Question Foura) A fim, focusing on producing meat pie has a demand function 20 25-0.25P. Iffixed cost is 145 and variable cost per urit function is 2Q- 40 + , where Q is numberof meat pie produced and Pis the price per unit:i.275Determine the number of meat pies that maximizes the company's profit.ii. How much should the fimcharge per unit of the product?iii. Find the total profit at the profit mximizing level of output.iv. Using the own price edasticity of demand, comment on the fimis pricing policyoptiors.b) The production function for Amzonbuưgers, producers of delicious burgers at Sao Tome,is given as:Q = K%L%If the wage rate is $15 per unit of labour, and cost of capital is $1,920 per unit and you have1 unit of capital which carmot be changed, and the firmemploys 8 units of labour;i. Calculate the fimts total costii.Calculate the fim's average costii.Estimate the marginal product of labour

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Question Four a) A fim, focusing on producing meat pie has a demand function 20 25-0.25P. If fixed cost is 145 and variable cost per uit furction is 20- 40 + , where Q is rumber of meat pie produced and P is the price per unit: Determine the number of meat pies that maximizes the company's profit. ii. How much should the firmcharge per unit of the procuct? iii. 275 Find the total profit at the profit maximizing level of output.

Question Four a) A fim, focusing on producing meat pie has a demand function 20 25-0.25P. If fixed cost is 145 and variable cost per uit furction is 20- 40 + , where Q is rumber of meat pie produced and P is the price per unit: Determine the number of meat pies that maximizes the company's profit. ii. How much should the firmcharge per unit of the procuct? iii. 275 Find the total profit at the profit maximizing level of output.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...

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