Question: Suppose a firm assesses its profit function as = -10 - 48Q + 15Q2 - Q3. a. Compute the firms profit for the following

Suppose a firm assesses its profit function as
π = -10 - 48Q + 15Q2 - Q3.
a. Compute the firm’s profit for the following levels of output: Q = 2, 8, and 14.
b. Derive an expression for marginal profit. Compute marginal profit at Q = 2, 8, and 14. Confirm that profit is maximized at Q = 8. (Why is profit not maximized at Q = 2?)

Step by Step Solution

★★★★★

3.33 Rating (183 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The profit function is p 10 48Q 15Q 2 Q 3 At outputs of 0 2 8 an... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

235-B-E-M-E (1182).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

A firm produces an output with the production function Q = KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for...

A firm produces output according to a production function Q = F(K,L) = min {2K,4L}. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $30 per hour and the rental rate on...

A firm produces output according to a production function Q = F (K, L) = min {4K, 8L}. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $ 60 per hour and the rental rate on...

Suppose a firm assesses its profit function as -10 48Q+15Q - Q a. Compute the firm's profit for the following levels of output: Q = 2,8, and

Question # 3 . Suppose a firm assesses its profit function as : = - 1 0 - 4 8 Q + 1 5 Q 2 - Q 3 a . Compute the firm's profit for the output levels of ) = ( 2 , 8 , 1 4 . b . Drive an expression for...

1. A business has the production function y= 4x (a) Suppose that the price of y is denoted by Py and the price of x is denoted by Px. Use the given information to construct a supply curve for this...

D Question 17 2.5 pts The table below shows the production function for a local, high-end pizza shop named Mario and Luigi. The left column shows the number of workers employed by this pizza shop,...

echr Section C Question 5 Production Function Estimation. Suppose that you have a random cross section of firm- level data, with information on output, labor and capital. In logs, (uni, hi, k : i =...

Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Dec. 1 Rhoades invested $20,000 in the business in exchange for common stock. 2 Paid $1,200 cash for...

Based on the information available at www.Cisco.com describe Cisco Systems positioning strategy.

Question: Part IFor a company holding significant net financial assets ( NFA ) , its risk in operation should be its equity risk; and its required rate of return of operation should be its required...

A negotiable instrument drawn by minor is (i) void. (iii) valid. (ii) voidable. (iv) invalid.

Revenue at a major cellular telephone manufacturer was $1.4 billion for the nine months ending March 2, up 97 percent over revenues for the same period last year. Management attributes the increase...

You are the manager of a firm that sells a leading brand of alkaline batteries. A file named Q12.xls with data on the demand for your product is available online at www.mhhe.com/baye7e. Specifically,...

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 2 percent. If, as a result of this price increase, the volume of all cereal sold by Big G dropped...

If you place a market buy order for 100 shares, at what price will it be filled? (Round your onswer to 2 decimal places.) b. If you place a market sell order for 100 shares, at what price will it be...

If Z a/2 = 2.25400, determine the proportion of (1-a) 100% confidence intervals that will not capture u when the confidence intervals are computed as m+/- A a/2 (O m )?

What has to happen for a stock that pays a 1% quarterly dividend during the past 4 quarters to experience a negative total return over the same year