A firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 1,000 + 40Q, respectively. Therefore, its profit maximizing level of output is:
Q: The market price a perfectly competitive firm has to take is pm and the total cost to the firm is…
A: TC = aq + Bq2 + y Price = Pm Equilibrium in a perfectly competitive market occurs when price set…
Q: Suppose that the manager of a firm operating in a competitive market has estimated the firm's…
A: A competitive market is a market where there are numerous number of producers competing with one…
Q: Suppose a firm has the following total cost function TC = 100 + 2q2. If price equals $20, what is…
A: A firm sets the price and quantity at the point where marginal revenue is equal to the marginal…
Q: Given a firms demand function Q-90+2P=0 and it's average cost function AC=Q²-8Q+57+2/Q. Find the…
A: Given Information Demand function Q-90+2P=0 Average cost function AC=Q²-8Q+57+2/Q
Q: The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q…
A:
Q: If a firm finds itself operating in Stage I, it implies that Select one: a. fixed inputs are…
A: Marginal product is the incremental change in the output by employing an additional unit of some…
Q: Define Q to be the level of output produced and sold, and assume that the firm’s total cost function…
A: The profit of any firm is maximized at a point where marginal revenue is equal to marginal cost. The…
Q: Suppose the price reaction function for Mars' chocolate bars is Pm = (Vm+cm)/2)+0.5Ph, where Pm is…
A: Price reaction function for Mars chocolate is:- Pm = (Vm +Cm)/2) + 0.5Ph Price reaction function for…
Q: C = 250,000 + 40Q + 0.01Q2, and market demand function: P = 940 – 0.02Q (a) Determine…
A: Total cost function represents the total cost as the sum of the fixed costs and the variable costs…
Q: The total Revenue curve of a firm is R(q) = 40q -12q^2 and its average cost A(q) = 1/30q^2 – 12.85q…
A: Given Total Revenue (TR) = 40q - 12q2 Average Cost (AC) = (1/30)q2 - 12.85q + 20 + 400/q
Q: Consider a firm's total profit (TP) function as follows: TP = 50Q - Q2 (Q refers to the quantity of…
A: Profit = total revenue - total cost
Q: Suppose that the demand functions facing a n product firm are as follows: Q, = 40 – 2P, + P2 %D Q2 =…
A: The following problem has been answered as follows:
Q: Find the optimal output to maximize profit given that revenue function is TR = 9000Q − 207q2 and…
A: When money generated from a business activity exceeds the expenses, costs, and taxes involved in…
Q: Assuming that your firms total cost function is, TC (Q) = $21,128+4Q profits when the prices are $7,…
A: In the question, the total cost is TC = 21128 + 4Q and prices are $7, $9, and $11. Now we are…
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: Suppose that the manager of a firm operating in a competitive market has estimated the firm’s…
A: Given: Firm's average variable cost (AVC) = 10 - 0.03Q + 0.00005Q2 Total Fixed Cost (TFC) = $600…
Q: firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A:
Q: Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750 ml size is…
A: Total revenue (TR) function can be obtained by using the following formula.
Q: The total cost of a firm is TC(Q)=4Q2+6Q+34. Accordingly, its marginal cost is 2*4*Q+6 when its…
A: Answer to the question is as follows :
Q: Consider that a company has a total cost function TC = 3Q3+2Q2+6. a.What is the average and…
A: Part a: Average Cost = Total Cost/ Quantity Marginal Cost = dTC/dQ TC = 3Q3+2Q2+6 Average Cost =…
Q: Which of these must be present before you, as an economic advisor, would recommend a new company…
A: Perfect Competition : A Perfectly competitive market is the one in which there are large number of…
Q: You sell Objects and you know your average cost (in dollars per Object) when you produce q Objects…
A: The firms have to deal with several issues and functions of costs, revenues, profits, and the like…
Q: A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 + Q + 0.25Q²…
A: Economic profit is the difference between total revenue and total cost.
