Homework Answers
Price is fixed at 176,000 and quantity is maximum at 11. Hence revenue is 176,000 * Q where Q can be maximum at 11. This shows that firm will produce 11 planes because this will maximize revenue. Thus, the answer is 11 airplanes
Profit at this stage = 176,000*11 - 1,938,000 = -2 thousand
Profit is maximized when MR = MC. Here MR = MC = 176 thousand and MC = 145 thousand (closest) when Q is 8. Hence profit maximizing quantity is 8 airplanes
Profit = 176,000*8 - 1,233,000 = 175 thousand
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Suppose a firm has the ability to produce soap, toothpaste, or both. If the firm produces qs units of soap and no toothpaste, then the total cost of production will be $21 thousand. If instead the firm produces y units of toothpaste and no soap, then the total cost of production will be $13 thousand. However, if the firm produces both 95 units of soap and qr units of toothpaste, then the firm's total cost of production will be 591...
Please help me with the last part of the question. I need steps.
Thanks a lot.
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 100 + 2q², 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...
The answers I filled are wrong.
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