The Demand Function for a product can be as Q=400-2P. We would have a fixed cost for this product as 200 and our variable costs are 0.5 per unit. Please let me know the equation for the profit. When is profit maximized? What is the maximum profit?

Solution Preview

First you need to find the inverse demand function. You are given the demand function Q = 400-2P. We can convert this like this:
2P = 400 - Q
P = 200 -Q/2
Now you have the price as a function of the ...

Solution Summary

Profit maximization given demand function and costs of production.

Is profitmaximization alone an appropriate goal for the firm? Why or why not? Who in a corporation is responsible for protecting and managing stockholders interest? How is profitmaximization different from maximizing shareholder wealth?

ProfitMaximizationProfitMaximization
1) Fill in the missing data for price (P), total revenue (TR), Marginal Revenue (MR),
total cost (TC), Marginal Costs (MC), profit (ð), and marginal profit (Mð)
in the following table (all units except Q are dollar

Question: A monopolist faces a marginal revenue function of MR = 20 - Q. The monopolist's marginal cost is $15 at all levels of output. How many units of output should the firm produce in order to maximize profits?

It costs Dan's company C(x) = x^2 - 3x + 64 dollars to produce x items. The selling price (p) when x hundred units are produced is p(x) = (44 - x)/4. Determine the level of production (# of items produced) that maximizes profit.

Market Equilibrium and ProfitMaximization under Perfect Competition
The supply and demand equations for a hypothetical perfectly competitive market are given by
QS = -100 + 3P and QD = 500 - 2P.
a) Find the market equilibrium price algebraically.
b) In Excel, use the above equilibrium price and the cost data fro

The cost to produce each of two products is dependent on the quanity in order to maximize profits.
product a sells for $10,000 a unit and product 2 sells for $12,000 a unit. Fixed cost is $2,000 for each product find the optimal points.
c1=x1+x2(in thousands of dollars)
c2=2x2+x1(in thousands of dollars)

MULTIPLE CHOICE
For a maximization problem, assume that a constraint is binding. If the original amount of a resource is 4 lbs., and the range of feasibility (sensitivity range) for this constraint is from 3 lbs. to 6 lbs., increasing the amount of this resource by 1 lb. will result in the:
a. same product mix, different tota

I hope you ll can help I just don't understand this.
I have attached the problems.
Revenue and ProfitMaximization Under Oligopoly
An oligopolist, the Bramwell Corporation has estimated its demand function and total cost functions to be as follows:
Q = 25 - 0.05P
TC = 700 + 200Q
Answer the following questi