1. Verify numerically that when TC = Q² mar- ginal cost is MC = 2Q. 2. What are the optimal output, price, and profits can select the quantity to purchase. What transfer price will the manufacturing unit select? What are the resulting profits of the %3D %3D for the firm? two units? 4. From the firm's standpoint, what is the optimal transfer price? 3. Now assume that the firm is divided into two profit centers. One division manufactures the
Q: 2. (a) What output mix should a profit-maximizing firm produce when its total profit function is T =…
A: Profit = 144x-3x2-xy-2y2+120y Max output = x+y = 40
Q: 1. There are 3 possible ways of increasing profit as provided in the module (With TC constant,…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Does the scenario present an example of post-investment holdup? Your company took note of your…
A: Post investment holds up is the issue arises due to the improper writing of contract between the two…
Q: Low-energy lightbulbs typically cost $3.65, have a life of nine years, and use about $1.75 of…
A: Here we calculate the annual equivalent cost of the following terms , so calculation is as follow-
Q: estion) Consider a firm that uses capital and labor as inputs and sells 5,000 units of output per…
A: Part (a) Explicit cost is the cost of factor of production in which the company actually pays. Here…
Q: Which of the following statements is most correct? The quickest way to determine whether the firm…
A: In an economy, when a firm operates its business, it maintains different types of records of all the…
Q: MM’s Proposition I holds, minimizing the weighted average cost of capital (WACC) is the same as…
A: The firm exists in the market to maximize the profit. The short run objectives might be different…
Q: ou own AAA Audio/Video Repair. You make service calls to customers’ homes to repair their…
A: Fixed cost = 10,000 Variable cost = 20/service
Q: GERIAL ECONOMICS) Show algebraic solution please The accounting department head of MOOG Controls…
A: Given Information Interst rate (i) = 7% or 0.07Growth rate (g) = 10.25 %
Q: |- You have the opportunity to invest in one of two companies. Company X has fixed cost of $10 000…
A: Company x fixed cost = 10,000,000 variable cost = 5/unit Company y fixed cost = 6,000,000 variable…
Q: Given that demand for some product can be modelled by D(p) = 2022/p, for which objective should the…
A: The demand is the willingness to buy the quantity at certain time and place . It is directly and…
Q: Given the data provided in the table below, what is the marginal cost of producing the 4th unit of…
A: Q P TC TR MR MC Profit Q*P TRn-TRn-1 TCn-TCn-1 TR-TC 0 $5 $9 0 - - - 1 $5 $10 5 5 1 -5…
Q: The Laundromat Corporation is considering opening another coin-operated laundry in a city. It has…
A:
Q: Suppose you own a cupcake bakery. Your revenue is $400/day and your operating costs are $100/day. If…
A: Implicit cost is the foregone income that could have been earned if resources were invested…
Q: 17 - Which of the following is a breakeven situation? a) AC=AR B) ACAC D) P=TC…
A: A break-even point is the point at which total revenue equals total costs or expenses. At this point…
Q: At the end of 2011 Home Depot's total capitalization amounted to $29,031 million. In 2012 debt…
A: the income is the payment received by an individual or a firm or business entity for any work…
Q: Using the following data, what would the transfer price per unit if Division A purchased Component X…
A: Cost based transfer pricing is one of the transfer pricing techniques where the cost of production…
Q: CONVEX Ltd. is a new company that was established on 1st January, 2020 to oversee the production of…
A:
Q: Q3. A) If the supply price of machine is Rs. 3000 and Marginal productivity of capital is 10% , the…
A: The value of money refers to the number of goods and services one can buy using it. It is calculated…
Q: Modified True or False: State whether each statement is true or false. If the statement is false,…
A: Economic profit means the deduction of total revenue from the total cost. It includes both implicit…
Q: Which of the following conditions must hold true for the constant growth valuation formula to be…
A: The constant growth model is also known as the Gordon Growth Model. It is used to value the stocks.…
Q: What are the variable costs? (show below) What are the fixed costs? (show below) Which one is a…
A: The expenditure incurred by a producer on acquiring the factors of production is referred to as the…
Q: How would the annual profits of $100,000 be distributed among all three of you? (b) Using these…
A: Profit and loss should share according to the capital contribution. So I get 50%, partner A get 30%…
Q: Assume the coal resource is in fixed supply and its stock is 15 units of coal. Assume 2 periods of…
A: Given information Available stock of coal=15units There are 2 period consumption Demand function or…
Q: Qd=5.3-0.1p where Qd is the number of new automobiles demanded per year (in millions) when P is the…
A: The demand equation: Qd = 5.3 - 0.1P whereas, Qd = Number of new automobiles demanded per year (in…
Q: Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an…
A: Economic profit = Total revenue - Explicit costs - Implicit costs
Q: Suppose that a business incurred implicit costs of $200,000 and explicit cost of$1million in a…
A: The question has been solved below.
