ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- A manufacturer of upholstery can sell 2121 yards of fabric at a price of $3.11$3.11 per yard. If the price is $1.85$1.85, she can sell 3535 yards. The total cost of manufacturing x yards of fabric is C(x)=0.6x+36C(x)=0.6x+36 dollars. Step 1 of 3 : Assuming the demand function is linear, find an equation for D(x)D(x). Do not round your answer.arrow_forwardA firm has a cost function of C = 1000 + 20Q + 1/10Q2a) Estimate the firm’s demand function. You may assume that the slope is a wholenumber, and the intercept is a multiple of 10. b) Find the firm’s revenue function. You do not need to draw it. c) Find the marginal revenue function, and draw it on a copy of the graph. d) Find and draw the marginal cost function.e) Use your results from parts (c) and (d) to find the profit-maximising level of output.(3 marks)f) Find the market price at this level of output.arrow_forwardThe cost function for Acme Laundry is C(q)=50+30q+q2, where q is tons of laundry cleaned. What q should the firm choose so as to maximize its profit if the market price is p?arrow_forward
- Please help with h.arrow_forwardA linear revenue function is R = 86x. (Assume R is measured in dollars.) (a) What is the slope m? m = Let C(x) = 7x + 550 and R(x) = 28x. (a) Write the profit function P(x). P(x) = (b) What is the marginal revenue MR? MR = What does the marginal revenue mean? ○ Each additional unit sold yields this many dollars in revenue. ○ If the number of units sold is increased by this amount, the revenue decreases by $1. ◇ Each additional unit sold decreases the revenue by this many dollars. ◇ If the number of units sold is increased by this amount, the revenue increases by $1. (c) What is the revenue received from selling one more item if 50 are currently being sold? $ What is the revenue received from selling one more item if 100 are being sold? $ (b) What is the slope m of the profit function? m = (c) What is the marginal profit MP? MP = (d) Interpret the marginal profit. ○ Each additional unit sold increases the profit by this much. ○ This is the smallest number of units that can be sold in…arrow_forwardThe total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30q2 − 12.85q + 20 + 400/q. The total cost function is C(q) = 1/30q3 – 12.85q2 + 20q + 400 . The profit function is Π(q)= –1/30q3 + 0.85q2 + 20q – 400 (i) Determine the level of output for which the firm’s profit is maximized. (ii) What is the firm's maximum profit?arrow_forward
- The cost, in dollars, to produce x designer dog leashes is C(x) R(x) 7x + 10, and the revenue function, in dollars, is - 3x? + 55x - Find the profit function. P(x) = -322 + 48x – 10 Find the number of leashes which need to be sold to maximize the profit. 8. Select an answer Find the maximum profit. 182 Select an answer > Find the price to charge per leash to maximize profit. Select an answer > V Select an answer What would be the be much for a leash? dogs too much money for a lea leashes dollarsarrow_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_forwardThe company AffordableStuff sells cell phones. The marginal cost for each cell phone is given by the equation C(x) = 0.01x² – 3x + 229. a is the number of cell phones manufactured and sold. The marginal revenue function is R(x) = 429 – 2.x. Both C(x) and R(x) are given in dollars. a) Where do these curves intersect? What do those intersection points mean? b) Find the area between the curves, using end points that make sense. Round to the nearest cent. c) What does the area under the curve mean in this case?arrow_forward
- Problem 3 A furniture maker builds and sells wooden benches. The demand function for the benches is given by the function p = 1600 -x where p is the price per bench and x is the number of benches sold. The furniture maker also knows that the fixed costs for the business are $20,000 and each bench costs $75 to make. Part a) Create a function that represents revenue as a function of the number of benches produced and create a function that represents the cost as a function of the number of benches produced. Make sure to label your input and output variables. Part b) How many benches should be produced and sold in order to maximize revenue? What price should the furniture maker sell them? (Make sure to show your work) Part c) How many benches should be produced and sold in order to maximize profit? What is the maximum profit? (Make sure to show your work)arrow_forwardTotal profit is defined as total revenue, R(x), minus total cost, C(x), and is given by the function P(x)=R(x)-C(x). Given R(x)=59x-0.4x^(2) and C(x)=2x+15, find each of the ollowing. P(x) R(80),C(80), and P(80)arrow_forwardFor a certain company, the cost function for producing items is C (x) = 30 x + 150 and the revenue function for selling æ items is R(x) = -0.5(x - 100)2 +5,000. The maximum capacity of the company is 160 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C (x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit! Answers to some of the questions are given below so that you can check your work. 1. Assuming that the company sells all that it produces, what is the profit function? P(x) = Hint: Profit = Revenue - Cost as we examined in Discussion 3. 2. What is the domain of P(x)? Hint: Does calculating P(x) make sense when x = -10 or x = = 1,000? 3. The company can choose to produce either 70 or 80 items. What is their profit for each case, and which level of production should they choose? Profit when producing 70 items = Number Profit when producing 80…arrow_forward
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