Please help with f. The average revenue (demand) for product Q is given by AR = 400 – 2Q and thetotal cost of Q by:STC6000 + 12Q + 3Q?< Note: this is not a typical cubic functiona. Find the price function and then the TR function. See Assignment 3 or 4for an example. Hint: another name for price is average revenue (AR).b. Write the MR and MC functions below. Remember: MR = dTR/dQ andMC = DSTC/dQ. See Assignment 5 for a review of derivatives.c. What positive value of Q will maximize total profit? Remember: SettingMR = MC and solving for Q will give you the Q that maximizes totalprofit. The value of Q you get should not be zero or negative.d. Use the price function found in (a) to determine the price per unit thatwill need to be charged at the Q found in (c). This will be the price youshould ask per unit for each unit of Q that maximizes total profit.e. How much total profit will result from selling the quantity found in (c) atthe price found in (d)? Remember: profit is TR – STC.f. At what level of Q is revenue maximized? Remember: let MR = 0 andsolve for Q. MR = 0 signals the objective of maximizing revenue.

Answered: Image /qna-images/answer/ce9775f7-dd88-48ae-94fc-75de9f70c984.jpg

Answered: f. At what level of Q is revenue…

f. At what level of Q is revenue maximized? Remember: let MR = 0 and solve for Q. MR = 0 signals the objective of maximizing revenue. %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. a) Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b) Using your knowledge from Finite Math, determine the Revenue function in terms of ?. c) Determine the Marginal Revenue at 2 different production levels for example 250 and 500 units. Interpret these results. (HINT: Consider what a positive or negative first derivative implies) d) Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. e) Determinethe Marginal costand interpret the…
Revenue and Cost The total revenue function for LED TVs is given by R = 1050x dollars, and the total cost function for the TVs isC = 10,000 + 30x + x2dollars, where x is thenumber of TVs that are produced and sold.a. Which function is quadratic, and which is linear? b. Form the profit function for the TVs from thesetwo functions.c. Is the profit function a linear function, a quadraticfunction, or neither of these?
Let's say jacky has a demand function for a product made in Ney york city given that the function D(q)=-1.15q+270, where q is the number of items in demand and D(q) is the price per item, in dollars, that can be charged when q units are sold. Say that the fixed costs of production for the item is $5,000 and variable costs are $10 per item produced. If 100 items are produced and sold, what are the finds :
The figure shows graphs of the total cost function and the total revenue function for a commodity. (Assume cost and revenue are measured in dollars.) y 500 400 300 200 100 MR 10 (a) Label each function correctly. function A ---Select--- function B ---Select--- (x, y): = 20 (b) Determine the fixed costs. $ 30 (c) Locate the break-even point. -([ = 40 50 Determine the number of units sold to break even. units A B 60 (d) Estimate the marginal cost MC and marginal revenue MR. MC = X
What is relationship between total revenue (TR) and total variable cost (VC) if the price is equal to the AVC (tangent to the minimum AVC), (is TR greater, less, or equal to VC)? What do we call this point?
Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Required. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.? 2. Now consider two cases: (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit…
suppose the Total Revenue function for a product is given by R(x)=V0•1x+0-2x² (R-4,x--u) a) Find the Rate of change in Tota) Revenue or Morginal Revenue . a) b) Find Margina) Revenue nhen x=4 units are sold and slate nhatitpredicts for the sale of the next unit c) Firid the Actual change in To tol Revenue uhen productm Level is ingeased from 4 to 5 units di Esplainany discreponcy hetncen parls (1) and (c)resuHs mathemohie ally / Graphically d)
Consider the following demand function P = 62 - 2Q and the Cost for the business is $150 (for initial capital required) plus $2 for each item made. (i) Determine the equation for the profit and find the optimum value. (ii) Is the profit increasing or decreasing on approach to the optimal value from the left? 000.05 mu em 10 (iii) Is the rate of change in the profit change itself (marginal rate) increasing or decreasing? (iv) Investigate the approach to the optimal value from the right.
Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) A.Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. B.Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…
Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh                 Q1 = 12 – P1 Sri Lanka                    Q2 =   8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.
Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 =  8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2)       a. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.
Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh                 Q1 = 12 – P1 Sri Lanka                     Q2 =   8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will              be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…