B(Q) = 36Q – 5Q2 and C(Q) = 4 + Q2
Show your work to determine the level of output (Q) at which we find maximum net benefits. Present the numerical values of benefits [B(Q)] and costs [C(Q)] where we find maximum net benefits. Provide/create a business scenario to explain your answers.
Assume that total benefits for a given level of output are given as B(Q) = 100 + 20Q - 2Q2, and that C(Q) = 20 + 10Q. Assume that Q is in thousands units and benefits and costs are in dollars. Write out the net benefit equation: What are the net benefits when Q = 10? Explain result meaning based on the economic theory. Write out the equation for marginal benefits. What is the benefit from selling an additional unit...
Please show work!
Homework Assignment 1 You must show all your work to earn points ECON 3125 SP19 Name: 1. Use the graph below to answer the questions: 80 70 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P.-a-bQ a. b. State the equation for the demand function implied in the graph using the format Q.-c-dP c. Find the equation for Total Revenue, where TR...
7. A manger of an engineering firm faces the following benefit and cost structure: B(Q) = 300Q – 6Q^2 and C(Q) = 4Q^2 What is the quantity that the manager of the firm should produce to maximize the total benefits? . What is the quantity that the manager of the firm should produce to maximize the net benefits? The manager is asked to determine the maximum net benefit at a net benefit maximizing level of output. He calculates output?
I know that A) Q*=0 and firm should
shut down and B) profits = -$1,000. But do not understand how to
get C.
PLEASE SHOW ALL STEP-BY-STEP WORK ON HOW TO SOLVE FOR C)
LEVEL OF OUTPUT WHERE AVC IS MINIMIZED?
3. A perfectly competitive firm sells its product for $100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(Q)= -20Q +500 MC(Q) = Q2 - 40Q+500 a. Determine...
1. Suppose that a quantiies q and q2, respectively, and that it sells them at prices p1 and p2, respectively Suppose that the company's production costs are sporting goods company manufactures basketballs and soccer balls in given by C 2q 2q 10. (a) Find the maximum profit that the company can make assuming that prices are fixed the price p (b) Find the rate of change of the maximum profit you found in part (a) increases. Is it wise for...
6. Given the following function TR(Q) -600Q -40 TC(Q) = 1000 + 10,200 a. b. c. d. e. Find the revenue maximizing level of output (check 2ad order conditions also), Find the maximum revenue Find the corresponding profit function Find the profit maximizing level of output (check 2nd order conditions also) Find the maximum profit
1. Determine the returns to scale of the following functions. Show your work. a) Q = 4K + 3L b) Q = 2KL c) Q = 10K/L 2.For each of the following production functions below, find the LR total cost as a function of Q: TC(Q) LR average total cost as a function of Q: ATC(Q) How does LR average total cost vary with Q? (Hint, find the derivative: dATC(Q)/dQ) Does this cost function exhibit economies...
Show work please
A monopolist's inverse demand function is P= 150 – 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2(Q2) = 2Q2: a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q1 + Q2 = Q.) MR(Q) = 150-C6 Q4-06 Q2 b. Determine the profit-maximizing level of output for each facility. Output for...
This is a multipart question. Assume that total benefits for a given level of output are given as B(Q) = 100 + 20Q - 2Q2, and that C(Q) = 20 + 10Q. Assume that Q is in thousands units and benefits and costs are in dollars. 1. Write out the net benefit equation: 2. What are the net benefits when Q = 10? Explain result meaning based on the economic theory. 3.Write out the equation for marginal benefits. What is...
In the figure above, if the government provides level Q2 of the public good: Group of answer choices a. it leads to a welfare gain because it creates jobs in the public sector. b. it is the optimal level. c. it is less than the optimal level Q3. d. it leads to a welfare loss because the MC is less than the sum of the marginal benefits. Refer to the figure above. A yardstick pricing proposal will require: Group of...