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Exercise 1. You own a firm and the demand for your products is given in the table below. The marginal cost of productio...
Exercise 1. You own a firm and the demand for your products is given in the...
Exercise 1. You own a firm and the demand for your products is given in the table below. The marginal cost of production is constant: MC=$1.50. Fixed costs are 0. a. find the price that maximizes profit. What is the maximum profit? b. find the price that maximizes revenue. What is the maximum revenue? TC Profit Price Quantity | Total Revenue | MR | 7 1 6 2 53 4 4 MC $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50
1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of produc...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR =...
Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR = 64 - 8(Q) Marginal cost: MC = 2(0)+10 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? 2. At what price (P) will this firm maximize profit 3. What is the total revenue (TR) earned at this output level 4. What is the total cost (TC) accrued at this output 5. What profit is earned Assume...
The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at...
The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) Marginal Revenue Marginal (MR) Cost (MC) 0 10 9 1 2 8 2 3 7 3 4 6 4 5 5 5 A profit-maximizing monopolist will produce units and set a price of $
a firm in perfectly competitive market sells all its products Q at constant price p (1)A...
a firm in perfectly competitive market sells all its products
Q at constant price p
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average...
The graph below shows a monopolist's demand (D), marginal
revenue (MR), marginal cost (MC), and average total cost (ATC)
curves. Management wants to adjust the production output quantity
to maximize the firm's profits. What quantity should the firm aim
for?
Give your answer by dragging the Q line to a new position to mark
the quantity at which profit is as large as possible.
Price and cost ATC MC MR Quantity
12. Given the demand function is Q 180 5P, find the following: a The revenue finction...
12. Given the demand function is Q 180 5P, find the following: a The revenue finction b. The revnue maximizing output and price c. The own-price elasticity of demand at P $80 d. The level ofe and P where the own-price elasticity of demand (ED) is equal to one, in absolute value. What is the nature of total revenue when lEDl 1? 13. Assume that the demand function is Q demand at each of the following prices a. b. $7...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
The table below gives you information on the revenue and cost structures of the Vaca family...
The table below gives you information on the revenue and cost structures of the Vaca family dairy farm. The farm is a monopolist in the local market. How does the farm decide the number of gallons of milk to produce and the market price per gallon to charge? 1. In column 6, identify which of the 2 effects dominate as the quantity of output is increased: Price or Output. Assume that there is no fixed cost, and that the marginal...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC = q +35 MR = 560 + 22q-q? Where q is the quantity produced and the firm's break-even is 5 units per week You are Required to 1. determine the total cost and the total revenue function in terms of q. (6 marks) II. estimate the output at which profit is maximize (6 marks) III. calculate...
Exercise 1. You own a firm and the demand for your products is given in the table below. The marginal cost of production is constant: MC=$1.50. Fixed costs are 0. a. find the price that maximizes profit. What is the maximum profit? b. find the price that maximizes revenue. What is the maximum revenue? TC Profit Price Quantity | Total Revenue | MR | 7 1 6 2 53 4 4 MC $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR = 64 - 8(Q) Marginal cost: MC = 2(0)+10 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? 2. At what price (P) will this firm maximize profit 3. What is the total revenue (TR) earned at this output level 4. What is the total cost (TC) accrued at this output 5. What profit is earned Assume...
The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) Marginal Revenue Marginal (MR) Cost (MC) 0 10 9 1 2 8 2 3 7 3 4 6 4 5 5 5 A profit-maximizing monopolist will produce units and set a price of $
a firm in perfectly competitive market sells all its products
Q at constant price p
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
The graph below shows a monopolist's demand (D), marginal
revenue (MR), marginal cost (MC), and average total cost (ATC)
curves. Management wants to adjust the production output quantity
to maximize the firm's profits. What quantity should the firm aim
for?
Give your answer by dragging the Q line to a new position to mark
the quantity at which profit is as large as possible.
Price and cost ATC MC MR Quantity
12. Given the demand function is Q 180 5P, find the following: a The revenue finction b. The revnue maximizing output and price c. The own-price elasticity of demand at P $80 d. The level ofe and P where the own-price elasticity of demand (ED) is equal to one, in absolute value. What is the nature of total revenue when lEDl 1? 13. Assume that the demand function is Q demand at each of the following prices a. b. $7...
The table below gives you information on the revenue and cost structures of the Vaca family dairy farm. The farm is a monopolist in the local market. How does the farm decide the number of gallons of milk to produce and the market price per gallon to charge? 1. In column 6, identify which of the 2 effects dominate as the quantity of output is increased: Price or Output. Assume that there is no fixed cost, and that the marginal...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC = q +35 MR = 560 + 22q-q? Where q is the quantity produced and the firm's break-even is 5 units per week You are Required to 1. determine the total cost and the total revenue function in terms of q. (6 marks) II. estimate the output at which profit is maximize (6 marks) III. calculate...
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