Question

The price of a product in a competitive market is $500. If the
cost per unit of producing the product is 140 + 0.1*x*
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

Answer #1

5) The cost per unit of producing a product is 60 + 0.2x
dollars, where x represents the number of units produced per week.
The equilibrium price determined by a competitive market is
$220.
How many units should the firm produce and sell each week to
maximize its profit?
b) What is the maximum profit?

If the daily cost per unit of producing a product by the Ace
Company is 5 + 0.1x dollars, and if the price on the
competitive market is $50, what is the maximum daily profit the Ace
Company can expect on this product?

A firm sells its product in a perfectly competitive market where
firms charge a price of $80 per unit. The firm’s cost are: Total
Costs: C(Q) = 40 – 8Q + 2Qsquare
Marginal Costs: MC(Q) = – 8 + 4Q
a) How much should the firm produce in the short run (to maximize
profits)?
b) What are the firm’s short run profits or losses? (Profits =
Revenue – Total Costs)
c) What changes can be anticipated in this industry in...

A firm sells its product in a perfectly competitive market where
other firms charge a price of $70 per unit. The firm’s total costs
are C(Q) = 60 + 14Q +
2Q2.
a. How much output should the firm produce in the short
run?
units:
b. What price should the firm charge in the short run?
$ :
c. What are the firm’s short-run profits?
$ :

Please answer part 1.
The market for fabric has only one producer. Assume that daily
market demand for fabric is y = 100,000 - 100p, where y denotes the
quantity and p denotes the unit price. Also assume that producing y
units of fabric costs 100y.
1. How many units of fabric should the producer produce and sell
in order to maximize profits? Calculate the profit-maximizing price
and the profit.
2. Now suppose that to produce one unit of fabric...

1. Suppose a competitive firm previously set its price at $15
per unit to maximize its profit, which had been positive. Then the
market price falls to $12 and the firm adjusts in order to maximize
its profits at the decreased price. After these adjustments what
can we conclude about the firm’s quantity of output, average total
cost, and marginal revenue in terms of being higher, lower, or the
same as before?
2. At current output a profit maximizing competitive...

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...

Firm X, operating in a perfectly competitive market, can sell as
much or as little as it wants at the market price. The firm’s cost
function is C(Q) = 600 + 8Q + 6Q2.
At a market price of $140 per unit, what is the firm’s profit
maximizing quantity? What is their profit?
At a market price of $80 per unit, will the firm stay in
business in the short-run? If so, what quantity would they produce
and what would...

b. In a different competitive market, the market-determined
price is $25. A firm in this market is producing 10,000 units of
output, and, at this output level, the firm’s average total cost
reaches its minimum value of $25. Is this firm making the profit-
maximizing decision? Why or why not? If not, what should the firm
do?
c. In yet another competitive industry, the market-determined
price is $60. For a firm currently producing 100 units of output,
short-run marginal cost...

A firm manufactures a product that sells for $12 per unit.
Variable cost per unit is $8 and fixed cost per month is $1200.
Capacity is 1000 units per month. a. How much is the contribution
margin? __________ b. How much is the contribution rate?
___________ c. How many units must they sell per month in order to
break even? _________ d. How many units must they sell in order to
have a profit of $2,500 per month? ___________

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