Calculate the level of quantity that maximizes profits

Assignment Help Business Management
Reference no: EM132336468

Question

Given the TR equation TR = 100Q - 10Q^2 and the TC equation TC = 182 + 56Q

a) Calculate the level of quantity that maximizes profits

b) Calculate the profit at that quantity

c) Add 1 to the quantity you found in part a). Show that profit is indeed lower at this quantity.

d) Find the quantity at which the firm maximizes revenue.

e) Calculate the profit at this quantity. Is it higher or lower?

f) Suppose variable costs increase such that the new TC equation is TC = 182 + 60Q. Calculate the new profit maximizing quantity.

g) For many managers, there is a notion that when costs increase, the firm must sell more units to maintain profit levels. In part f), do we find that the profit maximizing level of output increases or decreases? What would happen if we followed the advice of the managers mentioned above and increased our quantity to a level higher than part a) using the Total Cost equation in part f)? Provide an example.

Reference no: EM132336468

Questions Cloud

Issues faced by multinational companies : Biohazards, plant safety, questionable marketing and poor labor standards are just some of the issues faced by multinational companies. Discuss these issues.
Comparative advantage in producing a particular commodity : Any idea what gives a country a comparative advantage in producing a particular commodity? In other words, what is the source of the country's comparative
How much would consumer spending decrease initially : The expiration of the FICA payroll tax cut of January 1, 2013, raised taxes by $110 billion per year.Assume a marginal propensity to save (MPS) of 0.20.
Value of the next best alternative of time : The opportunity cost is the value of the next best alternative of his time - how he would spend his afternoons if he wasn't at the pool.
Calculate the level of quantity that maximizes profits : Given the TR equation TR = 100Q - 10Q^2 and the TC equation TC = 182 + 56Q
Describe a situation where regulation in the healthcare : Describe a situation where regulation in the healthcare system is good for the consumer. Also, describe a situation where it may not be in the consumer's intere
Discuss the legal implications of analysis : FOR10001 Introduction to Forensic Psychology Assignment - Essay, Swinburne University of Technology, Australia. Discuss the legal implications of analysis
Determine the confidence interval : According to the sample results, the average pressure is 235 pounds and the standard deviation is 32 pounds. Determine the 99% confidence interval.
Probability that the average length of a sheet : A sample of 36 metal sheets is randomly selected from a batch. What is the probability that the average length of a sheet is between 29.70 and 30.24 inches long

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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