Develop the equations for total cost and total revenue

Assignment Help Econometrics
Reference no: EM13206620

A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Use the data (and helpful hints) that follow to work out answers.

- Total cost = Fixed cost + Variable Cost
- Revenue = Demand X Price
- Profit = Revenue - Total Cost

Set up your graph with dollars on the y axis (between 0 and $70,000) and, on the x axis, demand D: (units produced or sold), between 0 and 1000 units.

a) Develop the equations for total cost and total revenue.
b) Find the breakeven quantity (in terms of profit and loss) for the product.
c) Find the profit that the company would obtain by maximizing it's total revenue and neatly graph the solutions

Reference no: EM13206620

Questions Cloud

Identify the shape of each face : Identify the shape of each face. Tell the number of congruent faces. Refers to standards 2.G.1 and 2.G.2 Use the sets below to answer the question. What rule did Ray use to sort the shapes above into two groups?
Compute the elasticity coefficients for price : Amalgamated Popcorn, Inc. is a fairly small firm selling bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, you have observed that your daily sales tend to follow a pattern that can be stated as: QP = 500 - 100PP + 1.2..
Role of an investigator conducting behavioral profiling : Identifies and describes specific components you would use in building a criminal profile for use with a type of or series of crimes for presenting in court.
State what is the resolution between peaks a and b : an LC analysis with a 30.0cm column yields the tabulated data. what is the resolution between peaks A and B?
Develop the equations for total cost and total revenue : A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual dema..
What did you most want to give to the world : What insights do these answers give me about the direction I would like my life to take and What situation in the world, in your nation, or in your community do you notice yourself complaining about the most? "Somebody really ought to do something ..
What are the failings of the model that led to poor results : How are they interpreted in terms of the original problem? Are the results reasonable? If not, what are the failings of the model that led to poor results?
What spends a dollar buying a first cup of coffee : In addition suppose that coffee costs $1 per cup, doughnuts cost $1 each and omar has a budget that he can spend only on doughnuts, coffee or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee.
What is the quantity : Solve problem of the Rhind Mathematical Papyrus by the method of false position : A quantity and its 2 are added together and from the sum 1 of the sum is subtracted 3 3 and 10 remains. What is the quantity?

Reviews

Write a Review

Econometrics Questions & Answers

  What are the equations for the consumption

Y C I G X AE S MPC MPS S IM MPI 100 120 20 30 10 180 -20 If government spending increases by $15, what is the new equilibrium level of real GDP 2. What are the equations for the consumption, net exports, and aggregate expenditures ..

  Determine what is the npv of this investment

A machine that costs $1,500,000 has a 3-year life. It will generate after tax annual cash flows of $700,000 at the end of each year. It will be salvaged for $200,000 at the end of year 3. If your required rate of return for the project is 13%, what i..

  What is the probability that the number of voters in sample

Candidate A is running for president of the student government at a large university. The proportion of voters who favor the candidate is 0.8. A simple random sample of 100 voters is taken. a. What are the expected value, standard deviation, and sh..

  How much will pauls mother will increase his lunch allowance

If twinkies cost $0.10 each and soda costs $0.25 per cup, how should paul spend the $1 his mother gives him to maximize his utility B) If the school tries to discourage Twinkie consumption by increasing the price to $0.40, by how much will Paul's ..

  Determine denniss monthly budget line

Dennis is only interested in two things, eating food and playing the online multiplayer game Globe of Gratuitous Violence (GoGV) - a close competitor to world of warcraft. Dennis's utility is given by the function U(qf,qg) = 0.25ln(qf) + 0.75ln(qg..

  Find the level of savings for income equal to what

1. Assume that C = 40 + .5Y. a. Find the level of consumer spending and the level of savings for income equal to what c. What will be the equilibrium level of income when planned investment expenditure is equal to 60

  Which country has comparative advantage in producing wheat

the following information concerning production of wheat and cloth in the United States and in the United Kingdom: Labor Hours Required to Produce One Unit United Kingdom United States Wheat 2 ..

  What is the probability of tossing a dice

When a pair of dice are tossed, the results may be any whole number from 2 through 12. In the game of craps one can win by tossing either a 7 or 11 on the first roll. What is the probability of doing this.

  Analyze the current status on the foreign exchange rate

Analyze the current status on foreign exchange rate, producer price index including descriptions of current status and graphs with APA guidelines.

  What price and output will occur under pure monopoly

Assume the industry demand for a product is P = 1,000 - 20Q. Assume that the marginal cost of product is $10 per unit. A. What price and output will occur under pure competition What price and output will occur under pure monopoly

  Determine the rate at which a nations income per person

according to solows model of economics, what determines the rate at which a nations income per person grows based on that model, what sort of public poicies would be able to increase the growth rate in income per person

  What is the maximum loan that the bank a can make

Yesterday bank A had no excess reserves. Today it received a new deposit of $5000. a) If the bank maintains a reserve requirement of 2 percent, what is the maximum loan that the bank A can make

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