The manufacturer of smart printers is trying to decide what price to set for its product. The demand and cost function are assumed to be as follows: P = 80 -2Q TC= 160 +50Q-1.5Q ² What price should it charge if it wants to maximize its revenue in the short run? What is the optimal quantity for the printer under this price?
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The manufacturer of smart printers is trying to decide what price to set for its product. The
demand and cost function are assumed to be as follows:
P = 80 -2Q
TC= 160 +50Q-1.5Q ²
What price should it charge if it wants to maximize its revenue in the short run?
What is the optimal quantity for the printer under this price?
No handwriting. Please. Type
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- A company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25= 2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the three-halves (3/2) power of its velocity; specifically, Co kny3/2, where n is the trip length in miles, k is a constant of proportionality, and vis velocity in miles per hour. It is known that at 400 miles per hour, the average cost of operation is $300 per mile. The company that owns the aircraft wants to minimize the cost of operation, but that cost must be balanced against the cost of the passengers' time (CC), which has been set at $300,000 per hour. At what velocity should the trip be planned to minimize the total cost, which is the sum of the cost of operating the airplane and the cost of passengers' time?A trailer manufactor has multiple products designed to be towed by a pickup (Ford F-150, Toyota Tacoma, etc). The production of one of their products - the XL7 5x10 trailer - referred to as XL7510 here, has a fixed 9 cost of $62,308 and a variable cost per unit of XL7510 equal to 202 + - dollars, where is the total 10 number of XL7510s produced. Suppose further that the selling price of this product is 1118 The x-values of the break-even points are The maximum revenue is Form the profit function: P(x) = = The maximum profit is The price that will maximize profit is 1 - dollars per unit of XL7510. 10 dollars (round to the nearest cent) dollars (round to the nearest cent)
- If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15 −x 125, its production cost per unit is US$5.00 and its fixed cost are the same as for company A . (i) Derive the total revenue function, R(x) for company A. (ii) Derive the total cost function, C(x) for company A. (iii) Derive the profit function, Π(x) for company A. (iv) Using a spreadsheet, create a table for showing x, R(x)?, C(x) for company A in the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450.(v) Graph the functions from (d) above on the same axes. (vi) From your graph, determine the break-even level of output for company A. (vii) Derive the total revenue function, R(x) for company B. (viii) Derive the profit…A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $84309 per month. The variable cost per thousand board feet is $220.0 for demand 2176 units. The price charged will be determined by P-$739-0.07D per 1000 board feet. For this situation, calculate the profit for the mentioned scenario. Select one: a. 1045034.93 O b. 713586.68 C. 3498584082.68 d. 1213500.68show solution An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000+20.2D +0.0001D2. The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly profit attainable? and Over what range of production is profit possible? Express answers in whole numbers and write the numerical values only.
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- A drywall company in Alberta manufactures dry-wall panels for modular construction companies. Variable costs are $20 per unit and fixed costs are $10,875. the price-demand relationship for the panels is: P = -0.25D + 250 where P is the unit sales price of the drywall panels and D is the annual demand. Knowing that Revenue = Demand X Price Profit = Revenue – Total Cost What profit would the company obtain by maximizing its total revenue if the total -0.25x^2+$250x? Select one: a. $550 b. $650 c. None d. $500A firm hasi nitial value V and has an investment opportunity costing 400 that will yield it an endpoint value of V +500 but it has to issue new shares to raise the required 400. Initially its owners own 10 shares that are currently selling at a market price of 80 per share. Note that this price may not necessarily reflect the true value per share– only the firm itself knows this. If it is indifferent between issuing and not issuing at the market price of 80, what is the initial true value of the firm V?15 x+1160 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 16 Suppose a company has fixed costs of $4000 and variable costs per unit of 1. 1300 x dollars per unit. 16 (a) Find the break-even points. (Enter your answers as a comma-separated list.) (b) Find the maximum revenue. $. (c) Form the profit function P(x) from the cost and revenue functions. P(x) = %3D Find the maximum profit. $4 (d) What price will maximize the profit? (Round your answer to the nearest cent.) %$4 Need Help? Read It Watch It