To Sir or Ma'am: I am the proud owner of a big Texas company that manufactures...
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To Sir or Ma'am: I am the proud owner of a big Texas company that manufactures and sells oil barrels. I've got a guy who compiled enough data to fill my 10-gallon hat, but don't know nothing about how to use the equations he came up with. This is all that he can tell me for sure: • The demand for oil barrels is given by the equation: 2p-2,400,000 = 2q - 4469²-800g where p is the price (in dollars) we charge per million barrels and q (in millions of barrels) is the number of barrels we sell. The cost (in dollars) we produce q millions of barrels is given by the equation: C=q¹-250q¹ +20,000q² +500g +1,500. I also know from personal experience that there formulas aren't worth a darn if q is more than 90 million barrels. So, here's what I'd like to know: • Right now, we're slated to produce 20 million barrels. Am I even going to make a profit? If so, how much? Is there a gen production level? • I've been trying to get a better handle on my margins. What's the formula for my marginal cost (in dollars per million barrels) and marginal revenue (in dollars per million barreis)? At what production level is my marginal cost the most and where is it the least? . Lastly, let me be a straight-shooter with y'all. I really only care about profit. At what level of production is my profit the most? Thanks for all your help. Sincerely, JRex Wynne To loval notubong Ja Mono gaisum slona onnyWel (ering 3) (b) Sitong sumquoo od al indwo 11 Selonad molllim 02 J. Rex Wynne, Owner Wynne Barrels Answer all questions and show all of your work. Answers which are not justified with appropriate work will receive 0 points. All calculations performed using a calculator must be shown to receive any credit. 1. Rex Wynne informs you that his company, Wynne Barrels, is slated to produce 20 million barrels of oil and needs to know whether he is going to make a profit. In addition, Wynne Barrels also needs to know a general equation to find the profit at any given production level. (a) (2 points) Solve the following equation that models the oil barrel production 2p-2,400,000=2q³-4469²-800g, for price p to determine the price-demand equation. to anoillum ni p noltarpa (b) (2 points) Find the revenue function R(q) = pq. anicg (c) (2 points) Find the profit function P(q) = R(q)-C(q). o antich nohoubong ni A Vist plonde-täylinte e dom Bare vin ac nouobong (d) (2 points) Is Wynne Barrels making a profit at a production level of 20 million barrels? If so, what is the company's profit? lovel componie wanny W me To Sir or Ma'am: I am the proud owner of a big Texas company that manufactures and sells oil barrels. I've got a guy who compiled enough data to fill my 10-gallon hat, but don't know nothing about how to use the equations he came up with. This is all that he can tell me for sure: • The demand for oil barrels is given by the equation: 2p-2,400,000 = 2q - 4469²-800g where p is the price (in dollars) we charge per million barrels and q (in millions of barrels) is the number of barrels we sell. The cost (in dollars) we produce q millions of barrels is given by the equation: C=q¹-250q¹ +20,000q² +500g +1,500. I also know from personal experience that there formulas aren't worth a darn if q is more than 90 million barrels. So, here's what I'd like to know: • Right now, we're slated to produce 20 million barrels. Am I even going to make a profit? If so, how much? Is there a gen production level? • I've been trying to get a better handle on my margins. What's the formula for my marginal cost (in dollars per million barrels) and marginal revenue (in dollars per million barreis)? At what production level is my marginal cost the most and where is it the least? . Lastly, let me be a straight-shooter with y'all. I really only care about profit. At what level of production is my profit the most? Thanks for all your help. Sincerely, JRex Wynne To loval notubong Ja Mono gaisum slona onnyWel (ering 3) (b) Sitong sumquoo od al indwo 11 Selonad molllim 02 J. Rex Wynne, Owner Wynne Barrels Answer all questions and show all of your work. Answers which are not justified with appropriate work will receive 0 points. All calculations performed using a calculator must be shown to receive any credit. 1. Rex Wynne informs you that his company, Wynne Barrels, is slated to produce 20 million barrels of oil and needs to know whether he is going to make a profit. In addition, Wynne Barrels also needs to know a general equation to find the profit at any given production level. (a) (2 points) Solve the following equation that models the oil barrel production 2p-2,400,000=2q³-4469²-800g, for price p to determine the price-demand equation. to anoillum ni p noltarpa (b) (2 points) Find the revenue function R(q) = pq. anicg (c) (2 points) Find the profit function P(q) = R(q)-C(q). o antich nohoubong ni A Vist plonde-täylinte e dom Bare vin ac nouobong (d) (2 points) Is Wynne Barrels making a profit at a production level of 20 million barrels? If so, what is the company's profit? lovel componie wanny W me
Expert Answer:
Answer rating: 100% (QA)
a To solve for the pricedemand equation we need to rearrange the equation so that price p is on one ... View the full answer
Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
Posted Date:
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