that can be expressed as TC = 100Q + Q2 + 50. a. Given the above information, what is this monopolist’s profit maximizing price and output if it charges a single price? Answer: MR = 520 – 4Q MC = 100 + 2Q 520 – 4Q = 100 + 2Q Q = 70 units of output P = 520 – 2Q = 520 – 2(70) = $380 per unit of output b. Given the above information, calculate this single price monopolist’s profit. Answer: Profit = TR – TC TR = P*Q = ($380 per unit)(70 units) = $26,600 TC = 100Q + Q2 + 50 = 100(70)
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between marginal revenue and marginal cost, and the importance of these concepts for profit maximization. One approach for profit maximization is by looking at the total revenue (TR) to total cost (TC). This is where the quantity being generated is yielding the greatest difference between the TR and the total TC. Another approach is using marginal revenue (MR) to marginal cost (MC). MR is the increase in revenue that results from the sale of one additional unit of output, and is calculated by the change
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❏ BEP Analysis n = number of units/volume B = Breakeven volume TC = Total cost P = Unit (selling) price FC = Fixed cost VC = Variable cost; TFC = Total Fixed Cost TVC = Variable Cost/Unit Revenue/period = n P TC/period = n VC + FC Profit/Loss = Revenue - TC = n P - (n VC + FC) = n (P - VC) - FC At BEP, Profit = 0 ==> 0 = n (P - VC) - FC or n = FC P - VCChapter 5: Revenue and Cost Analysis 10/19/98 6 ❍ P - VC is called contribution margin (CM), ❖ The difference between selling price
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25=>14.5-7.25=2Q=>7.25=2Q=>Q=3.625 (b) What will Amazon’s projected profit be for this season? P=14.5-Q => P=14.5-3.625=>P=$10.875 TR=P*Q=> TR=$10.875*3.625=$39.422 million TC=ATC*Q=>TC=$5.50*3.625=$19.94 million Therefore Amazon’s profit for this season will be as follows: Π=TR-TC=> Π=$39.422 - $19.94 => Π=$19.94 million (c) Consultant recommendation: Since the company is already maximizing profit, an increase in production and sales would not increase the profit
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Project Report TOPIC: “REMOTE IT Infrastructure Management ” 1. Abstract The recently launched NASSCOM-McKinsey Report 2006 yet again reaffirmed views of the global gurus that Remote Infrastructure Management (RIM) Services are all set to become the next star of the Indian IT Industry. It clearly states that “going forward, the more traditional IT outsourcing service lines such as hardware and software maintenance, network administration and help desk services will account for 45 per cent
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16 20 1 24 FC 36 36 36 36 36 36 36 TC 36 40 44 48 52 AVC --4 AFC --36 2 9 ATC MC ----40 4 11 5.33 4.33 4 4 1.33 0.8 1.33 2 4 1.33 1.33 56 1.43 4 3 2.57 2.4 60 1.6 The following formulas can be used to calculate the necessary values for the chart. • • • • • • • MPL (Marginal Product of Labor) = (change in Q)/(change in L) In this case, labor is the only input that varies and we assume a constant wage. VC (Variable Cost) = L*wage FC (Fixed Cost) = TC – VC AVC (Average Variable Cost) = VC/Q
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notation V and R designed the Voigt and Reuss approximations. The value of zero means that the crystal is isotropic, while the value of unity represents the maximum anisotropy. From the result reported in Table 4, we can be observed that all Mg3TH7 (T=Mn, Tc and Re) exhibited small anisotropy both in compression and shear. The Debye temperature (TDebye) plays an important role for understanding of thermodynamic properties of solid. By using the average sound velocity according to the methods in Ref. [47]
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Basic of Engine Operating Characteristics 2103471 Internal Combustion Engine Background on IC Engines • “An internal combustion is defined as a heat engine in which the chemical energy of the fuel is released inside the engine and converted directly into mechanical work on a rotating output shaft, as opposed to an external combustion engine in which a separate combustor is used to burn the fuel.” Background on IC Engines Internal combustion engines are so called because the heat required
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Will Bury Business Proposal Econ/561 March 2, 2011 To: Whom it May Concern From: Will Bury Date: March 2, 2011 I have gathered you here today to discuss the future of my company Will Bury’s Digital Books. My company’s structure is monopolistic competition, which mean as demand increases, prices decrease. To make any profits, I have to make sure that my product is in demand (Halmos, 1995). After that, it is in my best interest to determine ways to increase revenue, minimize cost, profit
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EOCQ 15) Cent Investments Ltd is considering a project that will result in initial cash savings of $5 million at the end of the first year, and these savings will grow at the rate of 3.2% per year indefinitely. The firm has a debt/equity ratio of 4.0, a cost of equity of 12%, and an after-tax cost of debt of 6%. The cost-saving proposal is related to the firm’s core business, so it is viewed as having the same risks as the overall firm. Under what circumstances should the firm take on the project
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