ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.50 per slice?Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Instructions: Enter your response as a whole number. If you are entering a negative number, be sure to include a negative sign (−). When the price is $1.50 per slice, the profit-maximizing level of output is slices per day. Instructions: Enter your response rounded to the nearest penny (two decimal places). At the profit-maximizing level of output, the producer's profit is: $ per day.arrow_forwardQuestion 19 3.33 pts A firm faces the following demand function for its product: Q = 25 - 2P1 + 0.5P2. If this firm has marginal costs equal to 3; what price should this firm set? Round your answer to two decimal places.arrow_forwardneed help with this math problem, thank you in advance!arrow_forward
- Consider the following cost function: Total Cost = 50+5Q^3 and demand curve Price= 5000-275*Q Given these functions, what would be the profit maximizing output?arrow_forwardFor this part, solve for the utility maximization and cost minimization problems. Additionally, indicate each important step in solving for the utility maximization of the consumer and the cost minimization of the producer. a. Suppose that a producer wants to minimise the cost of producing t-shirts given as: TC = (WL)+ (RK) Q(K, L) = 10K0.2 L0.65 s.t. Suppose that the firm must produce Q = 945 shirts, and that the price of the using printing machine (capital) is Php 1700/hour and that the wage of each worker is Php 500/hour. Solve for the conditional input demand and the total cost of production per day (assuming that there are 8 hours in one working day).arrow_forwardQuestion a) The average cost function of a competitive firm is AC= 5/Q+5+9*Q. The optimal quantity is: 10. How much is the profit? b) The average cost function of a competitive firm is AC= 3/Q +8 +9*Q The optimal quantity is: 3 How much is the profit? c) The marginal utility of x is 100-5x, and that of y is 200- 6y. The price of x is 1, the price of y is 2, the income of the consumer is 100. How many of y is there in the optimal basket?arrow_forward
- Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.arrow_forwardMindy's salon is a small business that acts as a price taker (MR=P). The prevailing market price for each haircut is $20. Mindy's cost are given by Total cost = 0.1q^2 + 10q + 50 where q = the number of customers a day. a. How many customers should Mindy choose to maximize profit? b. Calculate Mindy's maximum daily profit. c. Graph these results, and label Mindy's supply curve.arrow_forwardOn the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.arrow_forward
- Can these be answered as well? Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p?arrow_forwardPlease Show Each and Every Working VERY CLEARLY. There are NO multi-questions here, only just multi-PART questions which are CONNECTED to each other, and hence, Please do NOT Leave any, Thank You! Profit Maximisationarrow_forwardA firm sells its product i two different markets. the inverse demand in market A is PA=72-5QA & in market B, it is PB=60-3QB.it has fixed cost of 72.each unit it produces costs 12 that is marginal cost equals 12.to maximize profits, what quantities of output will be sold in each market & what will total profits be?arrow_forward
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