Q: Calculate the cost of preferred stock Current assets $2,000 Net fixed assets 3,000 Total…
A: Cost of preferred stock = dividend paid to preferred stockholders / Current share price * 100
Q: According to information in Table Cost.1.2 where loans are used for establishing the firm,…
A: Accounting profit = total revenue – Explicit cost Economic profits = Accounting profit – Implicit…
Q: Refer to the seenario below to answer the questions. Upon graduating with an accounting degree, you…
A: Annual economic cost = explicit cost + implicit cost = rent & supplies + salary given up =…
Q: Jaynet spends $30,000 per year on painting supplies and storage space. She recently received two job…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Global Giant is a multinational corporation that transfers intermediate products between divisions.…
A: Global Giant is a multinational corporation that transfers intermediate products between divisions.…
Q: How would you approach this issue if you were the manager in charge of sourcing raw materials for…
A: 1)PESTEL stands for political,economic,social,technological, environmental and legal. LEGO is a toy…
Q: Q44. Suppose that cellphone batteries can be produce using 3 different types of technologies. The…
A: The firm would result in the production of the various goods and services using the various inputs.…
Q: Different projects, investments, or wholesale/retail activities may generate different streams of…
A: Investment: The term investment refers to the use or investing process in order to earn profit or…
Q: 2. Suppose that you are the manager of a studlo cafe, and you are planning to invest on a new camera…
A: Incremental cost refers to the additional cost incurred on the production of the one extra unit of…
Q: Isabel runs her family's small pineapple processing plant, which takes fresh pineapples and cuts…
A: Calculation of total cost of pineapple production per year Calculation of total cost and marginal…
Q: Most of Australia’s coal-fired power plants are running at a loss as electricity prices continue to…
A: a) Graph depicting decrease in the daytime electricity prices:- As can be seen from the graph that…
Q: MANAGERIAL ECONOMICS) Show algebraic solution please The accounting department head of MOOG…
A: Given Information Interest rate (i) = 7% or 0.07Annual Growth rate (g) = 0% Current Profit = Php 5.2…
Q: Dynamic efficiency refers to an allocation such that no further shuffling of extraction across…
A: Dynamic efficiency is mainly concerned with the efficiency of a firm over a period of time.…
Q: (MANAGERIAL ECONOMICS) Show algebraic solution please The accounting department head of MOOG…
A: Below is the given values: Company's profit = 5.2 billion Interest rate ( i ) = 7% Growth rate (g) =…
Q: 1. A shop sells animal dolls at a very steady pace of 10 per day, 310 days per year. The wholesale…
A: Given: The wholesale cost of the dolls is = $5 The annual interest rate to compute holding cost is =…
Q: 1 c(w,q) 29ʻ°/2w1W2 Determine the profit function t(p; w) by solving the profit maximization problem…
A: Answer: Given, Cost function: cw,q=12q22w1w2 To find the profit function, the total revenue function…
Q: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor…
A: Hey, thank you for the question, since there is multiple question posted, according to our policy we…
Step by step
Solved in 3 steps with 17 images
- 1. ThedemandfunctionforagoodisgivenbytheequationP=a−bQwhilethetotalcost function is TC = dQ2 + eQ + f, where a, b, d, e and f are positive constants. (a) Derive the equation for profit.(b) Derive an expression for the value of Q for which profit is maximised.Sampson Ltd produces two products that can be produced on either of two machines. Each month, only 5o0 hours of time are available on each machine. The time required to produce each item by hour and machine is: Machine Machine Product 1 Product 2 3 4 Month Month 1 Month 2 Month 1 Demand Demand Price Price Product 1 100 160 $45 $65 $10 Product 2 120 110 $35 The demand and price point for each product that customers are willing to pay are above. The company goal is to maximize revenue from sales from the next two months. Based on the provided information, how many constraints does this problem have excluding the non-negativity constraints?show solution An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000+20.2D +0.0001D2. The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly profit attainable? and Over what range of production is profit possible? Express answers in whole numbers and write the numerical values only.
