A firm faces the following linear inverse demand for its product P = 60 - 2Q. a) Find the firm's total revenue function TR (Q). b) Find the expression for the firm's marginal revenue. c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price?
Q: It is known that the demand function for a good is shown by the equation P = - 5Q + 110 and the…
A: Profit can be calculated as the difference between total cost and total revenue. First, total…
Q: Assume the profit-maximizing price is $11 per gift box, and then answer the following question a.…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: Suppose the market demand curve for cranberry is given by the equation Qd=500-4P, while market…
A: Demand function, Qd = 500 - 4P Supply function, Qs = -100 + 2P
Q: Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm…
A: The following calculations are done below.
Q: Assume a firm's supply function for a good is given by the following expression: qs (p) = p−10…
A: qs (p) = p−10…
Q: XYZ Corporation produces garments. Its cost function is C(Q) = 1.5Q. The inverse demand function is…
A: We have the following information- Demand function, P = 9 - 0.005Q cost function, C = 1.5Q Let us…
Q: The price p (in dollars) and the quantity q sold of a certain product obey the demand Equation : q…
A: (1) q=800 - 20p ----------> demand equation => p = (800 - q)/20 => p = 40 - 0.05q…
Q: Find the demand function for the marginal revenue function. Recall that if no items are sold, the…
A: Given Marginal Revenue function is R'(x) = 0.06x2 - 0.09x + 186 Integrate both side C is…
Q: suppose the supply function of product x is given by QxS= -30 + 2Px - 4Pz a. how much of product x…
A: Given that, Supply function of product x is given by QxS= -30 + 2Px - 4Pz Px= $80 and Pz = $60
Q: A limit pricing strategy is most likely to be successful when: A market demand is rising B there are…
A: Limit Price is a pricing tactic used by monopolists to deter competition. When a monopolist sets its…
Q: Using the market demand function, what is Px that will make all the buyers stop purchasing this…
A: Given Individual demand function: Qdx=65000-11.25Px+15PY-3.75I+7.5A Price of product Y is…
Q: Suppose a firm produces according to the following production function y = x₁³x2 स What is the…
A: Given Firm's production function: y=x10.25x20.75 ...... (1) w1 and w2 be the input…
Q: The accountant of an agricultural company is asked to make a report about the commodities, and…
A: The law of demand refers to the inverse or negative relationship between the quantity demanded of a…
Q: 0-6. Research shows that the demand function for a new product is dx)=- 5x + 18, where x represents…
A: here we can calculate the following as follow-
Q: If in a pure competitive market the supply function is defined by Q=0.5P-0.5 whilst the demand…
A: Perfect competition refers to the situation where there are large number of prouder and consumers…
Q: The total revenue function of a good is given by TR=100 Q - Q2 If the current demand is 40. The…
A: Total revenue is defined as the money generated from the sale of the good which is calculated as the…
Q: consumer's surplus
A: Consumer surplus depicts the area of willingness to pay minus price paid for the commodity. It helps…
Q: (a) Show that demand is a decreasing function (as expected). (b) Find the marginal revenue at…
A: The demand(DD) function is the relationship between the price(p) and the quantity demanded(x) to…
Q: The price-demand equation and the cost function for the production of active styluses are given,…
A: We have the demand function as: P = 470 - 0.05X The domain of any function f(x) is those values of…
Q: Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling…
A: DS=226-0.60PS+0.35PH DH=280+0.10PS-0.64PH
Q: A firm maximizes its profit by producing Q= 500 units of output. At that level of output, its…
A: The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal…
Q: A firm faces the following linear inverse demand for its product P = 60 - 2Q. a)Find the firm's…
A: In a monopoly market, a firm optimizes the profit where the marginal revenue is equal to the…
Q: A firm faces a demand function D(p), for which the revenue- maximizing price is $10. The demand…
A: A demand function is a list of prices and the corresponding quantities that individuals are willing…
Q: A firm manufactures two goods labeled 1 and 2. It sells Qi items of good i for a fixed price per…
A: Answer to the question is as follows :
Q: If the demand for a particular commodity is p=-0.09x+51 the total cost function,…
A: 1. The revenue is obtained by multiplying the price with quantity in the market. The price in this…
Q: Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear…
A: A demand function represents the inverse relationship between the quantity demanded of a good or…
Q: Consider the following Demand and Cost Functions respectively : P = 150 – 0.5q C = 100 + 3q + 7q2…
A: Given, Demand function: P = 150 – 0.5q Cost function: C = 100 + 3q + 7q^2 Using demand and cost…
Q: A firm faces a demand function (where q=quantity demanded and p=price): q = 200 – 2p and a total…
A: Answer: Given, Demand function: q=200-2p Or, 2p=200-q p=100-0.5q Total cost function: Break-even…
Q: Suppose a firm's supply curve in a competitive market is S = 25 + 5p, where S is the supplied…
A: Here, supply function is given as: S=25+5p, where 5 is the slope of the supply curve The price…
Q: Imagine the demand function for your firm’s product is q = 1500 – 4P. How much is the Total revenue…
A: q = 1500 – 4P 4P=1500-q P=(1500-q)/4 Total Revenu=Price*Quantity TR=Pq TR=[(1500-q)/4]*q
Q: If the total revenue function of a good is given by TR= 900Q- 3Q² Find Marginal Revenue at Q=20…
A: TR=900Q-3Q2MR=∂TR∂Q=900-6Q Now, we need to find MR at Q=20 Therefore, MR=900-6(20)MR=780 And TR =…
Q: Which of the following long-run supply functions is inconsistent with an increasing-co (Qs quantity…
A: Supply curve shows a positive relationship between price and quantity supplied. It slopes upward.
