Drive an expression for the marginal profit

Assignment Help Econometrics
Reference no: EM13209238

Suppose a firm assesses its profit function as:

X=profit
X= -10-48Q+15Q^2-Q^3

a.) Compute the firm's profit for the output levels of (Q=2, 8, 14)

b.) Drive an expression for the marginal profit.

c.) Compute marginal profit at Q=2, 8, 14.

d.) Confirm that profit is maximized at Q=8, and not Q=2

Reference no: EM13209238

Questions Cloud

Predict the total revenue from the years corn crop : Last year's crop was 100 million bushels, and the price was $5 per bushel. This year's weather was favorable throughout the country, and this year's crop will be 110 million bushels, or 10 percent larger than last year's. The price elasticity of d..
Explain encoding a metabolic pathway enzyme : Scientists can use mutants to study metabolic pathways. These organisms have a mutation in a gene encoding a metabolic pathway enzyme that results in the inactivation of that enzyme
True regarding pluto''s moon : Which of the following is true regarding Pluto's moon?
What is effective annual interest rate per year : The home you are buying cost $120,000, and you have saved $12,000 to meet the requirement for a 10% down payment. The lender charges "points" of 2% of the loan value as a loan origination and processing fee. The is fee is added to the initial bala..
Drive an expression for the marginal profit : Suppose a firm assesses its profit function as: X=profit X= -10-48Q+15Q^2-Q^3 a.) Compute the firm's profit for the output levels of (Q=2, 8, 14) b.) Drive an expression for the marginal profit. c.) Compute marginal profit at Q=2, 8, 14.
Universal human rights : Are violations of human rights excusable in time of war? In the aftermath of serious terrorist attacks such as those of September 11, 2001?
Determine the demand curve in a market in a market : The ABC marketing consulting firm found that a particular brand of portable stereo has the following demand curve for a certain region: Q=10,000-200P+0.03Pop+0.6I+0.2A Where Q is the quantity per month, P is price($), Pop is population
Strenghts of cognitive behavioral therapy : Are there limitations and strenghts of Cognitive Behavioral Therapy?
Epic of gilgamesh : In the Epic of Gilgamesh, what happened to the plant of rejuvenation given to Gilgamesh by Utanapishtim - African people from the south of Egypt, who ruled during the Twenty-fifth Dynasty and are noted for bestowing great wealth and authority upon ..

Reviews

Write a Review

Econometrics Questions & Answers

  Find when planned aggregate expenditure is less

The table below illustrates values for consumption spending, saving, and planned investment in a closed, private economy. Aggregate Output Consumption Saving Planned Investment Planned Aggregate Unplanned Inventory Change Expenditure (GDP = Y) (C) ..

  How to differentiate among the various brands of widgets

Suppose Springfield's economy moves into a recession and Y falls to $9 and rising unemployment allows widget makers to reduce wages to $18 per hour. What happens to the supply and demand curves.

  What are the steady state solutions for wages growth

Imagine an economy with a standard Cobb-Douglas production function, population growth of 2%, 1% total productivity growth, a savings ratio of 10% and a profit share of 20%. Assume that machines depreciate by 5% per annum.

  Show importance of small differences in the rate of growth

Consider the case of two countries that start with equal levels of GDP. The growth rate of the first country is 3% while the growth rate of the second country is 4%. After 25 years, the level of GDP in the second country is more than 25% larger.

  What would a 1,500,000-pound-per-year plant cost now

what would a 1,500,000-pound-per-year plant cost now Suppose that the construction cost index has increased an average rate of 12 percent per year for the past eight years and that the cost-capacity factor (x) to reflect the economy of scale is 0...

  How much interest is accrued annually

Mike salary will stay at $60,000 per year until he retires. He currently has $82,345 in his retirement fund, which earns 7% annually. He is now 43, and he expects to live until he is 81(he found a website that predicted his life span based on his c..

  Determine the marginal propensity to consumed

Suppose that real GDP is $1,500 and potential GDP is $1,200, while the marginal propensity to consume is 0.8. If the government is going to engage in government spending and change taxes. If the government increases taxes by $20, how much will it ..

  What would have been the average growth rate

What term would economists use to describe what happened in year 3  Expansion OR Recession If the growth rate in year 3 had been a positive 5 percent rather than a negative 2 percent, what would have been the average growth rate

  Define negative relationshp between gross domestic product

Compute the discount factor 1/(1+r)^t for r=1, 5, or 10 perent interest rates and t=30 and 50 years. remember that 1 percent is .01. based on your computation, is teh choice of discount factor important for deciding whether to do somehtinga bout..

  How interest rate remains constant over the period of time

Determine the current amount of money that must be invested at 12% nominal interest, compounded monthly, to provide an annuity $10,000 (per year) for 6 years, starting 12 years from now. The interest rate remains constant over the entire period of..

  Regression for predicting a future value

We have three variables, Information is 2000-2005. I use OLS to Determine the model and get a standard result.

  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 ..

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