Sandra has a short-run cost function of producing good 1 of c(q) = 4q² + 40 where q is the quantity of good 1 produced. If she received a price of $24 for each unit of good 1 sold, what is Sandra's profit-maximising level of profit assuming that the market is perfectly competitive?
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- A company manufacturing laundry sinks has fixed costs of $100 per day but has totalcosts of $2,500 per day when producing 15 sinks. The company has a daily demand functionof q = 360 − p, where q is the number if laundry sinks demanded and p is te price ofa laundry sink. ) If production increases continuously, what is likely to be the average cost per sink? How many laundry sinks will the company need to produce in order to maximise it′s profits? What is the maximum profit?A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. a) Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b) Using your knowledge from Finite Math, determine the Revenue function in terms of ?. c) Determine the Marginal Revenue at 2 different production levels for example 250 and 500 units. Interpret these results. (HINT: Consider what a positive or negative first derivative implies) d) Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. e) Determinethe Marginal costand interpret the…COURSE: MICROECONOMICS - Bertrand's ModelAssume that a market is supplied by 2 companies, whose total costs are: CTi = 100Respective demand of each is: q1 = 120 - 2p1 + p2 and q2 = 120 - 2p2 + p1It is requested to:(a) calculate the firms' profit and reaction function.(b) plot the market equilibrium price and reaction function(d) calculate equilibrium quantity produced by each firm(e) determine profits that both firms will have at equilibrium.
- When the price falls from P3 to P1, the firm finds that Price АТС MC P4 AVC P3 P2 P1 3D Q,Q2 Q3 Q4 Quantity (If you can't see the diagram or want to see a larger version click here.) O it should produce Q1 units of output O it should shut down immediately O it should produce Q3 units of output O fixed cost is higher at a production level of Q1 than it is at Q3Suppose that firm is currently producing 15 units of a good at a market price of $12. The firm has a MC of $12 and an average total cost of $8. What is the firm's economic profit and is it maximizing profits? O $0, yes O $60, no $60, yes O $0, no 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.Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.
- Suppose you are an analyst for the Coca-Cola Company. An individuals' inverse demand for Coca-Cola is estimated to be P = 98- 4Q (in cents). If Coca-Cola is produced according to the following cost function C(Q)= 1,000+ 2Q (in cents), compute the optimal price and the number of cans to sell as a single package. O $1200 per package and 12 cans O $11.52 per package and 12 cans O $15 per package and 16.67 cans O $12 per package and 24 cansA firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should O sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. O sell 101 because price is greater than average total costs. O sell 101 goods because it adds to profits. O sell 101 goods because its fixed costs are so low. 55. つ25 MacBook Air 000 esc F1 F2 F3 F4 F5 F7 23 $ & 1 3 7 Q W E R Y tab A S F G caps lock C V B shift altThe table below represents market demand for good Q at different prices P. The firm's unit cost of production is $70. Based on this information, which of the following is correct? 400 500 600 700 800 900 1000 $240 $220 $200 $180 $160 $140 $120 $100 $80 Q 100 200 300 $60 O a. At Q = 200, the firm's profit is $55,000. O b. The maximum profit that can be attained is $45,000. Oc. The minimum profit that can be attained is $240. O d. The profit-maximising output is Q = 400.
- The total cost of producing a certain good is given by TC = 30 In (q + 300) + 150. Find the marginal cost (MC) and the average cost (AC) functions. O a. MC = and AC = 30 9+300 O b. MC= 30q 9+300 and AC = O c. MC = (30 ln (q +300) Od. MC = = (30 ln (q + 300) +150) (30 In (q +300) + 150) +150) and AC = 30 9+300 and AC = (300 In (q +30) +150) 300 9+30(b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p 40 – 4q²where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (1) Write an equation giving profit as a function of the number of lightweight compasses produced. (11) At the moment the company produces 2 million lightweight compasses and makes a pre of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit? Σ BIUG G |卡 三 = 9 ..Karim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Karim initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Karim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Karim must lower the price from $60,000 to $40,000 per truck. Notice that Karim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $40,000 rather than $60,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. PRICE (Thousands of dollars per fire engine) A 82 8288 289 RO 220 200 100 100 140 120 100 Demand 3 A A A ΔΔ 0 5…