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modity is P 102 2Q per unit, whereas the costs are C the profit function and...
14) The demand equation for a monopolist's product is p = 200 - 0.989, where p is the price per unit (in dollars) of pr...
14) The demand equation for a monopolist's product is p = 200 - 0.989, where p is the price per unit (in dollars) of producing q units. If the total cost c (in dollars) of producing 8 units is given by c= 0.02q2 + 2q + 8000, find the level of production at which profit is maximized. 15) The demand function for a monopolist's product is p = 100 – 39, where p is the price per unit (in dollars)...
6. The profit function of a firm is (x,y) = px +qy-ar? - By?, where p...
6. The profit function of a firm is (x,y) = px +qy-ar? - By?, where p and q are the prices per unit and ar? + By are the costs of producing and selling x units of the first good and y units of the other. The constants are all positive. (a) Find the values of x and y that maximize profits. Denote them by x* and y'. Verify that the second-order conditions are satisfied. (1) Define (p, q) =...
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximi...
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximizing quantity qm and price pm. What are the monopolist’s profits? (b) What is the value of the Lerner index at qm? (c) Find the efficient quantity and draw a graph depicting the deadweight loss under monopoly.
Isoprofit curves Profit per unit output Wage per unit output Price,p (5) Wage Demand curve (given...
Isoprofit curves Profit per unit output Wage per unit output Price,p (5) Wage Demand curve (given economy-wide demand) Units of output, (and hours of labour, n) This figure depicts the market's demand curve and the firm's isoprofit curves. Based on this information, which of the following statements is correct? Having chosen its profit-maximizing price p', the firm would then set its nominal wage level. depicts the market's demand curve and the firm's isoprofit curves. Based on this information, which of...
2 3 and 4 b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production f...
2 3 and 4
b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...
5. Suppose that the demand equation for a monopolist's product is p = 400 - 2q...
5. Suppose that the demand equation for a monopolist's product is p = 400 - 2q and the average cost function is c = 0.29 + 4 + toº, where q is number of units, and both p and c are expressed in dollars per unit. a) Determine the level of output at which profit is maximized b) Determine the price at which maximum profit occurs c) Determine the maximum profit d) If, as a regulatory device, the government imposes...
The cost function (monthly) for your company can be defined as; TC = cost per unit...
The cost function (monthly) for your company can be defined as; TC = cost per unit (AC) * quantity supplied (Q). If the cost per unit (average cost) for your firm is AC = (800/Q) – 10 +2Q: a. What is the total cost function for your firm in terms of Q? b. How would you interpret the intercept term in this function? c. What is the marginal cost function for your firm? d. At what level of output (Q)...
Problem #4: The demand equation for a product is given by p-250-0.1qdollars per unit where q is t...
Problem #4: The demand equation for a product is given by p-250-0.1qdollars per unit where q is the number of units demanded. a. If the cost of producing q units is given by C(g)-1000+80q+0.15q find the profit function. b. Use CALCULUS to estimate the cost to produce the 77th unit. How does this compare with the EXACT cost of producing the 77th unit? Include correct units. Do not round values c. Compute the marginal profit of the 100th unit. Does...
What is the level of profit? Profit equals $_______________ Suppose that a firm's production function is...
What is the level of profit? Profit equals $_______________
Suppose that a firm's production function is q=4x0.5 in the short run, where there are fixed costs of $2,000, and x is the variable input whose cost is $800 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q). The total cost of producing a level of output q is O A. C(q) = 2,000 + O B....
A firm faces the following average revenue (demand) curve: P= 135 -0.020 where Q is weekly...
A firm faces the following average revenue (demand) curve: P= 135 -0.020 where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 50Q + 25,000 Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per...
14) The demand equation for a monopolist's product is p = 200 - 0.989, where p is the price per unit (in dollars) of producing q units. If the total cost c (in dollars) of producing 8 units is given by c= 0.02q2 + 2q + 8000, find the level of production at which profit is maximized. 15) The demand function for a monopolist's product is p = 100 – 39, where p is the price per unit (in dollars)...
6. The profit function of a firm is (x,y) = px +qy-ar? - By?, where p and q are the prices per unit and ar? + By are the costs of producing and selling x units of the first good and y units of the other. The constants are all positive. (a) Find the values of x and y that maximize profits. Denote them by x* and y'. Verify that the second-order conditions are satisfied. (1) Define (p, q) =...
Isoprofit curves Profit per unit output Wage per unit output Price,p (5) Wage Demand curve (given economy-wide demand) Units of output, (and hours of labour, n) This figure depicts the market's demand curve and the firm's isoprofit curves. Based on this information, which of the following statements is correct? Having chosen its profit-maximizing price p', the firm would then set its nominal wage level. depicts the market's demand curve and the firm's isoprofit curves. Based on this information, which of...
2 3 and 4
b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...
5. Suppose that the demand equation for a monopolist's product is p = 400 - 2q and the average cost function is c = 0.29 + 4 + toº, where q is number of units, and both p and c are expressed in dollars per unit. a) Determine the level of output at which profit is maximized b) Determine the price at which maximum profit occurs c) Determine the maximum profit d) If, as a regulatory device, the government imposes...
Problem #4: The demand equation for a product is given by p-250-0.1qdollars per unit where q is the number of units demanded. a. If the cost of producing q units is given by C(g)-1000+80q+0.15q find the profit function. b. Use CALCULUS to estimate the cost to produce the 77th unit. How does this compare with the EXACT cost of producing the 77th unit? Include correct units. Do not round values c. Compute the marginal profit of the 100th unit. Does...
What is the level of profit? Profit equals $_______________
Suppose that a firm's production function is q=4x0.5 in the short run, where there are fixed costs of $2,000, and x is the variable input whose cost is $800 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q). The total cost of producing a level of output q is O A. C(q) = 2,000 + O B....
A firm faces the following average revenue (demand) curve: P= 135 -0.020 where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 50Q + 25,000 Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per...
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