Question

Your hospital has a demand function given by P = 404 - 2Q where P is...

Your hospital has a demand function given by P = 404 - 2Q where P is the price of hospital care and Q is the quantity of hospital care. The marginal revenue (MR) function is given by MR = 404 – 4Q. The total cost function (TC) is given by TC = 300 + 4Q + 8Q2 and the marginal cost (MC) is given by MC = 4 + 16Q.

  1. Find the total revenue (TR) function which is a function of quantity (Q) and show your work.

  1. Fill in the blanks, A, B, C and D and show your work to find your answers.

P

Q

TR

TC

AC

MC

Profit

404

0

0

300

-300

394

5

1970

520

104

44

1450

10

C

374

A

D

364

20

B

3580

179

284

354

25

8850

5400

216

E

344

30

10320

7620

254

  1. Find the output that maximizes total revenue and show your work
  1. Find the output that maximizes profit and show your work
  1. Consider the four new management tools that have been introduced during the past four decades: benchmarking, total quality management, reengineering and the learning organization. Which tool includes Six Sigma aims to improve the process performance and achieve high levels of quality by investigating and eliminating causes of defects and minimizing process and product variability.

Homework Answers

Answer #1

A.

P = 404-2Q --------- (1)

Multiply above equation by Q

P*Q = 404Q - 2Q^2

Or

TR = 404Q - 2Q^2

B.

P Q TR TC AC MC Profit
404 0 0 300 -300
394 5 1970 520 104 44 1450
384 10 3840 1140 114 124 2700
374 15 5610 2160 144 204 3450
364 20 7280 3580 179 284 3700
354 25 8850 5400 216 364 3450
344 30 10320 7620 254 444 2700

C.

Revenue is maximized, when output = 30

At this level, TR = 10320

D.

Profit is maximized, when output = 20  

At this level, profit = 3700 that is maximum among all the output level.

Pl. repost other unanswered questions for their proper answers!

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
the demand equiation of a goof is given by P+2Q=20 abd the total cost function is...
the demand equiation of a goof is given by P+2Q=20 abd the total cost function is Q3-8Q^2+20Q+2 a) find the level of output that maximizes total revenue b) find the maximum profit and the value of Q at which it is achieved. verify that, at this value of Q, MR=MC
a) Assume the firm operates in the monopoly market in the long run with the demand...
a) Assume the firm operates in the monopoly market in the long run with the demand function P = 100-Q and TC = 640 + 20Q with TC showing the total cost of production, Q and P respectively of output quantity and price. Using the information above, publish i) Total revenue function (TR) ii) Marginal revenue (MR) iii) Marginal cost function (MC) iv) Determine the level of price and quantity of production that maximizes profit v) Determine the amount of...
Given the following demand function for a community hospital: P = 5000 – 0.5Q, where P...
Given the following demand function for a community hospital: P = 5000 – 0.5Q, where P is the price for hospital services, and Q is the quantity of hospital services per volume demanded. Its marginal cost function is P = 1000 + 1.5Q, where P is the marginal cost of producing hospital services, and Q is the quantity of hospital services provided. The hospital has an average total cost of $2000 per service provided. A. Use the Twice As Steep...
Assume the demand schedule below and TC function below to find maximize profit, Total Revenue (TR),...
Assume the demand schedule below and TC function below to find maximize profit, Total Revenue (TR), Total Cost(TC), and max profit. Using the MR=MR (Marginal Revenue) approach or Excel (Solver). P = 10 - .5Q TC = 10 + Q - .4Q2
Example 1: Suppose a monopolist faces an inverse demand function as p = 94 – 2q....
Example 1: Suppose a monopolist faces an inverse demand function as p = 94 – 2q. The firm’s total cost function is 1.5q2 + 45q + 100. The firm’s marginal revenue and cost functions are MR(q) = 90 – 4q and MC(q) = 3q + 45. How many widgets must the firm sell so as to maximize its profits? At what price should the firm sell so as to maximize its profits? What will be the firm’s total profits?
The demand function for sunshades is given as: ?=270−2?P=270−2Q where P is the price paid for...
The demand function for sunshades is given as: ?=270−2?P=270−2Q where P is the price paid for a sunshade and Q is the number of sunshades demanded. The fixed cost is 460 while the cost per shade is 70. When profit is maximised, the number of sunshades sold =Answer The maximum profit = Answer When profit is maximised the marginal revenue, MR = Answer When profit is maximised the marginal cost, MC = Answer
Consider a firm with the demand function P(Q)=(50-2Q), and the total cost function TC(Q)=10,000+10Q. Find the...
Consider a firm with the demand function P(Q)=(50-2Q), and the total cost function TC(Q)=10,000+10Q. Find the profit maximizing quantity. Calculate the profit maximizing price (or the market price). Hint: MR(Q)=(50-4Q),
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue...
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost curve are given as follows Q = 160 – 4P TR – 40Q – 0.25Q² MR = 40 – 0.5Q TC = 4Q MC = 4 Answer the following three questions: (You don't need to show your work, just type your answer as a number) a) What is the optimum output for Barbara? b) What is the market price? c)...
Given the following information for a monopolistic competitor: Demand: P = 68 – 7(Q) Marginal revenue:...
Given the following information for a monopolistic competitor: Demand: P = 68 – 7(Q) Marginal revenue: MR = 68 – 14(Q) Marginal cost: MC = 2(Q) + 8 Average total cost at equilibrium is 22 1. At what output (Q) will this firm maximize profit?     2. At what price (P) will this firm maximize profit?     3. What is the total revenue (TR) earned at this output level?    4. What is the total cost (TC) accrued at this output?     5. What...
2. Now consider a team that chooses winning percentage, WP, as its choice variable. Let its...
2. Now consider a team that chooses winning percentage, WP, as its choice variable. Let its total revenue and total cost functions be given by TR = 100WP – 50WP2 TC = 60WP The resulting marginal revenue and marginal cost expressions are                     MR = 100 – 100WP MC = 60 a.) Find the optimal winning percentage of a team that maximizes profit. b.) Find the optimal winning percentage of a team that maximizes WP subject to TR–TC≥0. Compare your answer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT