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- A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20 a. Find the profit function. b. Estimate the marginal cost function. c. Obtain the production that maximizes the profit. d. Evaluate the average cost and the marginal cost at the maximising production level.cise 2A firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profitWould a cost function of 0 mean a linear line of supply curve? For example if 10 firms are on the market selling 10 goods and the cost function is 0?
- Sergio Lopez is a publisher of Latin American poetry. His fixed cost is $525, and the cost to produce each individual copy of his book is $3.50. Currently, Sergio is selling these books for $6 each. So far this year, he has produced x a. Write a linear cost function C for Sergio’s book production, in terms of x. b. Find the linear revenue function R for selling x copies of the book. Remember that P(x) = (price)x. c. Use and 1b. to determine the profit function P for selling x books. Write the formula in simplified form. d.Use your answer for 1c to determine the profit, in dollars, for selling 300 books.A firm’s objective is to Maximize Profits and Minimize Costs. Demand is Q = 600 – 3*P. The firm’s production function is Q = 5*L.6*K.5. Total Cost is TC = PL*L + PK*K = $12*L + $6*K. The objective is to maximize Profit. Find the Profit-Maximizing output. At the profit-maximizing solution, K =?Total cost function in competitive firm is TC = 27+ 3Q2. If firm gets normal profit please find the average total cost of this firm.
- Q#2. The water bottle manufacturing company in Muscat facing the following demand function P=1000-10Q. The cost accountant at the company by evaluating the costs has given the average cost function as ATC=200+15Q. The manager of the company with presented information above requested you to work on it and help the company to determine the level of output that brings maximum profit. Secondly, the manager also wants to know the total level of profit at the maximum output.The cost function of competitive firm is TC = 20 + 5Q2. The product's market price is 30 AZN. Please find the firm's profit.The marginal cost curve of a firm is MC = 6y + y2 . Total variable costs to produce 10 units of output are
- Q1. A firm's total cost function is c(y) = y² + (a + ß)y + 100ß. p = $50. Find the best output level, y*.Consider the following graph of the average and marginal cost functions for a firm in a perfectly competitive market. At a price of P=10: (iii) the marginal cost of production is . (iv) the firm's total profit is . (v) the firm's variable profit is .The company AffordableStuff sells cell phones. The marginal cost for each cell phone is given by the equation C(x) = 0.01x² – 3x + 229. a is the number of cell phones manufactured and sold. The marginal revenue function is R(x) = 429 – 2.x. Both C(x) and R(x) are given in dollars. a) Where do these curves intersect? What do those intersection points mean? b) Find the area between the curves, using end points that make sense. Round to the nearest cent. c) What does the area under the curve mean in this case?