(1) Download the attached MS Word file. The file has a chart showing the Average Cost (AC) of cell phones as a function of the quantity (Q) of Cell Phones sold. The mathematical function can be written as:

AC = F(Q) .

Using the chart, what is the lowest price that the manufacturer should charge so as not to lose money on the phones?

At what quantity of Output does the manufacturer achieve the lowest Average Cost of manufacturing the cell phone?

If Cell Phones are selling for a flat $325 per phone and the company manufactures and sells 80 cell phones, how much will be the profit or loss of the company?

You must show your work to receive any credit for the last question.

(2) If the Supply Function for a product is Qs= Qs(P), where Qsis the quantity Supplied and P is the Price of the good.

If Qs(P) = 13,000 + 2,000P, Evaluate Qs(6), Qs(10) and Qs(5).

If Qs(P) = 15,000, what is P?; If Qs(P) = 24,000, what is P?

(3) If the Demand Function Qdof the same product in #2 is Qd (P) = 28,000 - 1000P.

Evaluate Qd(7), Qd(9);

If Qd= 15,000, what is P?

(4) Market Equilibrium occurs at the Price (P) where the Quantity of Goods Supplied (Qs) is equal to the Quantity of Goods Demanded ( Qd) and hence 28,000 - 1000P = 13,000 + 2,000P . Using this equalization, please solve for P to find the equilibrium price. At this equilibrium price, what is the equilibrium quantity?