Question

3. 3M, a U.S. manufacturer of Metered Dose Inhalers (MDIs), has the following profit equation: (q) = R(q)-C(q) = 80 - (90 + 4
(d) (8 points) What is the firms profit at this optimal level of output? (e) (10 points) Should the firm produce in the shor
0 0
Add a comment Improve this question Transcribed image text
Answer #1

W = 909 - 90 - 10 92 140 (2) - 90 - 10 (2) 1 = Bu- 90 - 40 12-50 (6. If from shut down the production, then firm has the to b

Add a comment
Know the answer?
Add Answer to:
3. 3M, a U.S. manufacturer of Metered Dose Inhalers (MDIs), has the following profit equation: (q)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • 3. 3M, a U.S. manufacturer of Metered Dose Inhalers (MDIs), has the following profit equation: (q)...

    3. 3M, a U.S. manufacturer of Metered Dose Inhalers (MDIs), has the following profit equation: (q) = R(q)- C() = 80g -- (90 + 409 + 109?) where g is in millions, (a) (21 points) Identify the fixed costs, variable costs, and marginal costs for 3M. (b) (7 points) What level of output (9) maximizes profit? (c) (16 points) Using the optimal level of output (m), calculate the revenue for 3M and calculate the variable cost (a) (8 points) What...

  • 11.7. A monopolist operates with the following data on cost and demand. It has a total...

    11.7. A monopolist operates with the following data on cost and demand. It has a total fixed cost of $1,400 and a total variable cost of Q”, where Q is the number of units of output it produces. The firm's demand curve is P= $120 - 20. The size of its sunk cost is $600. The firm expects the conditions of demand and cost to continue in the foreseeable future. a) What is the firm's profit if it operates and...

  • Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore...

    Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore marginal costs of MC = 3/4Q. Assume the market for this firm’s goods is perfectly competitive with a market price, P = 24. (a) Given the information above, is the firm in the short-run or long-run? (1 point) (b) Write down the firm’s marginal revenue equation. (1 points) (c) How many units should the firm produce if it wants to maximize profit? (3 points)...

  • Chapter 9 Homework Chapter 9 Homework Name 1. (1.5 points) For each of the following decisions...

    Chapter 9 Homework Chapter 9 Homework Name 1. (1.5 points) For each of the following decisions faced by a firm, write the rule/condition that the firm should follow to make a decision. a. What quantity of output will maximize a firm's profit? b. When should a firm shut down in the short run? c. When should a firm exit a market in the long run? 2. (1 point) A firm participating in a competitive market has costs shown in the...

  • Please answer parts F, G, H, I. Thank you in advance MC=5 4. (51 points) The...

    Please answer parts F, G, H, I. Thank you in advance MC=5 4. (51 points) The inverse demand function a monopoly faces is P = 100 – Q. The firm's cost curve is TC(Q) = 10 +5Q (a) (3 points) What is the monopolist's marginal revenue curve? TR=(P)(Q) TR=(100-Q)(Q) MR=100-2Q (b) (3 points) What is the monopolist’s marginal cost curve? (c) (3 points) What level of output maximizes the monopolist's profits? MR=MC -> 100-2Q=5 –> Q=47.5 Units (d) (4 points)...

  • 2. (20 pts) The figure below summarizes the demand and cost for a perfectly competitive firm....

    2. (20 pts) The figure below summarizes the demand and cost for a perfectly competitive firm. Based on it, answer questions a-h. SMC 10 SAC ANSC 8 AVC a (1,000) 0 2 3 45 6 7 89 0 12 13 a. (2 pts) What is the firm's optimal level of output in the short run? b. (2 pts) What price should this firm charge in the short run? c. (2 pts) What is the firm total revenue at this level...

  • The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru

    3) Perfect Competition (5 points) The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru. The alpaca wool industry is competitive.For each market price given below, give the profit-maximizing output level and state whether Alpacky's profits are positive, negative, or zero. Also state whether Alpacky should produce or shut down in the short run. a. If the market price is $22... i. what...

  • I know that A) Q*=0 and firm should shut down and B) profits = -$1,000. But...

    I know that A) Q*=0 and firm should shut down and B) profits = -$1,000. But do not understand how to get C. PLEASE SHOW ALL STEP-BY-STEP WORK ON HOW TO SOLVE FOR C) LEVEL OF OUTPUT WHERE AVC IS MINIMIZED? 3. A perfectly competitive firm sells its product for $100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(Q)= -20Q +500 MC(Q) = Q2 - 40Q+500 a. Determine...

  • Question 4: Novotel Lotus provides catered meals, and the catered meals industry is perfectly competitive. Novotel...

    Question 4: Novotel Lotus provides catered meals, and the catered meals industry is perfectly competitive. Novotel Lotus machinery costs $100 per day and is the only fixed input. The firm's variable cost consists of the wages paid to the cooks and the food ingredients. The variable cost per day associated with each level of output is given in the accompanying table. Quantity of meals VC TC MC AVC ATC $200 $300 $480 $700 $1000 4.1. Calculate the total cost, the...

  • The market for candy is perfectly competitive, and the current market price of candy is $10....

    The market for candy is perfectly competitive, and the current market price of candy is $10. A particular firm has a short-run marginal cost of production of MC = 0.2q, where q is the number of bicycles produced by the firm. a. If it is optimal for the firm to produce a positive amount of output in the short run, how much should it produce? b. Suppose that the firm has fixed costs of $30, and its average variable cost...

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