Suppose the company lacks confidence in the accuracy of cost estimates expressed in a cubic equation and simply wants to use a linear approximation. Suggest a linear representation of this cubic equation. What difference would it make on the recommended profit-maximizing and revenue-maximizing prices

Craigsburg enterprises has a fixed cost of 10,000. It’s variable costs are shown in the table below. These costs remain unchanged as market prices change over the next few years:

Given Cost and Revenue functions C(q)=q3−10q2+52q+5000 and R(q)=−3q2+2400q​, what cost is incurred when marginal profit is​ $0?

The total revenue function for a product is given by R=655x dollars, and the total cost function for this same product is given by C=19,250+70x+x2, where C is measured in dollars. For both functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 25 units are produced and sold? c. What is the profit when 43 units are produced and sold?

For the cost and price functions below, find a) the number, q, of units that produces maximum profit; b) the price, p, per unit that produces maximum profit; and c) the maximum profit, P. C(q) = 70+ 14q; p = 70-2q a) The number, q, of units that produces maximum profit is q = b) The price, p, per unit that produces maximum profit is p = $ c) The maximum profit is P = $

Melody Music Store has a total cost function of TC = 500 + 10Q + 5Q². (a) Find the firm's fixed costs (FC) and variable costs (VC). (b) Find the firm's average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC).

The curve connecting cost minimization levels of output is :  a always a straight line b typically downward sloping  c called firms expansion path  d typically horizontal e typically vertically

AM Instrument Company manufactures miniature calculators, which it sells to a limited number of exclusive dealers.  AM’s normal production rate is 260 units per week at a total cost of $3,200.  At full capacity it can produce 340 units per week at a total cost of $3,800. What is the average cost per calculator under normal operating conditions? What is the average variable cost per calculator? What is the total fixed cost? What is the average fixed cost per calculator under normal operating conditions? A foreign distributor offers to buy 50 calculators per week from AM over a one month period, to be marketed under a different brand name.  The distributor offers a price of $10 per calculator.  Should AM accept the offer?  What is the least price AM should accept for this kind of arrangement?

A study of 86 savings and loan associations in six northwestern states yielded the following cost function. C� = 3.69 - 0.007999Q� + 0.000005359Q2�2 + 25.0X1�1     (3.69)   (3.08)   (3.42)   (3.50)   where C� = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q� = output; measured by total assets ($ million) X1�1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Holding constant the effects of bank branching (X1�1), what is the level of total assets that minimizes the average operating expense ratio? $746.31 million   $1,562.70 million   $1,492.63 million   $461.31 million     What is the average operating expense ratio for a savings and loan association with the level of total assets determined in the previous part and 1 branch?…

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