Given the profit function π = PxQ - C(Q), maximize profits and explain its relationship with...
Given the profit
function π = PxQ - C(Q), maximize profits and explain its
relationship with the figure below. Are these models useful to
managers, explain?
Homework Answers
In the figure
MTB is marginal total benefit curve ,
At profit maximization, net benefit = total benefit - total cost
Is miximized.
Thus FOC: MB = MC
As MB is slope of MTB curve , MC is slope of total cost curve, hence at equilibrium the two curve has same slope
& The difference between MTB & TC is maximized.
Add Answer to:
Given the profit
function π = PxQ - C(Q), maximize profits and explain its
relationship with...
Question 2. (a) Suppose there is a firm producing two goods. The profit function π is...
Question 2. (a) Suppose there is a firm producing two goods. The profit function π is function of Q1 and Q2 Find Qi and Q2 to maximize total profit. Use the sccond-order conditions to verify that profits are maximized for these extreme values. What is the maximum of the profit π
Suppose a company's revenue function is given by R(q) = - q° + 200q and its...
Suppose a company's revenue function is given by R(q) = - q° + 200q and its cost function is given by C(q) = 160 + 11q, where q is hundreds of units sold/produced, while R(q) and C(q) are in total dollars of revenue and cost, respectively. A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.) MP(q) B) How many items (in hundreds) need to be sold to maximize profits?...
a. How a monopoly maximizes its profit? Explain the procedure a monopoly takes to maximize its...
a. How a monopoly maximizes its profit? Explain the procedure a monopoly takes to maximize its profit. b. Please explain why a monopoly does not have a supply curve. c. Is it true that all monopolies earn positive profits? Explain your answer.
Find the value of Q when Firms A and B Cournot compete to maximize profits (i.e....
Find the value of Q when Firms A and B Cournot compete to
maximize profits (i.e. when they simultaneously determine profit
maximizing output).
Firm A and Firm B compete in the sale of a product with market inverse demand given by P(0) = 260-Q, where Q is market output, and Q = 9A + 96 (9A = Firm A's output, 93 = Firm B's output). Firm A's Total Cost function is given by TCA9A) = 209A and Firm B's is...
Suppose the total cost function for a firm is given by C (Q) = 100 +...
Suppose the total cost function for a firm is given by C (Q) = 100 + Q2. If the firm sells its output in a perfectly competitive market at a price of $10, what level output should the firm produce to maximize profits or minimize losses? What will be the level of profits or losses if the firm makes the optimal decision?
1. A monopolist has the profit function π(Q)-PlQIQ-TC(Q). Derive the inverse elasticity rule: P- MC1
1. A monopolist has the profit function π(Q)-PlQIQ-TC(Q). Derive the inverse elasticity rule: P- MC1
The following is your firms profit function π = -3Q3-18Q2 + 2880Q-125. What output Q maximizes...
The following is your firms profit function π = -3Q3-18Q2 + 2880Q-125. What output Q maximizes profit?
16. Given the following profit function: π(x) = x3-6x2-3x + 25 where x is the number...
16. Given the following profit function: π(x) = x3-6x2-3x + 25 where x is the number of days of producing the good. a. interpret (5) b, interpret π, (5) c. based on b, what would you predict sales to be on day 6. d. Using information from a-c, would predicted sales on day 6 be an overestimate or under estimate? Explain?
Economic profits [ Π(q) ] are: Group of answer choices b. the difference between total revenue...
Economic profits [ Π(q) ] are: Group of answer choices b. the difference between total revenue and total costs. a. the opportunity costs of all inputs. c. a rate of profit that is just sufficient to keep owners and investors satisfied. d. anything greater than the normal opportunity cost of investing.
3. If a price-taking firm's production function is given by q = 3vk, then its profit...
3. If a price-taking firm's production function is given by q = 3vk, then its profit function is given by (b) 亚如
Question 2. (a) Suppose there is a firm producing two goods. The profit function π is function of Q1 and Q2 Find Qi and Q2 to maximize total profit. Use the sccond-order conditions to verify that profits are maximized for these extreme values. What is the maximum of the profit π
Suppose a company's revenue function is given by R(q) = - q° + 200q and its cost function is given by C(q) = 160 + 11q, where q is hundreds of units sold/produced, while R(q) and C(q) are in total dollars of revenue and cost, respectively. A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.) MP(q) B) How many items (in hundreds) need to be sold to maximize profits?...
Find the value of Q when Firms A and B Cournot compete to
maximize profits (i.e. when they simultaneously determine profit
maximizing output).
Firm A and Firm B compete in the sale of a product with market inverse demand given by P(0) = 260-Q, where Q is market output, and Q = 9A + 96 (9A = Firm A's output, 93 = Firm B's output). Firm A's Total Cost function is given by TCA9A) = 209A and Firm B's is...
1. A monopolist has the profit function π(Q)-PlQIQ-TC(Q). Derive the inverse elasticity rule: P- MC1
16. Given the following profit function: π(x) = x3-6x2-3x + 25 where x is the number of days of producing the good. a. interpret (5) b, interpret π, (5) c. based on b, what would you predict sales to be on day 6. d. Using information from a-c, would predicted sales on day 6 be an overestimate or under estimate? Explain?
3. If a price-taking firm's production function is given by q = 3vk, then its profit function is given by (b) 亚如
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