The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ Number

Let's say jacky has a demand function for a product made in Ney york city given that the function D(q)=-1.15q+270, where q is the number of items in demand and D(q) is the price per item, in dollars, that can be charged when q units are sold. Say that the fixed costs of production for the item is $5,000 and variable costs are $10 per item produced. If 100 items are produced and sold, what are the finds :

4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) 120 1 210 2 270 3 315 4 380 5 475 630

The weekly marginal cost of producing x pairs of tennis shoes is given by the following​ function, where​ C(x) is cost in dollars.   C′(x)=15+500x+1   If the fixed costs are ​$4,000 per​ week, find the cost function. What is the average cost per pair of shoes if​ 1,000 pairs of shoes are produced each​ week?

A street musician bought a new fiddle for $850.00. Assume she breaks 1 string each hour and can buy new strings for $1.00 each. On average, she makes $18.00 per hour. (a) Find the cost function C(x) associated with playing the fiddle for x hours. C(x)= (b) Find the revenue function R(x) for the amount of revenue gained from x hours of playing R(x) = (c) Find the profit function P(x) for the amount of profit gained from x hours of playing P(x) = (d) Use the functions above to complete the following sentence. She will need to work hours to break even

To produce a recorded DVD, a firm uses one blank disk D and the services of a recording machine M for one hour. The production function in this case is given by: Q = min{D, M}(a) Using this production function, find the firm’s demand function for recording machine-hours M.(b) ) Draw the total product, average product, and marginal product of M curves for the production function identified(c) Let PM denote the hourly price of renting the recording machine M and PD denote the price of one blank disk. Use your answer from (b) to calculate the firm’s short-run total, average, and marginal cost functions.

(a) Find the conditional input demand function for inputs 1 and 2, as well as the cost function for this firm. (b) What is the firm's marginal cost when it is producing y units of output?

Catalina Films produces video shorts using digital editing equipment (K) and editors (L). The firm has the production function Q(K, L)=KxL, where Q is the hours of edited footage. The wage is $25, and the rental rate of capital is $50. The firm wants to produce 3,000 units of output at the lowest possible cost.a) Find the marginal product of each input.b) Determine whether the production function exhibits diminishing marginal product to each input.c) Find the marginal rate of technical substitution(MRTSLK)d) How does MRTSLK change as more L, is used holding output constant.e) Find the least costly combination of labor and capital to produce 3000 units

Suppose that the profit from the sale of Kisses and Kreams is given by the following, where x is the number of pounds of Kisses and y is the number of pounds of Kreams. P(x, y) = 10x + 6.6y - 0.001x² -0.025y² dollars You know from previous experience that, for such a profit function, profit will be maximized at the critical point of P(x,y). (a) Determine the amounts of Kisses and Kreams that will maximize profit. pounds of Kisses pounds of Kreams (b) What is the maximum profit? (Round your answer to two decimal places.) $

The Lead Zeppelin Company produces powered and steerable lighter-than-air craft. The company’s airships are specially lined and are therefore safer than normal dirigibles. The table below shows the weekly production of dirigibles, along with the associated Average Cost and Total Revenue figures (the Average Cost and Total Revenue figures are actually in thousands of dollars, so the $15 represents $15,000, but we have left off the zeros to save space).   Quantity Average Cost Total Cost Total Revenue 0  -- 0 $0 1 $15 15 $10 2 $9 18 $20 3 $8 24 $30 4 $8.50 34 $40 5 $9 45 $50 6 $10 60 $60 7 $12 84 $70   The Lead Zeppelin Company has decided that it will produce at least 1 dirigible. Now the question becomes, how many more dirigibles should it produce to make as much profit as possible?   Use the profit-maximizing rule to explain how many dirigibles the Lead Zeppelin Company should produce to…