ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- I NEED THE ANSWER!!! THANK YOU!!!arrow_forwardConsider the following function: Ĉ = 0.03q + 6 + 200/q - determine the approximate cost to increase production from 200 units to 201 units - determine the function of marginal costarrow_forwardYour college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 60 + 0.10x + 0.001x² dollars. (a) Calculate the marginal profit function, in dollars per copy. P'(x) = (b) Compute the marginal profit, if you have produced and sold 500 copies of the latest edition. When you produce and sell 500 copies, the marginal profit is dollars per copy. Interpret the results: The approximate loss from the production and sale of the 501st сорy is dollars.arrow_forward
- Q. The Ali Baba Co. is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q = 112,000 – 500P + 5M Where Q = number of carpets, P = price of carpets (dollars per unit), and M = consumers’ income per capita. The estimated average variable cost function for Ali Baba’s carpets is AVC = 200 – 0.012Q + 0.000002Q2 Consumer’s income per capita is expected to be $20,000 and total fixed cost is $100,0000. a. How many carpets should the firm produce to maximize profit? b. What is the profit-maximizing price of carpets? c. What is the maximum amount of profit that the firm can earn selling carpets? d. Answer parts a through c if consumers’ income per capita is expected to be $30,000 instead Please answer d only.arrow_forwardDo not use chatgpt.arrow_forwardIf C = 0.0001Q2 + 3Q + 6000 is a total-cost function, find the marginal cost when Q = 100.arrow_forward
- 4 parts plsarrow_forwardFor the cost and price functions below, find a) the number, q, of units that produces maximum profit; b) the price, p, per unit that produces maximum profit; and c) the maximum profit, P. C(q) = 90+12q; p= 64-2q a) The number, q, of units that produces maximum profit is q = b) The price, p, per unit that produces maximum profit is p=$ c) The maximum profit is P = $.arrow_forwardGiven Cost and Revenue functions C(q)=q3−10q2+52q+5000 and R(q)=−3q2+2400q, what cost is incurred when marginal profit is $0?arrow_forward
- Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: (i) the marginal cost is ____ (iI) the average cost is ____arrow_forwardYou are given the following cost functions: TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3 TC=100+60Q+3Q2TC=100+60Q+3Q2 TC=100+60QTC=100+60Q b). In each case, indicate the point at which diminishing returns occur. also indicate the point of maximum cost efficiency (i.e., the point of minimum average cost). c). For each function, discuss the relationship between marginal cost and average variable cost and between marginal cost and average. Discuss the relationship between average variable cost and average cost.arrow_forward600 550 500 450 400 360 350 300 270 250 200 150 100 50 0 ATC> MC a 6 10 19. What is the Average Total Cost at Q=6? a) 7.50 b) 12 c) 20 d) 25 e) 45 f) 100 g) 120 h) 160 b 20 O ATC=MC 30 TC ATC< MC 37 40arrow_forward
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