Qd=88 000-200P+ 0.3M-1000PR MC 90 +0.09Q TVC = 48Q TFC = 650 000 where Quis quantity demanded, P is price, M is income, and Pe is the price of a related good. The firm expects income to be $90 000 and PR to be $5. The Marginal Revenue Function is MR = Q The profit-maximizing choice of output is units. The profit-maximizing price is $ The firm's profit is $

Qd=88 000-200P+ 0.3M-1000PR MC 90 +0.09Q TVC = 48Q TFC = 650 000 where Quis quantity demanded, P is price, M is income, and Pe is the price of a related good. The firm expects income to be $90 000 and PR to be $5. The Marginal Revenue Function is MR = Q The profit-maximizing choice of output is units. The profit-maximizing price is $ The firm's profit is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If the price is given as 20 per unit and the given quantity is $150 billion Find the Total revenue
Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a homogenous product) is given by the following equations respectively: Qd = 50 − P Qs = 1 + 3P The typical firm’s total cost is given by the following equation: TC = 10 + 0.5Q2 + 5Q What is the equilibrium price and quantity in this market? What is the firm’s MC function? What is the MR function? What is the profit maximizing level of output for the firm? How much profit is this firm earning? Show it graphically Is it short run or long run? Explain!
Price MC ATC D MR 0 ab cd Quantity The firm's profit-maximizing price in the graph above is: Multiple Choice O f. h. g. e.
Consider a competitive market for red lentils with 100 identical farmers in Horsham Victoria, a competitive market price of $5 and the following MC for each farmer: MC = $0.05Q Also consider the following market demand function: QD a) Calculate the optimal level of production (in tonnes) for each farmer (show workings) = = 1000 - 40P b) Assuming 100 lentil farmers of equal size how many tonnes of lentils in total will be supplied in the entire market? (show all workings) c) Consider that the government now imposes a 25% tax on producers, calculate i) the new equilibrium level of output for each firm (hint - think about how this affects each farmer's marginal cost), and ii) new total supply in the entire market (show all workings)
Do
A) Find the price function and then the TR function. B) Write the MR and MC functions below. Remember: MR = dTR/dQ and MC = dSTC/dQ. C) What positive value of Q will maximize total profit? Remember: setting MR = MC and solving for Q will give you the Q that maximizes total profit. The value of Q you get should not be zero or negative.
Highest price where quantity of output is equal to zero = R1200P*= R650MC at Q*= R260AVC at Q*= R150AFC at Q*= R300Price at allocative efficient output level = R400Allocative efficient level of output = 180 unitsTotal fixed cost = R33000MC at output equal to zero = R100 1.1. Assuming profit maximising behaviour, calculate each of the following for Firm M. ATC = RQ*= unitsProfit / loss = RLerner index = Mark-up = Consumer surplus = RDeadweight-loss = RTVC = R
E.g.1: A demand function is given by the equation P = 24 6lnQ ➤ Find the equation of TR (total revenue) and determine for which value of Q is TR maximised. Find MR (marginal revenue) as a function of Q Show that MR is a positive decreasing, concave up function.
Market for ABC company’s clothing ABC clothing company produces clothing that is sold online and in catalogs, which is catered to a lower income consumer. Suppose the company’s demand curve for 2019 was the following: Qd = 2000 – 150P +1.1A + 15PDEF And the company’s supply curve was Qs = 250 + 5P, where Qd is the quantity of product demanded for ABC company clothing P = the average price of goods produced by ABC company A = Advertising expenditures in dollars PDEF = the average price of DEF clothing, a competitor’s clothing, in dollars Qs is the quantity of product supplied for ABC company’s clothing Calculate the price elasticity of demand for good ABD. Based on your answer, if the company increases prices, what will happen to total revenue?
A firm's demand function for a certain good is given by P= 100e-010. Its total cost function is TC = 100e-01e +50. What output level maximizes the firm's profit?
Managerial Econ - Required Homework for Module 1 Problem 1: A company's revenue function can be defined as; TR = Price (P) × Quantity Demanded (Q). If the ordinary demand function for your firm is Q = 75 -0.4P where Q is monthly output: a. What is the total revenue function for this firm in terms of Q? b. What is the average revenue function for this firm in terms of Q? C. What is the MR function for this firm in terms of Q? d. Show that MR will be less than AR for any positive level of Q. Why is that? e. What is the quantity level that maximizes total revenue? What is the price? Problem 2: Your company's cost function (monthly) can be defined as; TC: cost per unit (AC) × quantity supplied (Q). If the cost per unit (average cost) for your firm is AC = (800/Q) – 10 +2Q: a. What is the total cost function for your firm in terms of Q? b. How would you interpret the intercept term in this function? c. What is the marginal cost function for your firm? d. At what level of output (Q) is AC…
qD = 100 – 0.5p, qS = 2p – 20 What is the price elasticity of supply? Is the situation modeled here more likely to be reflecting a short- or long-run equilibrium? Why?