Question: The demand function for a good is P = 60 - 0.5 Q. The firm's total cost function to produce that good is given by

The demand function for a good is P = 60 - 0.5 Q.

The firm's total cost function to produce that good is given by the equation, TC = Q3 .

Write down the equations for total revenue and profit. Calculate the break-even points.

Estimate the total revenue and total costs at break-even.

Estimate the values of Q within which the firm makes (i) a profit (ii) a loss.

Estimate the maximum profit and the level of output for which profit is maximized.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Consider two quantity-setting firms that produce a homogeneous good. The inverse demand function for the good is p = A - b(q1 + q2). Firm i has a cost function C(qi) = ciqi, i = 1, 2. (a What is the...

Q:

MA +q is 2. Consider an industry with quantity-setting firms that produce a homogeneous good. The inverse demand function for the good is p = A-Q, where Q = 9 +9 + the aggregate quantity. All firms...

Q:

A)Peter, the owner, makes the same offer to the manager at each of his stores: "At the end of the year, give me $250,000 and you can keep any additional profit." Ann, a manager at one of the stores,...

Q:

12. Find the first and second derivatives of the following functions (a (b) (C) (d) (e) 13. Given the demand schedule P = 120 - 30 derive a function for MR. and find the output at which TR is a...

Q:

1. Assume that the domestic market of Soft Drink in country A is monopolized by one firms, Kirin. In this market, the inverse demand function is given by the following form: p (Q) = 1000 2Q, while...

Q:

1. The total cost function of a firm is TC = Q3 - 40 Q 2+ 14000 Q Question : a. How many units of goods must be produced so that the average cost (AC) is a minimum level? b. What is the minimum Total...

Q:

Hello expert, pease answer these (quantitive methods) questions. thank you so much Please solve the following exercises and write complete solution. Question # 1: An electronics firm decides to...

Q:

If f(x,y) = 6x^4- 17xy + 4y^5 then what is fyx? out of Select one: question a. None 72x-+ 17 C. -17 d. 54x4 e. 80 y VIOUS Pageor Business & neral / Quiz I If the demand function for a good is P = 10...

Q:

Consider a market with only one firm that has a cost function C(Q) = Q +2Q. Since, there is only one firm in the market, the price depends on the quantity produced by the firm. The relationship...

Q:

Show your work in an organized way. Don't forget to label the answers. Price $300 $200 MC $164 $75 $20 Regulated Price Demand 10 14 25 28 Quantity MR 1. (5 points) Under one form of government price...

Q:

When determining if there is evidence of a linear relationship between variables, OLS estimators must be ???? for the test to be valid a) normally distributed b) scattered c) a single variable...

Q:

What types of organizations should consider incorporation under the associations incorporation legislation of the states and territories? What reasons can you put forward for a body to incorporate...

Q:

Private equity investors or venture capitalist like to invest in preferred stock rather than common stock of a company because: Multiple Choice Preferred stock, if properly structured, will...

Q:

Mary Barnett case is taken from: "Thinking Critically" by John Chaffee, Ph.D. (Note: This fictional case is based on an actual case that was tried in May 1990 in Minneapolis, Minnesota.) On January...

Q:

6. Give three examples that nothing (doing nothing) can function as a cause.

Q:

2. To store it and

Q:

3. Give three examples from your own everyday life where a piece of communi-cation is structured into a linear sequence, i.e. B is the cause of A.