Q: The cost function for a firm is given by C(Q) = 5+q^2. If the firm sells output in a perfectly…
A: Given: C(Q) = 5+q2 P=$20 In perfectly competitive market all the firms are price takers. Therefore,…
Q: Solve the attahment.
A: Given: Cost function: C(Q) = 100 + Q2 Price = $10
Q: Suppose that the manager of a firm operating in a competitive market has estimated the firm's…
A: Average variable cost(AVC) tells us how much a business company spends on its variable inputs( such…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a…
A: In a perfect competitive market all firms are price taker and keep their price level equal to the…
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: Given: Fixed Cost = $100 Total Cost = $2500 Output= 15 sinks q=15demand functionq=360 - p15=360 -…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) =1/30q2 − 12.85q +…
A: R(q) = 40q − 12q2 A(q) = 1/30 q2 − 12.85q + 20 + 400/q Total cost = A(q) * q
Q: The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q…
A: Total revenue, R (q) = 40q - 12q2 Average cost, A(q) = 1/30q2 - 12.85q +20 + 400/q
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: A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 + Q+ 0.25Q²…
A: The main objective of every firm is to maximize its profits. Profits are the excess of revenue…
Q: A firm’s demand function is P= 60 − 0.5Q If fixed costs are 10 and variable costs are Q + 12 per…
A: Profit is the amount which a producer earns over and above of all the costs. We can calculate profit…
Q: A company has determined that the price and the monthly demand of one of its products are related by…
A: The profit is maximized where the MR = MC.
Q: A noncompetitive firm has the following total cost function: TC = 3Q³ – 40Q² + 250Q + 900 If the…
A:
Q: The Bellmont Company produces two joint products, X and Y. The isocost curve corresponding to a…
A: Bellmont Company will optimize its output of both the goods at the level where the rate of change of…
Q: When economists talk about a barrier to entry, they are referring to a.the downward-sloping portion…
A: The hindrances that make it difficult for a firm to enter a certain market such as, government rules…
Q: A firm's demand function is Q = 16 – P and its total cost function is defined as TC = 3 + Q + 0.25Q2…
A: Equilibrium in economics is the state of stability and balance. Any deviation from this level will…
Q: Which of the following activities do you think is more likely to be carried out in- house by a…
A: Manufacturers can approach specialized people to work on specialized work that the manufacturer is…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q°. If the firm sells output in a…
A: In a perfectly competitive market at a price of $10, the firm should produce to maximize profits or…
Q: A business firm produces and sells a particular Variable cost is P30/unit. Selling price is P40 per…
A: Given informations: Variable cost = P30 per unit Selling price = P40 Fixed cost = P60000
Q: If MC= 3x + 20 and MR = 44 – 5x where x is the number of units produced and sold, and the cost of…
A: MC(marginal cost) is the change in TC(total cost) when one more unit of the product is made.…
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: Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The Bowery Hotel is located on Third Street in Manhattan. Suppose the hotel has explicit costs of…
A: We are given, Explicit cost = $200,000 Implicit cost = $50,000 Economic profit = $50,000 We need to…
Q: Find a maximum profit for a firm if its total revenue function is TR = 50Q - Q2 and its total cost…
A: Profit maximization occurs at the point where the Marginal revenue and Marginal cost are same.…
Q: foreign used car dealership which sells the 2020 Toyota Aqua Hybrid. His total cost function is…
A: in a competitive market there are large number of firms producing identical products thus acting as…
Q: Which of the following statements is correct with respect to profit maximization? PLEASE EXPLAIN…
A: In economics, an individual will enter into a transaction if he is able to generate profit from it.…
Q: Suppose a firm’s total cost curve is TC = 50Q2 + 10Q + 800 and marginal cost is MC = 100Q + 10. Find…
A: The marginal cost curve cuts the average cost curve and average variable cost at their respective…
Q: Suppose this firm has the capacity to produce up to 11 airplanes of this particular type. If the…
A: For maximizing Total Revenue the corporation would like to sell as much as they can produce. TR will…
A firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 1,000 + 40Q, respectively. Therefore, its profit maximizing level of output is:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A firm's demand function is Q = 16 – P and its total cost function is defined as TC = 3 + Q +0.25Q2. Use these two functions to form the firm's profit function and then determine the level ofoutput that yields the profit maximum. What is the level of profit at the optimum?A startup software company has indicated its cost, c(x), and revenue, f(x), as given below, such that x is the number of lines of programing code (units in 1000 lines). c(x) = 80000 - 2(x-200)2 f(x) = (x-10)3 + (x+10)2 Find the marginal cost analytically, and draw its graph Find the marginal revenue analytically, and draw its graph Solve for the x point where marginal cost is equal to marginal revenue analytically. Comment why is this point significant analytically. Write the profit function and draw its graph Is the profit function concave up or concave down?The demand curve of a firm is p=1200– 21q and its total cost is C(q) = 2q – 66q² +600q+1000 where q is the output of the firm (in thousands). (i) Derive an expression R(q) for the firm' s revenue function. (ii) Derive an expression II(q) for the firm' s profit function. (iii) Is the rate of change of profit increasing or decreasing when the output level of the firm is 10,000 units?
