Question
I need help understanding these homework problems from my Econo class Q1. You can buy as many Mariner's tickets as you like at a price
I need help understanding these homework problems from my Econo class
Q1. You can buy as many Mariner's tickets as you like at a price of $11 each. You know that you can sell them according to the following table. How many tickets do you buy
Table below
Number of tickets Selling Price
0 0
1 16
2 30
3 42
4 52
5 60
6 66
7 70
8 72
Q2. You can hire as many workers as you like at a wage of $11 each. You know that they will produce units that generate an income of $2 each. How many workers do you hire?
Number of workers Numbers of units produced Revenue
0 0 $ 0
1 8 $16
2 15 $ 30
3 21 $ 42
4 26 $ 52
5 30 $ 60
6 33 $ 66
7 35 $70
8 36 $ 72
Q3. The demand function of a company is Q= 8.5 - 0.05p and the total cost function TC = 100 + 38Q
What is the optimal output Q*? And the optimal price, optimal total revenue, and the total cost?
Q4. Given that a firm's inverse demand function is p= 100-5Q and total cost is given by C = 550 + 10q what is the firm's profit-maximizing level of output?
a. 10
b. 15
c. 9
d. 8
e. 5
Q5. What is the marginal revenue MR equation for a firm with the inverse demand function P = a = bQ?
a. MR = b-Q
b. MR = a- 2bQ
c. MR = a+ 2Q
d. MR = 2Q
e. MR = 2a+ Q
Q.6. The demand function of a company is Q = 8.5 - 0.05P and the total cost function TC = 100 + 38Q What is the optimal output Q*? Trick: inverse demand function
Q7. KopyKat is a firm that specializes in printing business cards, using the latest laser technology. The manager has estimated that weekly demand can be approximated by P = 25 - 0.001Q, The firm's total cost function is C = 2,500 + 13Q + 0.002Q2 (a) What is the firm's profit maximizing output and price?
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