Given the data provided in the table below, what will the marginal revenue equal for production at quantity (Q) level 4? Q P 0 1 2 3 4 5 6 7 $5 $5 $5 AAAAA $5 $5 $5 $5 $5 $5.00 $1.00 $15.00 $20.00 TC $9 $10 $12 $15 $19 $24 $30 $45 TR MR MC Profit
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- A firm’s profit is given by the following function, which maps output q ≥ 0 onto profit (revenue minus cost). π(q) = 11q − (q 2 + 2q + 10) = −q 2 + 9q − 10, The firm is constrained by a quota such that output q cannot be greater than a value Q. (a) What is the domain of this profit function? 1 of 2 ECON10071/20071 - 2020/21 (b) Given this, what is (global) profit maximising output when (i) Q = 6, and when (ii) Q = 2.-----A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have earned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her economic profit? a. ?$240,000 b. ?$60,000 c. ?$300,000 d. ?$450,000 ----------------------------------------------------------------------------------------------Suppose a firm faces the demand curve P = 100 – Q, while its costs are given by TC = 100 + 10Q, so MC = 10. Find the profit maximizing price and quantity for this firm, if it can only charge one price. Calculate the firm’s profit. Make a diagram, and illustrate consumer surplus, producer surplus, and deadweight loss, if any. Does this analysis suggest any problems with this situation from a public policy standpoint? Does the analysis suggest any unexploited business opportunities? Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.
- A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 0 7 100 6 200 5 300 4 400 3 500 2 600 1 700 0 800 If the company were to build the bridge, its profit-maximizing price would be $ ? , and it ( would or would not)? produce the efficient level of output. If the company is interested in maximizing profit, it (should , or should not)? build the bridge because profit would be . (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ ? True or False: The government should build the bridge. True or FalseYou’ve been given a firm’s production and cost functions:p = 132 −2qMC = 12 + 4q(a) Assume this firm is in a perfectly competitive market. Calculate the equilibrium price andquantity.(b) What is the firm’s profit here?(c) Assume this firm is in a monopoly market. Calculate the equilibrium price and quantity.(d) What is the firm’s profit here?(e) Give an example of a perfectly competitive agricultural market, and give an example of amonopoly agricultural market.Q MB MC 1 30 3 2 27 5 3 23 8 4 18 12 5 12 17 6 5 23 The above table represents the marginal benefit schedule, measured in dollars, for Sheryl, and and the marginal cost, measured in dollars, of a single firm in the market for cinnamon rolls. Suppose the market price is $9 per cinnamon roll. Answer the following questions with whole numbers only. a. How much consumer surplus does Sheryl receive when she buys the first cinnamon roll? $ ___ b. How much producer surplus does the firm receive when it sells its first cinnamon roll? $ ___ c. On how many cinnamon rolls would Sheryl receive a positive amount of consumer surplus? ___ d. On how many cinnamon rolls would the firm receive a positive amount of producer surplus? ___ e. What is the total amount of producer surplus the firm receives if it sells 2 cinnamon rolls? $ ___
- The marginal revenue of socks given as MR = 100-2Q The marginal Cost Of socks is given as MC = 5078Q. How many socks will be produced to maximize profit а 0 b. 5 C.50 de 100Suppose the demand for a product X produced by a company AAA is given by the following function: QX = 2000 - 250*PX. At what price per item of the product X (EUR) can this copmany maximize its total revenues? Fill in the Table gaps: Demand function Price function Total Revenue (EUR) Marginal Revenue (EUR) Quantity Price per product (EUR) Q = 2000 - 250P P = ? TR = Q*P MR = dTR/dQ = 0 Q = ? P = (2000 - Q)/250 250P = 2000 - Q TR = Q*(2000 - Q)/250 MR = 8 - 2*Q/250 Q/125 = 8 P = (2000 - 1000)/250 P = (2000 - Q)/250 TR = 8*Q - Q^2/250 8 - Q/125 = 0 Q = 1000 P = 4 Alternative solution Demand function Total Revenue (EUR) Marginal Revenue (EUR) Price per product (EUR) Q = 2000 - 250P TR = Q*P MR = dTR/dP = 0 2000 - 500*P = 0 TR = (2000 - 250P)*P MR = 2000 - 2*250*P 500*P = 2000 TR = 2000P - 250P^2 MR = 2000 - 500*P P = 4Consider the following production and cost functionsq=〖(10K^(2/5)+5L^(2/5))〗^(5/2)1250=20K+8LWhich implies〖MP〗_K=10〖(10K^(2/5)+5L^(2/5))〗^(3/2) K^(-3/5)〖MP〗_L=5〖(10K^(2/5)+5L^(2/5))〗^(3/2) L^(-3/5)What is the profit maximizing combination of K and L?
- Suppose a firm has the following costs: Outputs (Units) 10 11 12 13 14 15 16 17 18 19 Total Cost (US$) 50 52 56 62 70 80 92 106 122 140 1. If the prevailing market price is $12 per unit, how much should the firm produce? 2. How much profit will it earn at that output rate? 3. If the market price dropped to $8, how much output should the firm produce? 4. How much profit will it make at that lower price?A manufacturer knows that: His TR is given by Revenue = 23Q – Q2 /4 His total cost of production is; Cost = 36 + 2Q + 0.1Q2 Where Q is the weekly production in thousands a) Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR) b) How do you think Economists’ would define ‘Marginal Cost’? Derive an expression for marginal Cost (MC) and at what output will make marginal Revenue equal Marginal cost? c) Find the total profit and the value of Q that maximizes profit1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.