The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed:P = 1760 - 12QThe cost analysis department has estimated the total cost function for the poster bed asTC = (1/3)Q3 - 15Q2 + 5Q + 24,000a. Calculate the level of output that should be produced to maximize short-run profits. b. What price should be charged? c. Compute total profits at this price-output level. d. Compute the point price elasticity of demand at the profit-maximizing level of output. e. What level of fixed costs is the firm experiencing on its bed production? f. What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated?

p=D(x)=71.5−0.02xp=D(x)=71.5−0.02x dollars. The total cost for these coffee makers is given by C(x)=0.05x2+5.5x+6200C(x)=0.05x2+5.5x+6200 dollars. Determine the marginal profit for 118 coffee makers.

Economics

A company’s demand and cost functions are given by p(q)=-0.05q+525andC(q)=q3 -7q2 +85q. What price should be set if marginal profit is $0 per item?

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…

and the cost function of the second firm is , where are all positive parameters. The demand function in this industry is where α C(q₁) = A * qu C(92) = Bq₂ (A, B, a, ß) Q = Dp (D,y)

A manufacturer of mountain bikes has the following marginal cost function: C′(q)=700/0.5q+2 where qq is the quantity of bicycles produced. When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $3200, find the total cost to produce 35 bicycles.Answer: $   b) If the bikes are sold for $250 each, what is the profit (or loss) on the first 35 bikes?Answer: $ c) What is the marginal profit on bike number 36?Answer: $

Demand function is given by Q=84-2P and cost function is C(q)=25+2q+q2 1) What are the qualitative features of the costs of this cost function? i.e. average, marginal, variable, properties, and what are the key prices – shut price, breakeven price, revenue maximizing and profit maximizing price? 2) Using this cost structure and demand - how many firms are likely to operate in the long run (note: that in the long run firms tend to operate close to minimum average cost)?

A boutique chocolate manufacturer produces 2 types of chocolate, Dark chocolate, and Milk chocolate daily with a total cost function: TC = 7D + D x M + 3M where: D is the quantity of the Dark chocolate (in kgs) and M is the quantity of the Milk chocolate (in kgs). The prices that can be charged are determined by supply and demand forces and are influenced by the quantities of each type of chocolate according to the following equations: PD = 20-D + 5M for the price (in dollars per kg) of the Dark chocolate and PM 23 + 3D - M for the price (in dollars per kg) of the Milk chocolate. The total revenue is given by the equation: TR = PD XD + PM × M and the profit given by the equation Profit = TR-TC First, use a substitution of the price variables to express the profit in terms of D and M only. Using the method of Lagrange Multipliers find the maximum profit when total production (quantity) is restricted to 2023 kgs. Note D or M need not be whole numbers. Be sure to show that your solution…