Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter B, Problem 2E
To determine
To evaluate the total, marginal and average profit functions from the table given in the previous question
To determine
To evaluate theplotting of the total profit and marginal profit functions in a single graph.
To determine
To evaluate thatif the policies described in part (a) and part (b) are likely to be successful
To determine
To evaluate thatif the policies described in part (a) and part (b) are likely to be successful
To determine
To evaluate the total profit at the profit maximizing output level
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Students have asked these similar questions
2) The owner of a restaurant that you are thinking of purchasing, tells you for x customers
per week the weekly cost and revenue in dollars is C(x) = 15000+2x and R(x) = 500x-3x²
a) Find the profit function P(x)
b) Find the break-even quantities rounding properly to a whole number. (Hint: Use the
Quadratic formula)
c) Why is the minimum break-even quantity important?
The total revenue function for a product is given by
R=655x
dollars, and the total cost function for this same product is given by
C=19,250+70x+x2,
where C is measured in dollars. For both functions, the input x is the number of units produced and sold.
a. Form the profit function for this product from the two given functions.
b. What is the profit when
25
units are produced and sold?
The total cost and the total revenue (in dollars) for the production and sale of x ski jackets are given by C(x) = 28x + 20,160 and R(x) = 200x - 0.2x2 for 0sxs 1000.
Find the value of x where the graph of R(x) has a horizontal tangent line.
Find the profit function P(x).
Find the value of x where the graph of P(x) has a horizontal tangent line.
Graph C(x), R(x), and P(x) on the same coordinate system for 0 sxs 1000. Find the break-even points. Find the x-intercepts of the graph of P(x).
Chapter B Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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- The total revenue function for a product is given by R=655x dollars, and the total cost function for this same product is given by C=19,250+70x+x2, where C is measured in dollars. For both functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 25 units are produced and sold? c. What is the profit when 43 units are produced and sold?arrow_forwardAs a producer and seller of some commodity, you have learned that, if you produce and sell x itmes in a particular month, the following functions can be used to find the cost and revenue: Revenue: R(x)=150x-x^2 and Cost: C(x)=3000+20x. (a) Write a simplified formula for your profit in a particular month, P(x)=R(x)- C(x) (b) Find the "break-even" point(s) (c) How many items should you produce and sell in a month in order to achieve a maximum profit? (d) What is the maximum possible monthly profit? This is the problem and I cannot solve the c and d, could you please help me?arrow_forwardFind the marginal and average functions for the following total functions and graph the results. Total - cost functions: (a) C = 3Q2n+ 7Q +12 Total -revenue function: (b) R = 10Q - Q2 Total -product function: (c) Q = aL + bL2 - cL3 (a, b, c > 0)arrow_forward
- Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C (z), the cost of producing z items (of whatever they are selling). This question deals with just the cost function C (z). Problem Set question: The cost, in dollars, of producing z units of a certain item is given by C (z) = 5z – 8/I – 3. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost is Numberarrow_forwardA factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both functions of the number of tires, n.a) Describe what is meant by C'(4) = 8b) Generate a mathematical equation, using function notation, to model the following statements: for (b) + (c) "The marginal revune for 15 tires sold decreases by $1."c) "The revenue at 3 tires equals the change in cost at 5 tires"arrow_forward2. Find the total cost function given, the fixed costs are $200 and the variable cost per unit is a quadratic function with vertex (50,100) and v-intercept (0,110).arrow_forward
- The total cost and the total revenue (in (A) dollars) for the production and sale of x ski jackets are given by C(x)=22x+22,200 and R(x)=200x-0.2x² for 0 sxs 1000. Find the value of x where the graph of R(x) has a horizontal tangent line. Find the profit function P(x). (B) (C) Find the value of x where the graph of P(x) has a horizontal tangent line. (D) Graph C(x), R(x), and P(x) on the same coordinate system for 0 sxs 1000. Find the break-even points. Find the x-intercepts of the graph of P(x). (A) R(x) has a horizontal tangent line at x (B) The profit function P(x- (C) P(x) has a horizontal tangent line at x -0 (D) Choose the correct graph of C(x), R(x), and P(x) graphed together. OA AY 50000- 38700 22200 10000+ 0 0 Rox) PIN Q Ca 500 1000 E What are the break-even points? OA (150,25500) and (740.38480) OB. (225,23970) and (629,34632) OC. (150,26500) and (629,38480) D. (300.28050) and (629,38490) OB. 50000 33200 22200 10000 04 Rx) A Poo 500 1000 du OC. 50000- 33200 22200- 10000 0 0…arrow_forwardA firm will break even (no profit and no loss) as long as revenue just equals cost. The value of x (the number of items produced and sold) where C(x) = R(x) is called the break-even point. Assume that the below table can be expressed as a linear function. Find (a) the cost function, (b) the revenue function, and (c) the profit function. (d) Find the break-even point and decide whether the product should be produced, given the restrictions on sales. Fixed cost Variable cost Price of item $15 $300 $30 According to the restriction, no more than 17 units can be sold. (a) The cost function is C(x) =. (Simplify your answer.)arrow_forwardUse the equations for the total cost C and total revenue R to find the number x of units a company must sell to break even. (Round to the nearest whole unit.) C = 8950x + 220,000, R = 9857xarrow_forward
- Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C (x), the cost of producing z items (of whatever they are selling). This question deals with just the cost function C (x). Problem Set question: The cost, in dollars, of producing a units of a certain item is given by C (x) = 10x – 10T -9. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost isarrow_forwardSuppose a laptop manufacturer has the given total cost function and the given total revenue function. C(x) = 200x + 8000 and R(x) = 500x If 150 units are produced, find the total cost for this product.arrow_forwardConsider the following cost function: C(q) = 100 + 10q+q² (i) What are the formulas for the Total Fixed Cost (TFC), Total Variable Cost (TVC), Average Total Cost (ATC) and Marginal Cost? (ii) At what output level is Average Total Cost (ATC) lowest? What is the minimum Average Total Cost (ATC)? (iii)arrow_forward
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