Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter B, Problem 10E
To determine
To evaluate the optimal solution to the set of simultaneous equations in I petroleum
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Uver is a ride-sharing service that has become very popular in large cities. In one of these large cities, Uver is trying a new model: selling a bundle of 10
rides per week (instead of charging for each ride). Let y stand for the number of bundles, and suppose the weekly cost of providing a bundle of 10 rides
is given by the following function:
c(y) -10y²+200y+ 500.
Assume all Uver drivers have the same cost function.
4th attempt
See Hint
The market for Uver rides in this city is competitive. Suppose there are 158 Uver drivers in the city. If the price of a bundle of rides is
$164, the number of bundles of rides that will be provided is
bundles.
I have seen solutions for this question that include solving by matrices and row reduction. Will both these methods give the same answer?
The cost of controlling carbon dioxide emissions [C(E)] at a firm goes up rapidly as the amount
of emissions (E) increase. Let's assume the relationship is defined by the function below.
C(E)= 5000+ 40E +2E² E20
where E is measured in tonnes per year and C is measured in dollars per year.
a) Determine the Marginal Cost function for controlling carbon dioxide emissions and find
the marginal cost at 50 tonnes of emissions:
b) Determine the Average Cost Function for controlling carbon dioxide emissions and find
the tonnes of emissions at minimum average cost.
c) The government is charging a tax of $270 for every tonne of carbon dioxide emitted. At,
50 tonnes of emissions, is it profitable for the firm to control emissions on its own or pay
the carbon tax?
Chapter B Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Knowledge Booster
Similar questions
- Use the functions given below to solve the problem. C(x) represents the cost, in dollars, of x units of a product and R(x) represents the revenue, in dollars, from the sale of x units. Find the number of units that must be produced and sold in order to break even, C(x) = 72,000 + 43x and R(x) = 47x The number of units that must be produced and sold in order to break even is units.arrow_forwardThe wage rate of Zeta Corp. employees is 20 million per month, while the cost of one unit of machine is 80 million per month. Currently, Zeta Corp. produces 100 units of output and employs 20 employees and uses 5 units of production machines. This combination of factors of production is the most efficient for the company. So If Zeta Corp. wants to increase its output to 200 units but it cannot change its number of machines (from 5 units), what is the optimal number of employees and production costs of Zeta Corp.?arrow_forwardMarket research for a certain ice cream company indicates that if the price per cup of ice cream is P50.00, the demand will be 1200 cups, whereas if the price is increased to P60.00, the demand will be 1100 cups. Therefore, at a production level of 200 cups of ice cream, the revenue generated by the company would be $130 for each additional cup of ice cream produced. Now, suppose it is known that the total cost of production of x cups of ice cream is given by C(x) = 3x + 25,500. (a) Find the value(s) of x at the break-even points. (b) Use marginal analysis to approximate the profit from the sale of the 500th cup of ice cream. Compare this value with the exact profit from the sale of the 500th cup.arrow_forward
- A company estimated that the relationship between the unit price and demand per month for a potential new product is approximated by P = $ 100 – $ 0.1D. The company can produce the product by increasing fixed costs $ 17,500 per month, and the estimated variable costs is $ 40 per unit. What is the optimal demand, D*, and based on this demand, should the company produce new product? Why? a) Work out the complete solution by differential calculus, starting with formula for profit or loss per month b) Solve graphically for an approximate answerarrow_forwardAn Accra Chemical Factory discharges waste products into a river. These wastes kill many tilapia that are swimming upstream to spawn. While there will no doubt be other ecological damages from the chemical effluent, we wish to focus on those of the fishery. Let E be the tonnes of chemical effluent discharged per month. The equation for Marginal Damages (MD) is MD = 6E. The firm’s Marginal Abatement Cost (MAC) is given by MAC = 800 – 10E. a. Sketch the MD and MAC functions graphically on the same axes. b. Suppose E0 is the point where MAC = 0. Find the total damages (TD) to fishery by the factory per month.arrow_forwardAn Accra Chemical Factory discharges waste products into a river. These wastes kill many tilapia that are swimming upstream to spawn. While there will no doubt be other ecological damages from the chemical effluent, we wish to focus on those of the fishery. Let E be the tonnes of chemical effluent discharged per month. The equation for Marginal Damages (MD) is MD = 6E. The firm’s Marginal Abatement Cost (MAC) is given by MAC = 800 – 10E. a. Suppose the government invokes a liability law that requires polluters to compensate those damaged in an amount equal to the damages caused. Will the factory change its emission levels in response to the liability laws? Explain. b. If E* is the socially efficient level of emission, prove that reducing effluent to E* is a better strategy for the chemical factory than not reducing waster discharged and staying at E0.arrow_forward
- Consider the following function: f(x,y,w) =(x2/y) + (2w2/x). Is this homogeneous? If so, to what degree? Please show the steps to solving this.arrow_forwardPepper farming is carried out in a greenhouse. Proceeds from the sale of pepper, R,dollars per square meter is determined by the following function. R = 5T (1-e^-x) where T is the temperature set in the greenhouse (Celsius, C^0)and the amount of fertilizer per square meter (kilogram, kg) the costs are as follows: fertilizer cost per square meter is 20?, heating cost is 0.10^2.According to this information a) type the profit function of the manufacturer,?(?, ?).B) determine the end points of the profit function.c) show which endpoints you specify or which ones give the highest amount of fertilizer with the temperature value that makes the profit.arrow_forwardIn the Heidman’s Department Store problem of Unit 2 of this module, suppose that the following transition matrix is appropriate:arrow_forward
- Green et al. (2005) estmate the supply and demand curves for Californa processod tomatoes. The supply function is: \[ \ln \left(Q_{s}\right)=0.200+0.550 \ln (p) \] whereQis the quantify of processing tomatoes in milions of tons per year andpis the price in dollars per ton. The demand function is: \[ \ln \left(Q_{d}\right)=2600-0.200 \ln (p)+0.150 \ln \left(p_{1}\right) . \] wherep1is the price of tornato paste (which is what processing tomatoes are used to produce) in dollars per ton. Supposept=$119Determine how the equilerium price and quantity of processing tomatees change if the price of tomato pasise tails by16%. If the price of tomato paste fals by18%, then the equaborium price will by 5 (Enter a numene response using a real number rounded to two decimal places)arrow_forwardCould I have some help deriving the solutions? I’m confused given that it isn’t a standard cobb Douglas functionarrow_forwardThe output (Q) of a production process is a function of two inputs (L and K) and K is given by the following relationship: Q = 0.50LK− 0.10L2− 0.05K2 The per-unit prices of inputs L and K are $20 and $25, respectively. The firm is interested in maximizing output subject to a cost constraint of $500. Use the lagrangian optimization techniques to find the following: How many units of L and K should be used by the firm? What is the total output of this combination? What is the marginal rate of substitution between L and K?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning