A toy manufacturer's cost for producing q units of a game is given by C(q) =...

A toy manufacturer's cost for producing q units of a game is given by C(q) = 1460 + 3.5q + 0.0006q². If the demand for the game is given by p = 8.6 − (1/440)q. How many games should be produced to maximize profit? (Round your answer to the nearest integer.)

Expert Solution

milcah answered 2 years ago

A firm's total cost of producing Q units of output is C (Q) = 79 +...

A firm's total cost of producing Q units of output is C (Q) = 79 + 20Q. The inverse demand curve for the firm's product is P(Q) = 100-Q, where P denotes the price of the product. a) If the price of the product is set equal to the firm's marginal cost, what profit will the firm earn? b) If the firm charges a two-part tariff (a fixed fee plus a per unit price), how large is the fixed fee?...

A firm's total cost of producing Q units of output is C (Q) = 200 +...

A firm's total cost of producing Q units of output is C (Q) = 200 + 50Q. The inverse demand curve for the firm's product is P(Q) = 80-Q, where P denotes the price of the product. a) If the price of the product is set equal to the firm's average, how much will the firm produce? (5 points) Hint: choose the larger of the two numbers. Show your work. b) If the firm is under marginal cost pricing, how...

A competitive firm’s cost of producing q units of output is C =18 + 4q...

A competitive firm’s cost of producing q units of output is C = 18 + 4q + q2. Its corresponding marginal cost is MC = 2q + 4. a. The firm faces a market price p = $24. Create a spreadsheet with q = 0, 1, 2, . . ., 15, where the columns are q, R, C, VC, AVC, MC, and profit. Determine the profit-maximizing output for the firm and the corresponding profit. Should the firm produce this level...

Suppose that the cost of producing q appliances is c(q)=200-q+0.96q^2 and the demand function is given...

Suppose that the cost of producing q appliances is c(q)=200-q+0.96q^2 and the demand function is given by q=400-25p. Develop the total revenue, total cost (if not given), and profit functions. Explain these functions in few sentences. Compute the point elasticity of demand. Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result. Find the quantity that...

Your firm’s cost function for producing plexiglass is given by C(q) = 30 + 5q +...

Your firm’s cost function for producing plexiglass is given by C(q) = 30 + 5q + 0.25q2. You are currently producing q = 4 units, and you receive a request to produce and sell one additional unit. The difference between your marginal cost of producing one more unit and your average variable cost of producing 5 units is _____. (Input a number, such as "56", with no dollar sign or quotation marks.)

The cost of producing x units of a product is given by C(x)=700 + 90 x...

The cost of producing x units of a product is given by C(x)=700 + 90 x - 90 ln(x), where x>=1 Find the minimum average cost

The cost of producing 5-gallon water bottles is given by C(q) =0.005q2 +2q + 1000....

The cost of producing 5-gallon water bottles is given by C(q) =0.005q2 +2q + 1000. If 2000 5-galllon water bottles are produced, find the Total cost Average cost Marginal cost Marginal average cost.

Suppose that a competitive firm's marginal cost of producing output q is given by MC(q) =...

Suppose that a competitive firm's marginal cost of producing output q is given by MC(q) = 3+2q. Assume that the market price of the firm's product is $9. (a) What level of output will the firm produce? (b) Suppose that the average variable cost of this firm is given by AV C(q) = 3 + q. Suppose that the firm's fixed costs are known to be $3. Will the firm be earning a positive, negative, or zero profit in the...

A firm's total cost of producing Q units of output is C (Q) = 79 + 20Q. The inverse demand curve for the firm's product is P(Q) = 100-Q, where P denotes the price of the product.

A firm's total cost of producing Q units of output is C (Q) = 79 + 20Q. The inverse demand curve for the firm's product is P(Q) = 100-Q, where P denotes the price of the product. a) If the price of the product is set equal to the firm's marginal cost, what profit will the firm earn? b) If the firm charges a two-part tariff (a fixed fee plus a per unit price), how large is the fixed fee? How large...

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000,...

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit. At Q = 999, the firm's total costs is $______________. Why?

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