Q MC VC FC TC AVC ATC 30 30 1 12 22 26 3 20 72 14 4 72 25.5 5 50 152 24.4 a) Fill in the blanks. b) If the price of this good is so low that it is below the minimum AVC, should the firm produce at all? Why or why not?
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- 1. The cost function for a commodity is given by C(x) - 200+12x+0.1x² (S) and the demand funct is p-300-0.02x ($/unit) where x- quantity (demanded and produced). (a) What is the profit function for this commodity? (b) Find the marginal profit function. (c) What is the marginal profit when x-10?! (d) What does this marginal profit tell you? (e) Find the level of demand at which profit is a maximum. Show how you do this using calculus. (1) What is the maximum profit, and what is the selling price that realizes this profit? Ans: R(x)-300x-0.02x², P(x)=-0.12x² +288x-200, P'(10) - 285.6 (S), approximate increase in profit from selling one more unit when sales are at 10 units, solving P'(x)-0 gives max at unit. x-1200 units, max profit - $172,600, price = 300-0.02(1200)-$276 per80-D The demand function for a product marketed by a company is p where D is the number of units and p is the price per unit. Determine the value of D and the total amount that will achieve maximum revenue.Situation: Lettuces and strawberries have almost doubled in price, and the produce rep says this will likely be the case for a few months until the market can recover. What are you likely to see over the next one to two months as far as food cost?
- When there is increase in demand and decrease in supply, equilibrium price: (a) Falls (c) Constant (d) None of these ention ng fo (b) Rises(a) What is the profit-maximizing level of output and how much daily profit will the producer below earn if the price of pizza is $ 2.50 per slice? MC S/slice ATC AVC 2.50 1.40 slices/day 570Do consumer behavior strategic recommendations- Words Required: 600
- The best definition of the value of a good today is the current cost of it production O its value in a current competitive market the purchase price its face value its historical cost as determined by accountants todayIs Fuel a variable, fixed or overhead cost?COURSE: MICROECONOMICS - TAX REGULATIONS The local diesel market is represented by Q = (912 - P)/12.5 and Q = (P - 315)/11where P is in dollars (USD) per liter of fuel and Q shows liters of fuel (in millions). Currently a tax of USD 130 per liter of diesel is charged.It is requested:(a) Calculate the amount (Q) that is transacted after the tax has been applied.b) Show in detail the calculations of a). Is there any difference between the price observed by suppliers and demanders? If so, what is the price observed by the producer and what is the price observed by the consumer? how much is the government's revenue? If there is an efficiency loss, how much is it? GRAPHc) At present, there are arguments in favor of increasing the tax on diesel and others in favor of decreasing it (at least temporarily). Mention at least ONE argument in favor of increasing this tax and ANOTHER argument in favor of decreasing it. And finally, conclude in favor of which argument you are in favor of.
- COURSE: MICROECONOMICS - TAX REGULATIONS The local diesel market is represented by Q = (912 - P)/12.5 and Q = (P - 315)/11where P is in dollars (USD) per liter of fuel and Q shows liters of fuel (in millions). Currently a tax of USD 130 per liter of diesel is charged.It is requested:(a) Calculate the amount (Q) that is transacted after the tax has been applied. Already solve few hours agob) Show in detail the calculations of a). Is there any difference between the price observed by suppliers and demanders? If so, what is the price observed by the producer and what is the price observed by the consumer? how much is the government's revenue? If there is an efficiency loss, how much is it? Already solve few hours agoc) At present, there are arguments in favor of increasing the tax on diesel and others in favor of decreasing it (at least temporarily). Mention at least ONE argument in favor of increasing this tax and ANOTHER argument in favor of decreasing it. And finally, conclude in…The demand for q units of a product depends on the price p (in dollars) according to 512 P q= - 1, for p > 0. Find and explain the meaning of the instantaneous rate of change of demand with respect to price when the price is as follows. (a) $16 (b) $64 Interpret the instantaneous rate of change. O If price decreases by the absolute value of this amount, the demand will drop by 1 unit. O If price increases by $1, the demand will increase by the absolute value of this number of units. If price decreases by $1, the demand will drop by the absolute value of this number of units. If price increases by the absolute value of this amount, the demand will drop by 1 unit. If price increases by $1, the demand will drop by the absolute value of this number of units. Interpret the instantaneous rate of change. O If price decreases by the absolute value of this amount, the demand will drop by 1 unit. O If price increases by $1, the demand will increase by the absolute value of this number of units.…(a) What is the profit-maximizing level of output and how much daily profit will the producer below earn if the price of pizza is $ 2.50 per slice? MC S/lice ATC AVe 2.50 1.40 slices/day S70