Given the following total-revenue and total-cost functions of a firm: TR = 4Q TC = 0.04Q³ – 0.9Q² + 10Q + 5 determine the level of output at which the firm maximizes its total profit. determine the maximum profit that the firm could earn.
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Given the following total-revenue and total-cost functions of a firm:
TR = 4Q
TC = 0.04Q³ – 0.9Q² + 10Q + 5
- determine the level of output at which the firm maximizes its total profit.
- determine the maximum profit that the firm could earn.
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- Suppose at the level of output q = 100, the average variable cost is $7/unit, the marginal cost is $8/unit, the average total cost is $9/unit, and the price is $10/unit. Draw the cost (AVC, MC, AC) and marginal revenue curves for the firm and show where the firm is at q = 100.Use the diagram to answer the following questions: Is the firm making a positive profit or is it losing money (in the short run)? Explain with a reference to your diagram. • Can the firm increase its profit (in the short run)? Explain with a reference to your diagram.Assuming the market equilibrium price for tomatoes is $1.75 per kilo in perfect competition market. Draw the total revenue and marginal revenue curves for the typical tomato grower on the same graph. Explain how marginal revenue and price are related to the total revenue."A profit maximizing firm seeks to produce at an output where its marginal revenue is equal to its marginal costs." Agree or disagree with this statement.
- A firm has the following average cost and demand function Ac= 3Q+7+12/Q Q= 10-P I. Write out the total cost and total revenue functions in terms of Q. II. Find the average cost, marginal cost, average revenue and marginal revenue functions. II. Formulate the total profit function in terms of Q.Delvin has a hot dog stand in a busy midtown area with similar stands on every block. The graph above shows the cost curves of Delvin’s Hot Dogs. The market price of a hot dog is $3. Answer the questions below and show all calculations where necessary. From the diagram, what is Delvin’s profit-maximizing output per day? Explain your answer. Calculate Delvin’s accounting profit per day. How will Delvin’s price and profit change in the long-run, assuming no change in technology or demand?Now compute the missing marginal revenue from the table. The table is reproduced here for convenience. Note: answers should be integers only (i.e 1,2,3,4,5,6,.... etc). Based on the information you computed, what quantity should the firm produce to maximize profits? Quantity Total Cost ($) Total Revenue ($) Marginal Cost ($) Marginal Revenue ($) 0 8 0 -- ? 1 9 8 ? 2 10 16 ? 3 11 24 ? 4 13 32 ? 5 19 40 ? 6 27 48 ? 7 37 56 ? 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.
- Consider the following information: TC = 15 + 5Q + Q2 Q = 30 – P Where TC is total cost, Q is the total product and P is price. What is the correct expression for total profit? a.25Q – 2Q2 – 15 b.25Q – 2Q2 – 20 c.25Q – 2Q2 + 15 d.25Q – 2Q2 + 201 point You're running a small firm, and you have an estimate of both your cost function and your demand curve. Your cost function is TC-818-190+40^2, while your inverse demand i curve is P-814-0.5gq, where P is the price of one unit of your output and q is the quantity of units produced and sold. If you wanted to maximize profit, what quantity would you produce? Please round your answer to the nearest whole number (le, no decimal places). Type your answer.The profit function for a firm is given by n(q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm operating in the short-run or the long-run? How do you know? b. What is the output that maximizes profit for the firm? c. What is the maximized level of profit? d. In Excel or other software, provide a graph of the above profit function to confirm your mathematical results found above. Use output amounts ranging from 1 to 200. Put profit on the vertical axis and output on the horizontal axis.
- Suppose Tim runs a small business that manufactures frying pans. Assume that the market for frying pans is a price-taker market, and the market price is $20 per frying pan. The following graph shows Tim's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven frying pans that Tim produces, including zero frying pans. 175 150 Total Revenue 125 Total Cost 100 Profit -25 -50 3 QUANTITY (Frying pans) 1 4 8 the firrt ceren foring nans he produces, and plot them on the following graph. Use the blue TOTAL COST AND REVENUE (Dollars)Consider the following information: TC = 20 + 5Q + Q2 Q = 25 – P Where TC is total cost, Q is the total product and P is price. What is the correct expression for total profit? a. 20 – 2Q2 – Q b. 20Q – 2Q2 – 20 c. Q + 2Q2 + 20 d. 20Q + 5Q2 +20Nathan runs a rare book store. Last year, he earned $35,000 in revenue and had explicit costs of $8,000. Nathan could have made $35,000 driving a boat in a water ski show and received an additional $5,000 if he had used the company's inputs in a different way. Calculate Nathan's economic profit. $