ZuoTi.Pro
Question

7. A manger of an engineering firm faces the following benefit and cost structure: B(Q) =...

7. A manger of an engineering firm faces the following benefit and cost structure:

B(Q) = 300Q – 6Q^2

and C(Q) = 4Q^2

What is the quantity that the manager of the firm should produce to maximize the total benefits?

. What is the quantity that the manager of the firm should produce to maximize the net benefits?

The manager is asked to determine the maximum net benefit at a net benefit maximizing level of

output. He calculates output?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
7. A manger of an engineering firm faces the following benefit and cost structure: B(Q) =...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Your firm's research department has estimated your total benefits to be TB=300Q-6Q^2 and your Total Cost...

    Your firm's research department has estimated your total benefits to be TB=300Q-6Q^2 and your Total Cost =4Q^2. What level of Q will yield the maximum benefit?

  • Suppose that the total benefit and total cost from a continuous activity are B(Q) = 76...

    Suppose that the total benefit and total cost from a continuous activity are B(Q) = 76 + 24Q – 2Q2 and C(Q) = 60 + 6Q. What level of Q maximize net benefits? At the value of Q that maximize net benefits, what is the value of marginal net benefits?

  • 4. A competitive firm faces a price of P = 120. The firm has costs c(q)...

    4. A competitive firm faces a price of P = 120. The firm has costs c(q) = . What quantity will firm the produce in order to maximize their profit? 5. A monopolist faces demand D= 120 – 2P. The firm has costs c(q) = {9?. What quantity will the firm produce in order to maximize their profit?

  • 3. Suppose the firm in monopolistic market faces the following demand function: Q = 5,000 -...

    3. Suppose the firm in monopolistic market faces the following demand function: Q = 5,000 - 125P ; and total cost function TC - 50 +0.00802 a. Write the equation for the inverse demand function. (1 pt) b. Find the marginal revenue function. (1 pt) c. How much output should the manager produce to maximize profit? What price should be charged for the output? (2 pt) d. Calculate the marginal cost function. (2 pt) e. At the output level, how...

  • A firm produces a product in a competitive industry and has a total cost function (TC)...

    A firm produces a product in a competitive industry and has a total cost function (TC) of TC(a) 60+4q+2q2 and a marginal cost function (MC) of MC(q) = 4 + 4q. At the given market price (P) of $20, the firm is producing 4.00 units of output. Is the firm maximizing profit?V What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)

  • Consider the following cost curve for a firm in a competitive industry where the market price...

    Consider the following cost curve for a firm in a competitive industry where the market price equals ​$200 C​ = 1/3q3+4q+750 What is the​ firm's marginal cost​ (MC)? MC​ = At what level of output does the firm maximize profits​ (minimize losses)? Profit is maximized at __units of output.  ​(Round your answer to two decimal​ places.) What is the​ firm's profit maximizing​ price? The​ profit-maximizing price is $___ In the​ short-run, this firm should produce ____ .

  • A competitive firm's cost of producing q units of output is C = 18 + 4q + q^2 Its corresponding m...

    A competitive firm's cost of producing q units of output is C = 18 + 4q + q^2 Its corresponding marginal cost is MC = 4 + 2q. a. The firm faces a market price p = $24. Create a spreadsheet with q = 0, 1, 2, ..... 15, where the columns are q, R, C, VC, AVC, MC, and profit. Determine the profit-maximizing output for the firm and the corresponding profit. Should the firm produce this level of output...

  • You are the manager of a firm that produces output in two plants. The demand for...

    You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 - 6Q, where Q = Q 1 + Q 2. The marginal cost associated with producing in the two plants are MC 1 = 2Q 1 and MC 2 = 4Q 2. What price should be charged in order to maximize revenues? Please document each step

  • Suppose the cost function for a firm is given byC(Q) = 60 + 4Q+ 2Q2.(a)If the...

    Suppose the cost function for a firm is given byC(Q) = 60 + 4Q+ 2Q2.(a)If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what level of output should the firm produce to maximize profits or minimize losses?(b)What will be the level of profits or losses if the firm makes the optimal decision?(c)After you’ve worked the problem, reconsider the original situation (with price of $20) but with...

  • Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost...

    Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 100+ 0 + 2q? where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q; the fixed cost, FC, is $100). If the price of a watch is $80, how many watches should you produce to maximize profits? You should produce watches. (Enter your response as an integer.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT