening a food truck named the T & J Box in New York.
(a)
Suppose f(p) is the number of sandwiches they sell at price p. From the short
experience of working a food truck, Tom estimates that if the price of each sandwich is $7 then
they will sell 800 sandwiches and Jerry estimates that f'(7) = –50. Explain in your own
words what f' (7) = -50 means in practical terms.
(b)
Suppose R(p) is the revenue (i.e. total sales in dollars) obtained when selling
sandwiches at price p. What is the revenue when the price is $7 per sandwich? In other words,
find R(7).
(c)
Calculate R' (7) and explain in your own words what it means in practical terms.
(d)
Define the cost function g(n) = cost of making n sandwiches. Assume the cost to
make 800 sandwiches is $2000, and g'(800) = 1.50. Explain in your own words what
g' (800) = 1.50 means in practical terms.
(e)
The number n of sandwiches they sell at price p is given by f(p), thus the cost
function C(p) as a function of the price p is given by
C(p) = g(f(p)). Can you use the chain rule to evaluate C' (7)?
(f)
Tom and Jerry want to increase their profit. Should they increase the price from $7
to $8 per sandwich? Why or why not? Use the profit formula
P = R – C (profit equals revenue minus cost), calculate P' (7), and argue from here.

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