Calculate the output level which maximizes profits

Assignment Help Microeconomics
Reference no: EM133552788

1. Defining Q to be the level of output produced and sold, assume that the firm's cost function is given by the following relationship:

                              TC = 100 + 2Q + 0.30Q2

            Furthermore, assume that the demand for the output of the firm is a function of price P given by the following relationship:

                              Q = 24 - 0.5P

            (a) Defining total profit as the difference between total revenue and total cost, express in terms of Q the total profit function of the firm.

            (b) Determine the output level where total profits are maximized.

            (c) Calculate total profits and selling price at the profit maximizing output level.

2. Suppose a firm assesses its profit function as:

                              p = -10 - 48Q + 15Q2 - Q3

            Calculate the output level which maximizes profits.

Reference no: EM133552788

Questions Cloud

How do you see the interplay of the sociocultural approach : How do you see the interplay of the sociocultural approach to creativity with the cognitive approach?
Describe the cultural influences on the family : Describe the cultural influences on the family. Describe a family tradition such as birthday and holiday celebrations or other special occasions.
Describe benefits of bilingual schooling both for children : Describes the benefits of bilingual schooling both for children whose first language is English and for children who are learning English as another language.
How did the early childhood educator become involved : How did the early childhood educator become involved? How did the involvement change the play experience? In what other ways could the early childhood educator
Calculate the output level which maximizes profits : Determine the output level where total profits are maximized and Calculate total profits and selling price at the profit maximizing output level
What are the characteristics of gothic sculpture : What are the characteristics of Gothic sculpture? Select one image to discuss and include the image with additional information in your first post.
Discuss impact of mendicant orders on church architecture : Discuss the impact of the mendicant orders on church architecture of the thirteenth- and fourteenth centuries.
What would we expect it to be today : The USD inflation rate is 1.6%. The Mexican inflation rate is 1.6%. If the spot rate one year ago was $0.058 per peso, what would we expect it to be today
What would you do with it now : what would you do with it now? Where would you put it or invest it? You don't have to answer all these questions, but you have to answer some of them

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd