Question 6.
a.
So, 8Q = 600
So, Q = 600/8 = 75
So, Q = 75
Second order condition:
So, TR is maximum at Q = 75.
b. Maximum revenue =
c. Profit = TR - TC =
So,
d.
So, 8Q = 500
So, Q = 500/8 = 62.5
Second order condition:
So, profit is maximized at Q = 62.5
e. Maximum profit = =
Maximum profit is 5,425.
Note: Post one question at a time.
6. Given the following function TR(R) 6000 -40 TCQ) 1000 +10,200 a. Find the revenue maximizing...
6. Given the following function TR(Q) -600Q -40 TC(Q) = 1000 + 10,200 a. b. c. d. e. Find the revenue maximizing level of output (check 2ad order conditions also), Find the maximum revenue Find the corresponding profit function Find the profit maximizing level of output (check 2nd order conditions also) Find the maximum profit
7. Given the following function TR(x)--3x2 + 260x TC(x) = 5,500 + 50x a. Find the revenue maximizing level of output (check 2a order conditions also). b. Find the maximum revenue c. Find the corresponding profit function d. Find the profit maximizing level of output (check 2nd order conditions also) e. Find the maximum profit
11. Given that total cost can be expressed as TC(X) = x3-140x2 + 4200, find: a. the average cost function b. the level of output that minimizes AC (check 2nd order conditions also) c. the value of average cost at its minimum level
Consider a competitive rm with total costs given by TC(q) = 100 + 10q + q^2, The firm faces a market price p = 50. (a) Write expressions for total revenue TR and marginal revenue MR as functions of output q. (b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q. (c) For what value of output is ATC minimized? (d) Find the profit maximizing level of output q...
10. Given that total cost can be expressed as TC(X) = x3 - 140x2 + 4200, find: a. the average cost function the level of output that minimizes AC (check 2nd order conditions also) the value of average cost at its minimum level
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...
Find a maximum profit for a firm if its total revenue function is TR = 50Q ‒ Q2 and its total cost function is TC = 100 ‒ 4Q + 2Q2
5. (6 points) Find (a) the profit maximizing level of outputs and (b) maximum profit for the monopolistic producer of two products 1 and 2 with the demand functions being: Q. - 50 -0.5P 0.-76-P and the joint cost function C -30/+20,0. +20, +55. Make sure to check the second order conditions for maximion]
22 73. D. ATC is at its minimum value occurs when total revenue function intersects with total cost functions A II maximization B. Break-even output C. Loss minimization D. Break-even point is an area between the TR and TC functions when TC is less than TR. A Loss zone B. Maximum C. T zone Dit function corresponds to the highest difference between TR and TC within the zone. A maximizing price B. maximization TR C. maximization quantity D. Break-even output
3.5 5. A firm's total-revenue and total-cost functions are TR 40 TC 0.0403-0.90+ 100 +5 (a) Determine the best level of output. (b) Determine the total profit of the firm at its best level of output.