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
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Question
Chapter B, Problem 2E
To determine
To evaluate the total, marginal and average profit functions from the table given in the previous question
To determine
To evaluate theplotting of the total profit and marginal profit functions in a single graph.
To determine
To evaluate thatif the policies described in part (a) and part (b) are likely to be successful
To determine
To evaluate thatif the policies described in part (a) and part (b) are likely to be successful
To determine
To evaluate the total profit at the profit maximizing output level
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Students have asked these similar questions
The demand function and total cost function for a product are
6P = 660 − 3Q, TC = 80 − 20Q2 + 600Q
(a) Write down expressions for:
(i) average cost, (ii) marginal cost, (iii) total revenue, (iv) marginal revenue, (v) profit.
(b) Determine the values of Q for which total cost is a maximum. Calculate the maximum costs. Calculate the profit when total costs are a maximum.
(c) Determine the value of Q for which profit is a minimum. What is the minimum profit?
The total revenue function for a product is given by
R=655x
dollars, and the total cost function for this same product is given by
C=19,250+70x+x2,
where C is measured in dollars. For both functions, the input x is the number of units produced and sold.
a. Form the profit function for this product from the two given functions.
b. What is the profit when
25
units are produced and sold?
The total cost and the total revenue (in dollars) for the production and sale of x ski jackets are given by C(x) = 28x + 20,160 and R(x) = 200x - 0.2x2 for 0sxs 1000.
Find the value of x where the graph of R(x) has a horizontal tangent line.
Find the profit function P(x).
Find the value of x where the graph of P(x) has a horizontal tangent line.
Graph C(x), R(x), and P(x) on the same coordinate system for 0 sxs 1000. Find the break-even points. Find the x-intercepts of the graph of P(x).
Chapter B Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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- Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C (z), the cost of producing z items (of whatever they are selling). This question deals with just the cost function C (z). Problem Set question: The cost, in dollars, of producing z units of a certain item is given by C (z) = 5z – 8/I – 3. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost is Numberarrow_forwardA factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both functions of the number of tires, n.a) Describe what is meant by C'(4) = 8b) Generate a mathematical equation, using function notation, to model the following statements: for (b) + (c) "The marginal revune for 15 tires sold decreases by $1."c) "The revenue at 3 tires equals the change in cost at 5 tires"arrow_forwardThe total cost and the total revenue (in (A) dollars) for the production and sale of x ski jackets are given by C(x)=22x+22,200 and R(x)=200x-0.2x² for 0 sxs 1000. Find the value of x where the graph of R(x) has a horizontal tangent line. Find the profit function P(x). (B) (C) Find the value of x where the graph of P(x) has a horizontal tangent line. (D) Graph C(x), R(x), and P(x) on the same coordinate system for 0 sxs 1000. Find the break-even points. Find the x-intercepts of the graph of P(x). (A) R(x) has a horizontal tangent line at x (B) The profit function P(x- (C) P(x) has a horizontal tangent line at x -0 (D) Choose the correct graph of C(x), R(x), and P(x) graphed together. OA AY 50000- 38700 22200 10000+ 0 0 Rox) PIN Q Ca 500 1000 E What are the break-even points? OA (150,25500) and (740.38480) OB. (225,23970) and (629,34632) OC. (150,26500) and (629,38480) D. (300.28050) and (629,38490) OB. 50000 33200 22200 10000 04 Rx) A Poo 500 1000 du OC. 50000- 33200 22200- 10000 0 0…arrow_forward
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