If the total variable cost is $100 , total fixed cost is $200 at quantity of 10 and price of $15, what would be the profit?
If the total variable cost is $100 , total fixed cost is $200 at quantity of 10 and price of $15, what would be the profit?
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Ball Bearings, Inc., faces costs of production as follows:
Quantity |
Total Fixed Costs |
Total Variable Costs |
(Dollars) |
(Dollars) |
|
0 |
100 |
0 |
1 |
100 |
50 |
2 |
100 |
70 |
3 |
100 |
90 |
4 |
100 |
140 |
5 |
100 |
200 |
6 |
100 |
360 |
Complete the following table by calculating the companyās total cost, marginal cost, average fixed cost, average variable cost, and average total cost at each level of production.
Quantity | Total Cost($) | Marginal Cost($) | Average Fixed Cost($) | Average Variable Cost($) | Average Total Cost($)Ā |
0 | 150 | Ā | Ā | Ā | Ā |
1 | 100 | Ā | Ā | Ā | Ā |
2 | 100 | Ā | Ā | Ā | Ā |
3 | 100 | Ā | Ā | Ā | Ā |
4 | 100 | Ā | Ā | Ā | Ā |
5 | 100 | Ā | Ā | Ā | Ā |
6 | 100 | Ā | Ā | Ā | Ā |
Given following Price and Total Cost functions:
P = 120 - 7Q
TC = 40 + 70Q - 10Q2 + 0.6Q3
Where P = price, and Q is output.
Fill in the table below and answer the questions below the table.
Q |
P |
FC |
TVC |
TC |
TR |
Profit |
0 |
Ā | Ā | Ā | Ā | Ā | Ā |
1 |
Ā | Ā | Ā | Ā | Ā | Ā |
2 |
Ā | Ā | Ā | Ā | Ā | Ā |
3 |
Ā | Ā | Ā | Ā | Ā | Ā |
4 |
Ā | Ā | Ā | Ā | Ā | Ā |
5 |
Ā | Ā | Ā | Ā | Ā | Ā |
6 |
Ā | Ā | Ā | Ā | Ā | Ā |
7 |
Ā | Ā | Ā | Ā | Ā | Ā |
8 |
Ā | Ā | Ā | Ā | Ā | Ā |
9 |
Ā | Ā | Ā | Ā | Ā | Ā |
10 |
Ā | Ā | Ā | Ā | Ā | Ā |
If your company's goal is to maximize profit, answer the following questions below:
What price will you charge for your product?
What quantity will you produce?
And what would be your maximum profit or minimum loss at the price and output you chose?
2. If your company's goal is to maximize total revenue, answer the following questions below:
What price will you charge for your product?
What quantity will you produce?
And what would be your maximum total revenue at the price and output you chose? (3 points)
Question 3
Given a firm with the following cost data, fill in the table below.
Q = OUTPUT TFC = Total Fixed Cost AVC = Average Variable Cost ATC = Average Total Cost TVC = Total Variable Cost MC = Marginal Cost TC = Total Cost
Ā
Q |
FC |
TVC |
TC |
AVC |
ATC |
MC |
0 |
Ā | Ā | Ā |
--- |
--- |
--- |
1 |
Ā | Ā | Ā | Ā | Ā |
10 |
2 |
Ā | Ā | Ā | Ā | Ā | Ā |
3 |
Ā | Ā | Ā |
10 |
Ā |
10 |
4 |
Ā | Ā | Ā | Ā | Ā | Ā |
The price elasticity of demand forhardback is 0.5 and the price elasticity of demand for paperback is2. Suppose the publisher increases the price for hardback by 10%and decreases the price of paperback by 10%. Complete the followingtable. Does price discrimination increase or decrease thepublisherĆ¢ĀĀs profit?
| Price | Quantity | Total Revenue | Total Cost | Profit |
Hardback | $20 | 100 |
|
|
|
Paperback | 20 | 100 |
|
|
|
Total |
| 200 |
|
|
|