- A firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profitA firm has a linear demand function for it's product.When the price for the product is Sh.220,the quantity demanded is 40 units.When the price increases to Sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is given by; MC = 40Q-2Q^2+2 Fixed cost = Sh. 5 million Where Q= quantity demanded, Mc= marginal cost(cost in Sh. Million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at a maximum profitSANUMARC produces fingerlings for sell. The quantity x (kg) of these fingerlings demanded each week is related to the wholesale unit price p by the equation P = − 0.006x + 180 The weekly total cost incurred by SANUMARC for producing x kgs of fingerlings is C(x) = 0.000002x3 – 0.02x2 + 120x + 60,00 a. Find the marginal cost function C, b. Find the marginal revenue function R’ and the marginal profit function P’ c. Compute P’(2000) and interpret the results.
- Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 + 2Q². a. What are the firm's fixed costs? b. What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10 c. How much should this firm charge for the product? d. What is the optimal level of output to maximize profits? e. How much profit will be earned? f. In the long run, should this firm continue to operate or shut down? Why?Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml size is q = 4000 − 250p and his total cost function is C(q) = 500 + 0.2q.How many 750ml bottles of dishwashing liquid should TeddyJ produce per month if he wishes to maximize his profits?The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 37x - 0.07x2. (a) Find the marginal cost function C'(x). C'(x) = (b) How fast is the cost going up at a production level of 100 teddy bears? When they produce 100 teddy bears, the production costs are increasing at a rate of x dollars per teddy bear In other words, the cost to produce the 101st teddy bear is approximately dollars (c) Find the average cost function C, and evaluate C(100). C(x) = C(100) = So when they produce 100 teddy bears, the average cost per teddy bear is x dollars. (d) Fill in the blanks: Since the marginal cost is less than the average cost per unit, increasing production from 100 teddy bears will cause the average cost per unit to decrease.
- A firm in a competitive industry has the following cost function: c(y) = y3/3 - 20y2 +310y. (Note that this is a different cost function than the one used in the earlier problems.) What is the minimum price at which this firm will supply any output? (Also note that the question is asking for price, not quantity.) Answer is integer.Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 60 + 0.10x + 0.001x² dollars. (a) Calculate the marginal profit function, in dollars per copy. P'(x) = (b) Compute the marginal profit, if you have produced and sold 500 copies of the latest edition. When you produce and sell 500 copies, the marginal profit is dollars per copy. Interpret the results: The approximate loss from the production and sale of the 501st сорy is dollars.For a certain company, the cost function for producing x items is C(x)=30x+250 and the revenue function for selling x items is R(x)=−0.5(x−100)2+5,000. The maximum capacity of the company is 140 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit! Answers to some of the questions are given below so that you can check your work. Assuming that the company sells all that it produces, what is the profit function? P(x)= . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)? Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 70 or 80 items. What is their profit for each case, and which level of production should they choose? Profit when producing 70 items = Profit when producing 80 items =…