Problem 1If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost punit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15 –125,its production cost per unit is US$5.00and its fixed cost are the same as for company A.(i) Derive the total revenue function, R(x) for company A.(ii) Derive the total cost function, C(x) for company A.(iii) Derive the profit function, II(x) for company A.(iv) Using a spreadsheet, create a table for showing x, R(x)4, C(x) for company Ain the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450.(v) Graph the functions from (d) above on the same axes.(vi) From your graph, determine the break-even level of output for company A.(vii) Derive the total revenue function, R(x) for company B.(viii) Derive the profit function, Il(x) for company B.(ix) How many t-shirts must company B sell to in order to break-even.(x) How many t-shirts must company B sell to maximise its profit.16 If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost perunit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15–125its production cost per unit is US$5.00and its fixed cost are the same as for company A.(i) Derive the total revenue function, R(x) for company A.(ii) Derive the total cost function, C(x) for company A.(iii) Derive the profit function, II(x) for company A.(iv) Using a spreadsheet, create a table for showing x, R(x),, C(x) for company Ain the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450.(v) Graph the functions from (d) above on the same axes.(vi) From your graph, determine the break-even level of output for company A.(vii) Derive the total revenue function, R(x) for company B.(viii) Derive the profit function, II(x) for company B.(ix) How many t-shirts must company B sell to in order to break-even.(x) How many t-shirts must company B sell to maximise its profit.

If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company Balso manufactures t-shirts and selll them directly to consumers. The demand for its product isp 15- 125' its production cost per unit is US$5.00 %3D and its fixed cost are the same as for company A. (i) Derive the total revenue function, R(x) for company A. (ii) Derive the total cost function, C(x) for company A. (iii) Derive the profit function, II(x) for company A.

If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company Balso manufactures t-shirts and selll them directly to consumers. The demand for its product isp 15- 125' its production cost per unit is US$5.00 %3D and its fixed cost are the same as for company A. (i) Derive the total revenue function, R(x) for company A. (ii) Derive the total cost function, C(x) for company A. (iii) Derive the profit function, II(x) for company A.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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