Price (per unit) 9 MO -8 Quantity (per period) (Figure: Marginal Decision Rule) If P1 is the market price, and if this firm has decided to produce any output, it should produce: A) where MR> MC. OB) quantity q2. O quantity q1 where MR> MC. OD) a quantity greater than q1 but less than q2.
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- d Profit(x) dx 9) Find the marginal profit function. 10) How many units should they sell in order to maximize their profits? 11) What price should they charge in order to maximize their profits?Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per tote) (Totes) (Dollars) (Dollars) (Dollars) (Dollars) 10.00 44,000 16.00 44,000 40.00 44,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $44,000 per day. In other words, if it shuts down, the firm would suffer losses of $44,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per tote.Action No Recycling Recycling Chemical Lab (Dollars) 2,400 2,100 Profit Water Park (Dollars) 1,100 1,900 Total (Dollars) Total economic profit is highest when the recycling production method is When the chemical lab uses the recycling method, the water park earns $1,900 - $1,100 = $800 more per week than it does with no recycling. Therefore, the water park should be willing to pay up to $800 per week for the chemical lab to recycle water. However, the recycling method decreases the chemical lab's economic profit by $2,400 - $2,100 = $300 per week. Therefore, the chemical lab should be willing to use the recycling method if it is compensated with at least $300 per week. Suppose the water park has the property rights to the lake. That is, the water park has the right to a clean (unpolluted) lake. In this case, assuming the two firms can bargain at no cost, the chemical lab will the recycling method and will pay the water park per week. Now, suppose the chemical lab has the property…
- Suppose for a single firm thatP = 15TC = 3Q + 2Q2 (a) What is the profit-maximizing quantity? (b) What is the profit at the profit-maximizing quantity? Only typed AnswerBill runs a business that makes custom-printed towels. It will cost him $8 each to purchase and print on towels, and he will have to pay a rent of $1,700 per month for him workshop. Based on market research, Bill estimates that he can sell custom towels for $25 each. a) Calculate the number of towels he needs to sell per month to break-even. towels b) Calculate the break-even in dollars (round off to the nearest cent).A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p= 75 -0.10 (D is the demand or quantity sold per month and p is the price in doilars). The fbxed cost is $1.000 per month and the variable cost is $30 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? a. The maximum profit per month for this product is S (Round to the nearest dollar.) b. The range of profitable demand during a month is from units to units. (Round up the lower limit and down the upper limit to the nearest whole number.)
- Number of Consumers Who Try the Product Number of Repeat Customers 10 million 10 million Product Energy bar A Energy bar B In the table above, the profit from repeat customers will equal the cost of the advertisement if there are Profit per Repeat Customer 5 million 1 million $6 6 Profit from Repeat Customers $30 million 6 million Cost of Advertisement $10 million 10 million million repeat customers. (Enter your response rounded to two decimal places.)[Select all that apply] Let the cost of producing a books be 100+ x and a price - demand equation be r + p (a.) P(x) 100 + 2 (b.) P(x) = (800x) (100+ x) (c.) P(x)= x (800) (100 + x) - (d.) P(x) = (800x) (100+z) - (100+ x) Oc b O 10 dA company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=60-0.1D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $2,000 per month and the variable cost is $20 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? COLL a. The maximum profit per month for this product is $. (Round to the nearest dollar.) BOX AI
- A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=75-0.1D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,000 per month and the variable cost is $30 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? a. The maximum profit per month for this product is S (Round to the nearest dollar.) b. The range of profitable demand during a month from units to units. (Round up the lower limit and down the upper limit to the nearest whole number.)A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=75-0.1D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,700 per month and the variable cost is $20 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month?A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costs of MC = 5 + 14q, and average variable costs of AVC = 5 + 7q. (a) What are the firm’s variable costs (VC)? (b) What is the firm’s total cost function? (c) If the price is $75, how much does the firm supply? (d) Does the firm continue to supply this quantity in the short-run? (e) Suppose there exists a standard market demand function from consumers (downward slopping). Please provide a logical discussion about how the market achieves short-run equilibrium.