Explore BrainMass
Share

Explore BrainMass

    The Zinger Company: Total Cost, Marginal Revenue and Price

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Zinger Company makes and sells a sewing machine line. manufactures and sells a line of sewing machines. Demand (Q) is represented by the equation below:

    Q = 400 - .5P

    P = price.

    The total cost of making Q units/period are represented by:

    TC = 20,000 + 50Q + 3Q2.

    What is the expression for total profits in terms of Q?

    a. 20,000 - 750Q + 5Q2
    b. -20,000 + 750Q - 5Q2
    c. 800Q - 2Q2
    d. 400Q - .5PQ

    What is the marginal revenue function for Zinger Company?

    a. 2Q2 - 800
    b. 400 - 2Q2
    c. 800 - 2Q
    d. 800 - 4Q

    What price will be charged?

    a. $650/unit
    b. $65/unit
    c. $6500/unit
    d. $6.50/unit

    © BrainMass Inc. brainmass.com October 9, 2019, 6:06 pm ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/the-zinger-company-total-cost-marginal-revenue-and-price-78519

    Solution Preview

    1) Q = 400 - 0.5P, rearranging this equation in terms of Q we get

    P = 800 - 2Q

    Total revenue TR = P*Q
    = 800Q - 2Q2

    Total Profit = TR - TC
    TC = 20,000 + 50Q + 3Q2

    Total profit = 800Q - 2Q2 - 20000 - 50Q - 3Q2
    = -20000 + 750Q - 5Q2

    The answer is b.

    2) Q = ...

    Solution Summary

    This solution provides calculations for total profits, marginal revenue function, and the price that will be charged. It contains simple calculations step-by-step.

    $2.19