- A toy manufacturer makes miniature trucks. The pricep(in dollar) and the demandx(numberof miniature trucks) are related by the equation 6000−600p=x. The total cost for the sametoy manufacturer to producexminiature trucks can be modeled byC(x) = 8x+ 450.(a) (10 points) Express the pricepin terms of the demandx. Find the revenueR(x) if themanufacturer sellsxminiature trucks in a month and find the domain of this function.(b) (10 points) Graph the cost and revenue functions on the same coordinate system for 0≤x≤6000.(c) (10 points) What is the minimum number of trucks the toy manufacturer must sell tobreak even?(d) (10 points) FindP′(300) and interpret the result.(e) (10 points) What is the exact profit from the sale of the 301stminiature truck?1. A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $600,000 per month. The variable cost per thousand board feet is $125.50. The price charged will be determined byp = $550 – (0.4)D per 1.00 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume. b. What is the domain of profitable demand during a month?A company estimates that the relationship between. unit price and demand per month for a potential new product is approximated by p= $100.00-$0.10D. The company can produce the product by increasing fixed costs $17,500 per month, and the estimated variable cost is $40.00 per unit. What is the demand that maximizes revenue and the maximum revenue? What is the optimal demand, D*, and based on this demand, should the company produce the new product? Why? (Work out the complete solution by differential calculus, starting with the formula for profit or loss per month.)
- ect of the utility commission's ruling on the profitability of the firm? 15 A company estimates that the demand for its product fluctuates with the price it charges. The demand function is q = 280,000 – 400p where q equals the number of units demanded and p equals the price in dollars. The total cost of producing q units of the product is estimated by the function C = 350,000 + 300q + 0.0015q? (a) Determine how many units q should be produçed in order to maximize annual profit. (b) What price should be charged? (c) What is the annual profit expected to equal? 16 Solve the previous exercise, using theMaximize profit 4D + 3WWith constraintsTime 3D + 2W ≤ 150Cost 2D + 4W ≤ 220D, W ≥ 0 We saw the best point was (20, 45) with profit 215. Use this problem and the notes to answer the following (except part 4):1 write true or false and then explain either response to this – the range of optimality on the D variable refers to how much the value 20 in the best point can go down or go up and this point is still the best,2 write true or false and the explain either response to this – the range of feasibility of the time constraint refers to the value 150 and how much if can change and the best point is still (20, 45),3 write true or false and explain either response to this – the shadow price of .125 on the cost constraint means that if the right hand side of the constraint (the 220) is anywhere between 100 and 300 then each 1 unit increase in this RHS (say from 100 to 101) will increase profit by 12.5 cents and any 1 unit decrease in this RHS will decrease profit 12.5 cents,4 write true or…4. Optimize the following function and comment about the findings. y =-5x; +10x, + x,x, - 2x{ +4x; +2x,x, - 4x 7. Minimize the cost of 434 units of production for a firm whenQ = 10K'L and P, = 28, P.=10 by finding the critical values and using the bordered Hessian to satisty the 1" order necessary and 2 order suficient condition.
- Each time a song is played on the radio, the record company and the songwriter are paid a royalty of $0.30.Of the total, 75% goes to the company and the rest to the writer. If on a network of 50 radio stations, a certainsong is played 4 times a day during the first week and then 20 times a day for the next three weeks, how muchdoes the network owe in royalties for the four weeks? How much do the record company and the songwriterreceive eachQuestion 3 to the cost of producing the (x + 1)st item? a Can you think of a cost function, so that the marginal cost at any r is exactly equal If yes, describe as many such functions as possible. If not, show why such a function cannot exist. Type here to search 7:00 PM ENG 4/27/2021 Esc Lock F1 F2 F6 F3 F4 F5 F7 Home End Delete F8 F9 F10 F11 F12 Insert %23 $4 & * 7. 4 5 6 Backspace 80 W E R T Y U S D F G H J K L B N M Alt Alt PrtSc Ctrl PgUpProblem 1. During your first month as an employee at Greenfield Industries (a large drill-bitmanufacturer), you are asked to evaluate alternatives for producing a newly designed drill bit on aturning machine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previous employeewho could not finish the analysis, but she has given you the following information: An old turningmachine valued at $350,000 exists (in the warehouse) that can be modified for the new drill bit.The in-house technicians have given an estimate of $40,000 to modify this machine, and they assureyou that they will have the machine ready before the projected start date (although they havenever done any modifications of this type). It is hoped that the old turning machine will be able tomeet production requirements at full capacity. An outside company, McDonald Inc., made themachine seven years ago and can easily do the…