Q: Assume the profit-maximizing price is $5 per gift box, and then answer the following questions: a.…
A: A competitive economy is one where there are infinite number of buyers and sellers who earn zero…
Q: The supply function for a product is 2p − q − 60 = 0, while the demand function for the same…
A: Market equilibrium is found at a point where the ss(supply) function and the dd(demand) function…
Q: A firm faces a demand function (where q=quantity demanded and p=price): q = 200 – 2p and a total…
A: The firm would always result in maximizing profits by selling a quantity at a fixed price per unit…
Q: Firm 1 faces a demand function of q1 = 100– 2p1+p2, where q is Firm l's output, Pi is Firm %3D l's…
A: Under these presumptions, it very well may be shown that the Bertrand (Nash) equilibrium is that…
Q: Find the marginal values for functions a, b, and c given below and evaluate each at Q=100. a) C(Q) =…
A: Have you ever considered how valuable you are to your company? When requesting a raise or promotion,…
Q: The profit function of a good is given by the following: n = -5Q2 + 631Q – 3255 where P is the price…
A: The relationship between the quantity demanded a commodity (dependent variable) and the price of the…
Q: A firm's demand function for a certain good is given by P=100e1. Its total cost function is…
A: A firm's output is maximized at the point where: Marginal Revenue (MR)=Marginal Cost (MC) MC curve…
Q: A firm faces the following average revenue (demand) curve: P = 100 - 0.01Q where Q is weekly…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Question 6 options: The price of a product in a competitive market is $100. The cost per unit of…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Manager Mutua comes to you as a consultant armed with the demand function of his firm and wishes to…
A: Answer: Given, Firm's demand function: P=1000-1.5Q Explanation: Total…
Q: The demand function of a product is q = 75-p².2 ≤p≤7, where g is the quantity of the product that…
A:
Q: Write down the revenue function, cost function, and profit function as functions of p. How much…
A: An economic Profit is the difference between the revenue a business has received from its outputs…
A firm faces the following linear inverse demand for its product P = 60 - 2Q.
a) Find the firm's total revenue function TR (Q).
b) Find the expression for the firm's marginal revenue.
c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A firm faces the following linear inverse demand for its product P = 60 - 2Q. a)Find the firm's total revenue function TR (Q).b)Find the expression for the firm's marginal revenue.c)Assumingthat the marginal cost of production is given by MC=8. What will be the equilibrium output and priceA flour mill buys its wheat from two different farms, then processes the wheat into flour. Wheat from Farm X costs the mill $7 per bushel, and wheat from Farm Y costs the mill $15 per bushel. The selling price (in dollars per bushel) for the mill's wheat can be modeled by p(x, y) = 500 x y where x is the demand for the flour milled from Farm X's wheat and y is the demand for flour milled from Farm Y's wheat. Assume that x and y may be zero (so the mill only buys from one of the suppliers) and that the mill can by 1/2 of a bushel. Then the maximum profit is attained when x = y = bushels bushels The amount of the flour mill's maximum profit is $For a firm’s product, the demand function is p =72−0.04q and the average cost function is i. ¯ c = 500 q +30 i. At what level of output would profit be maximized? ii. At what price is the profit maximized?
- The demand function for a good is given by the equation P= 50 – 2Q, while total cost is given by TC = 160 + 2Q Write down the equation for the total revenue. Write down the equation for the profit. Find the value of Q when the firm breaks even.The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ NumberThe inverse demand for tea is given by P = 8 – 0.03Q, where Pis the price per a gram of tea and Q is the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.02q,?, where q, is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.02q22, where q2 is the number of grams of tea it brings to %3D %3D market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £…
- A 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 profitThe price-demand equation and the cost function for the production of active styluses are given, respectively by p = 470 -0.05x and C(x) = 160,000 + 22x d) Given a price of $150, determine whether the price should be increased or decreased in order to increase revenue. e) Find the revenue function, R(x). f) Calculate the number of styluses the company should sell in order to maximize revenue. g) Find the approximate cost of producing the 140th stylus.The profit function of a good is given by the following: n = -5Q2 + 631Q – 3255 where P is the price of the item and Q is the quantity. Determine the demand function of the good if the variable costs are 14 per item.
- A competitive firm has a total cost function: TC = 20 + 50q − 6q2 + q3 and a marginal cost function MC = 50 − 12q + 3q2. (a) If the market price is P = $230 per unit, the firm will supply 10 units of the good. Calculate: (i) the profit (ii) the producer's surplus (b) Assume that the market price is P = $50 per unit. Find (i) the level of output supplied by the firm (ii) the firm's profit (use a minus before your answer if the firm incurred a loss) (c) Calculate the range of prices for which the firm will find it optimal to shut down.The marginal revenue of a firm is given by the following equation: MR(Q) = 29 + 22Q + 11Q2 Where, Q represents the quantity produced. Also given, the total revenue of the firm, when they produce 5 units of output, is 50, i.e., TR(5) = 50. Calculate the firm's total revenue function. What is the value of the constant term in the total revenue function? Calculate the total revenue of the firm when the firm produces 7 units of output.On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.