3. Suppose that a firm's profit function is π = 80q₁ - 29² - 9192-3q2 + 100q2, where it must be that q₁ +92 = 12. Solve for qi, q2, 7. Solve for X*.
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- 3. Suppose that a firm's profit function is π = 80q₁-2q1-9192-3q2 + 100q2, where it must be that q₁ +42= 12. Solve for q1, 42, 7. Solve for X*.7. A company that sells toys models their profit with the function P(x) = -4x3 + 32x? – 64. Their profit P, in thousands of dollars, is a function of the number of toys sold x measured in hundreds. What do the key features of the graph reveal about the profits? What is the maximum profit the company can make?5. Suppose a firm's cost function is given as C = 6q+10q2-4142+30 and it must be that 91 +92 = 34. What q1 and q2 will minimize cost?
- If the profit function is T = - Q² + 7Q -10 What is the value of the maximum profit Select one: C a. Tmax. = -3.5 b. Tmax. = 2.25 C C. Tmax. =7 d. Tmax. = 3.5If a firm has an accounting profit it must have an economic profit. True O False7. An analyst has found that Tom's Transmissions Company cost function is: C(x) = 40,000 + 500x – 0.55x² for, where x is the number of transmissions. a) Determine the marginal Cost function C'(x). b) Determine when the Cost function is maximized. c) Determine the marginal cost function at the 100th item proe Explain significance of the marginal cost at this point. ed and sold. d) Determine the cost difference between 101st and 100th boat ( C(101) - C(100)). Is this value the same or different from the marginal cost from part c? Explain.
- 2. A firm has found from past experience that its profit in terms of number of unit X produces is given by –+ 729x + 2700 Find the value of x that maximizes the profit and the profit per unit of product, when this maximum level is achieved.3. Assess which of the following is true and which is false.A firm’s total cost function is given by C = 1,000 +15Q. At an output of 200units:a) Total cost is €4,000 and marginal cost is €3,000.b) Total cost is €4,000 and fixed cost is €1,000.c) Total cost is €4,000 and marginal cost is €15.d) We do not have sufficient information to calculate either fixed cost or marginalcost.e) Total average cost is €20, average fixed cost is €5 and thus average variable costis €15.8. siuppose that the manager of a firm operating in a competitive market has estimated the firm's average variable cost function to be: AVC= 18-0.3Q Total fixed cost is $60 and the forecasted price of the firm's product is $12. 79 a. What is the corresponding marginal cost function? b. At what output is AVC at its minimum? C. How much outputs should the firm produce? d. How much profit or loss will the firm earn?,
- 2. The following data of a particular firm choosing a netput vector at different prices was collected during the last financial period: at prices (1, 1), the firm’s netput vector is (−2, 5). At prices (3, 1), the firm’s netput vector is (−1, 2). At prices (1, 2), the firm’s netput vector is (−4, 10). a) Is this behaviour consistent with the profit-maximising model of the firm? b) Draw a precise graph of the largest possible production possibility set Z based on this data. Briefly describe how you obtained it2 13 on 4 tion 5 me solve this K A clothing company determines that its marginal cost, in dollars per dress, is given by the function below. The total cost of producing the first 220 dresses is $9724. Find the cost of producing the 221st through the 340th dress. 2 C'(x) = -25x+53, for x ≤650 The total cost is $ (Round to the nearest dollar as needed.) View an example Get more help - FERON kamint DELL ... Clear all Chock answer brrect: 1 A O 11:517. A firm has determined that its variable costs are given by the following relationship: VC = .05Q' – 5Q² + 500Q where Q is the quantity of output produced. |(a) Determine the output level where average variable costs are minimized. (b) Determine the output level where marginal costs are minimized.