insert figures and tables from EXCEL onto this sheet. 1. Consider the total profit function ( = TR - TC = (22 –Q)Q – (10+2Q+Q2 ) a. Create a table that shows Total Revenue, Total Cost and Total Profit, (in your table, let quantity run from 0 to 13 in increments of 1.) Indicate in your table where both total profits and total revenues are maximized . Max total profits highlighted in yellow, max total revenues is in red. |Q
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Constraint: X1 ≥ X2 + X3 = X1 - X2 - X3 ≥ 0 Julia can sell at least twice as many hot dogs as barbecue sandwiches X2/X3 ≥ 2 = X2 ≥2 X3 =X2 - 2 X3 ≥ 0 X1, X2, X3 >= 0 (Non negativity constraint) Objective Function (Maximize Profit): Profit =Sell- Cost Profit function: Z = 0.75 X1 + 1.05 X2 + 1.35 X3 LPP Model: Maximize Z = 0.75 X1 + 1.05 X2 + 1.35 X3 Subject to 24.5 X1 + 16 X2 + 25 X3 ≤ 55296 0.75 X1 + 0.45 X2 + 0.90 X3 ≤ 1500 X1 - X2 - X3 ≥ 0 X2 - 2 X3 ≥ 0
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and its marginal cost is $25, then A) to maximize profit the firm should decrease output. B) to maximize profit the firm should continue to produce the output it is producing. C) to maximize profit the firm should increase output. D) Not enough information is given to say what the firm should do to maximize profit. Figure 1 2. Refer to Figure 1. If the firm's average total cost curve is ATC1, the firm will A) make a profit. B) suffer a loss. C) shut down D) break even
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Ch 14 9. a. If firms are currently incurring losses, price must be less than average total cost. However, because firms in the industry are currently producing output, price must be greater than average variable cost. If firms are maximizing profits, price must be equal to marginal cost. b. The present situation is depicted in Figure 6. The firm is currently producing q1 units of output at a price of P1. Figure 6 c. Figure 6 also shows how the market will adjust in the long run
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Marginal Analysis Task 1 Before a company can know the maximum profit to obtain for their industry, they must review and consider many factors. Some of the concepts that are analyzed when making business product decisions are Marginal revenue, marginal cost, profit-maximizing and total cost. Marginal revenue is the total revenue charged when one more unit of output is produced. When you multiply the unit price by the quantity the company can sell this determines the total revenue earned. When
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selling its products. However profit is when you subtract total cost from total revenue. Thus if marginal cost and marginal revenue are the same they cross each other out. It is is the perfect output level without adding additional costs. If you look at table 7.2., the best output is at products 9 where marginal cost and marginal revenue are $131 which is also the price of one unit sold. The maximum profit of $ 299 is reached. I think as soon as you have total economic profit you should sell. The consumers
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revenue by selling the same quantity of products at different prices to consumers. Third Degree Pricing Discrimination: In order to maximize total profits, the firm must sell in each market until MR1 = MR2 = MC will then involve selling the product at a higher price in the market with the less elastic demand. The firm will maximize its total profit by selling the product in each market until MR1 = MR2 = MC. Fig: Third degree price discrimination Assume the firm
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As;dlkfjlsdjflkjsdlfkj;lsdjfjfjslfjlksdfj * Study Resources * By School * By Subject * By Standardized Tests * By Book * Upload Documents * Tutors * Get Homework Help * About Tutors * Become a Tutor * Flashcards * Find Flashcards * Create Flashcards * About Flashcards * Log-in * Sign Up ------------------------------------------------- 50. there is pressure on the mayor to reduce the fare Home Kaplan
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solved to maximize profit contribution for the nuts already purchased. Max = 1.65R + 2D + 2.25H .15R + .20D + .25H < = 6000 Almonds .25R + .20D + .15H < = 7500 Brazil .25R + .20D + .15H < = 7500 Filbert .10R + .20D + .25H < = 6000 Pecans .25R + .20D + .20H < = 7500 Walnuts R > = 10,000 Regular D > = 3000 Deluxe H > = 5000 Holiday The optimal solution-using Lingo is $61,375. This would be your maximum profit using the objective
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greatly hinder the company’s performance in sensitive markets that require more attention to socially acceptable practices. Lastly, the plant managers are responsible for the budgeted profits since their performance is evaluated based on their plants’ profit. However, they do not possess full control on those profit components. Sales budgets are made by the district sale managers who are less knowledgeable on the logistics of the plant than the plant managers
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