Suppose the cost and the demand for a daily product is: C=10 d(p) = D(1 - w(p)) = 200-10p What is the total contribution (profit) based on the optimal price?
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- Translate the following monetary payoffs into utilities for a decision maker whose utility function is described by an exponential function with R = 250: –$200, –$100, $0, $100, $200, $300, $400, $500.For a certain product, the revenue is given by R = 60x and the cost is given by C(x) = 40x + 1100. To obtain a profit, the revenue must be greater than the cost. For what values of x will there be a profit? x >using the price p=20 - .05x, use the Revenue function to find the marginal Revenue function R'(x), Find a. R'(100)= b. R'(175)= c. R'(250)= The marginal Revenue R'(x) approximates how the revenue will change on the sale of the next item. a. Given R(100) = 642 and R'(100)= 18 then R(101) ≈ b. Given R(400) = 16,250 and R'(400)= -10 then R(401) ≈ c. Given R(1000) = 3500 and R'(1000) = 3 then R(1001) ≈
- How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9% interest each year? a. $546,000 O b. $456,427 O c. $645,000 O d. $456,000The price of a product is expressed as ?, PHP = 10 – 28? where ? is the demand. Which of the following correctlyexpresses the total revenue? 10 − 28?2 28? = 10 10? − 28? 10? − 28?2If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit, and F is the fixed cost, then the break-even point in units is: a Q ÷ (P − V). b F ÷ (P − V). c V ÷ (P − V). d F ÷ [Q(P − V)].
- Find the marginal profit function if cost and revenue are given by C(x) = 224 + 0.8x and R(x) = 8x – 0.05x2. P'(x) =DProblem Three: I) Given the revenue function R(x) = x³ + 3x²+ x .Find the average revenue of producing 100 units. II) Given the marginal revenue function MR = -x3+ 2x²+ 4x – 1. Find the revenue function.Consider a product market with three consumers A, B and C with demand function PA = 6 – QA, PB = 6 – 2QB and PC = 12 – QC respectively, where P is the price in dollars and QA, QB and QC are the quantities demanded by Consumer A, B and C respectively. The marginal cost of the product is constant at $4. (i) If the product is public good, analyse the product and determine the optimal quantity of the product in the market.(ii) How will your answer be different if the product is a private good instead? (Hi there, may I requst for a detailed step by step explanation as i struggle with this topic. Thank you)
- Consider a product market with three consumers A, B and C with demand function PA = 6 – QA, PB = 6 – 2QB and PC = 12 – QC respectively, where P is the price in dollars and QA, QB and QC are the quantities demanded by Consumer A, B and C respectively. The marginal cost of the product is constant at $4. (i) If the product is public good, analyse the product and determine the optimal quantity of the product in the market.(ii) How will your answer be different if the product is a private good instead?Cost, revenue, and profit are in dollars and x is the number of units. If the total profit function is P(x) = 3x – 18, find the marginal profit MP. MP = What does this mean? O This is the total cost. O The next unit sold costs this much to make. O This is the total revenue. O The next unit sold earns this much profit. O This is the total profit.21. The peso amount of sales needed to attain a desired profit is calculated by dividing the CM ratio into a. desired profit b. desired profit plus fixed cost c. desired profit less fixed cost d. fixed cost