Question

Suppose the market price that a firm can sell its product for is a function of how much it and the firm's competitor produce so that p = 136 - (x1 + x2) where p is the selling price, x1 is the firm's production, and x2 is the competitor s production. The firm's cost function is 28 + 3.6*x1. If the firm's competitor produces x2 = 27 units, how much should the firm produce if it wants to maximize the profit?

Answer #1

"The amount of product a firm can produce in one week as a
function of its capital investment K and its labor L and is given
by x = ?(KL) where x is the number of units the firm produces in
one week, K is the number of machines, and L is the number of
man-hours per week. Assume that K is fixed at 11 machines. The only
expenses are the cost to operate the machines and wages for the...

"The amount of product a firm can produce in one week as a
function of its capital investment K and its labor L and is given
by
x = √(KL)
where x is the number of units the firm produces in one week, K is
the number of machines, and L is the number of man-hours per week.
Assume that K is fixed at 7 machines. The only expenses are the
cost to operate the machines and wages for the...

The weekly demand function for x units of a product
sold by only one firm is p = 400 − 1/2x dollars, and the average
cost of production and sale is
C = 100 + 2x dollars.
(a) Find the quantity that will maximize profit.
units
(b) Find the selling price at this optimal quantity.
$ per unit
(c) What is the maximum profit?
$
The weekly demand function for x units of a product sold by only
one firm is...

The price of a product in a competitive market is $500. If the
cost per unit of producing the product is 140 + 0.1x
dollars, where x is the number of units produced per
month, how many units should the firm produce and sell to maximize
its profit?
units

The weekly demand function for x units of a product
sold by only one firm is
p = 300 −
1
2
x dollars,
and the average cost of production and sale is
C = 200 + 2x dollars.
(a) Find the quantity that will maximize profit.
units
(b) Find the selling price at this optimal quantity.
$ per unit
(c) What is the maximum profit?

The weekly demand function for x units of a product
sold by only one firm is
p = 600 −1/2x dollars
,
and the average cost of production and sale is
C = 300 + 2x dollars.
(a) Find the quantity that will maximize profit.
units
(b) Find the selling price at this optimal quantity.
$ per unit
(c) What is the maximum profit?
$

1. A ﬁrm has two variable factors of production, and its
production function is f(x1,x2) = x1/2 1 x1/4 2 . The price of the
output is 6. Factor 1 receives the wage $2, and factor 2 receives
the wage $2. a. How many units of each factor will the ﬁrm demand?
b. How much output will it produce?
2. Beth produces software. Her production function is f(x1,x2) =
3x1 + 2x2, where x1 is the amount of unskilled labor...

Suppose a firm has production function f(x1, x2) = x1 + x2. How
much output should the firm produce in the long run?

The weekly demand function for x units of a product sold by only
one firm is p = 800 − 1 /2 x dollars, and the average cost of
production and sale is C = 300 + 2x dollars. (a) Find the quantity
that will maximize profit_____ units
(b) Find the selling price at this optimal quantity. $_____ per
unit
(c) What is the maximum profit?________

Consider a firm with production function given by f(x1, x2) =
(x1)^1/4 (x2)^1/2 :
Assume the prices of inputs 1 and 2 are w1 and w2, respectively,
and the market price of the product is p.
(a) Find the levels of the inputs that maximize the profits of
the firm (X1, X2)
(b) Derive the supply function of the firm (i.e., y = f (x 1 ; x
2 ))

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 11 minutes ago

asked 51 minutes ago

asked 56 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago