D. The Airbus A350, first entered service in January 2015 with Qatar Airways, is one of the most techno- logically advanced passenger airplanes today. Made largely of carbon fibre reinforced polymer, its high fuel efficiency makes it a popular choice of long-range airliner for airlines. Suppose Airbus' production function for this plane is C = 20 +5Q², and the plane is sold at a price of P = $50. 1. Create a table detailing Airbus' total cost, average total cost, marginal cost, total revenue, marginal revenue, and profit for each quantity between 0 and 10 of the A350. 2. What is Airbus' profit-maximizing quantity for the A350? How much profit does Airbus make? 3. Plot Airbus' marginal cost, marginal revenue, and average total cost curves, lable the profit-maximizing quantity Q*, and the area of company's profit. 4. Plot Airbus' total cost and total revenue curves, lable the profit-maximizing quantity Q*. 1 5. Plot Airbus' profit curve, lable the profit-maximizing quantity Q* and profit ^*. 6. Facing increased demand as the pressure of the pandemic eases up, the market price of this plane has increased to $70. Create the same table for the same quantities. What is Airbus' profit-maximizing quantity now? 7. Using the two pairs of price and quantity you got from parts 2 and 6, graph the supply curve of the Airbus A350, and derive the supply function.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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D. The Airbus A350, first entered service in January 2015 with Qatar Airways, is one of the most techno-
logically advanced passenger airplanes today. Made largely of carbon fibre reinforced polymer, its high fuel
efficiency makes it a popular choice of long-range airliner for airlines. Suppose Airbus' production function
for this plane is C = 20 +5Q², and the plane is sold at a price of P = $50.
1. Create a table detailing Airbus' total cost, average total cost, marginal cost, total revenue, marginal
revenue, and profit for each quantity between 0 and 10 of the A350.
2. What is Airbus' profit-maximizing quantity for the A350? How much profit does Airbus make?
3. Plot Airbus' marginal cost, marginal revenue, and average total cost curves, lable the profit-maximizing
quantity Q*, and the area of company's profit.
4. Plot Airbus' total cost and total revenue curves, lable the profit-maximizing quantity Q*.
1
5. Plot Airbus' profit curve, lable the profit-maximizing quantity Q* and profit *.
6. Facing increased demand as the pressure of the pandemic eases up, the market price of this plane
has increased to $70. Create the same table for the same quantities. What is Airbus' profit-maximizing
quantity now?
7. Using the two pairs of price and quantity you got from parts 2 and 6, graph the supply curve of the
Airbus A350, and derive the supply function.
Transcribed Image Text:D. The Airbus A350, first entered service in January 2015 with Qatar Airways, is one of the most techno- logically advanced passenger airplanes today. Made largely of carbon fibre reinforced polymer, its high fuel efficiency makes it a popular choice of long-range airliner for airlines. Suppose Airbus' production function for this plane is C = 20 +5Q², and the plane is sold at a price of P = $50. 1. Create a table detailing Airbus' total cost, average total cost, marginal cost, total revenue, marginal revenue, and profit for each quantity between 0 and 10 of the A350. 2. What is Airbus' profit-maximizing quantity for the A350? How much profit does Airbus make? 3. Plot Airbus' marginal cost, marginal revenue, and average total cost curves, lable the profit-maximizing quantity Q*, and the area of company's profit. 4. Plot Airbus' total cost and total revenue curves, lable the profit-maximizing quantity Q*. 1 5. Plot Airbus' profit curve, lable the profit-maximizing quantity Q* and profit *. 6. Facing increased demand as the pressure of the pandemic eases up, the market price of this plane has increased to $70. Create the same table for the same quantities. What is Airbus' profit-maximizing quantity now? 7. Using the two pairs of price and quantity you got from parts 2 and 6, graph the supply curve of the Airbus A350, and derive the supply function.
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