P = $130 - $0.000125Q
MR - $130 - 0.00025
Fixed development cost = $600,000
Marginal costs are $63 per unit.

Calculate output, price, total revenue and total profit at the revenue maximizing activity level and then at the profit maximizing level (present each with relevant diagrams).

The solutions uses the data given in the question and calculates output, price, total revenue and total profits. Relevant diagrams are also presented in the response. Step by step calculations have been provided which makes it really easy to follow along. A student downloading this solution can easily understand the concepts and then apply them to similar problems. Overall, an excellent response that provides clear and detailed explanation to the problem being asked.

Please refer attached file for diagram.
The follwing diagram shows the cost structure of a mononpoly firm as well as market demand. Identify on the graph and calculate the following:
a. Profit-maximizing output level
b. Profit-maximizing price
c. TotalRevenue
d. Total Cost
e. Totalprofit or loss.
State the correct

Define Q to be the level of output produced and sold, and assume that the firm's cost function is given by the relationship:
TC = 20 + 5Q + Q^2 (Q is squared)
Furthermore, assume that the demand for the output of the firm is a function of price P given by the relationship:
Q = 25 - P
1. Define totalprofit as the

I would really apriciate it if you could explain the answer in a detailed way with graphs.Thank you.
Firms in pure competition take the market price as given and produce the level of output which will maximize their profits.This quantity can be determined graphically by using either the totalrevenue, total cost approach or

Please help with the following problems. Provide step by step calculations.
A monopolist produces trinkets at $2/unit. The demand for trinkets as a function of unit price p is: D(p) = 100-p.
1) At a unit price of $10, what will the demand be?
2) At a unit price of $10, what will totalrevenue be?
3) At a unit price of $

Restaurant Marketing Services, Inc., offers affinity card marketing and monitoring systems to fine dining establishments nationwide. Fixed costs are $600,000 per year. Sponsoring restaurants are paid $60 for each card sold, and card printing and distribution costs are $3 per card. This means that RMS's marginal costs are $63 per

A Monopolist's DemandandTotal Cost functions are:
P= 1624 -4Q
TC= 22,000 + 24Q -4Q(squared) + 1/3Q (to the third power)
Where Q is output produced and sold
a. At what level of output and sales (Q) and price (P) will TotalProfits be maximized?
b. At What level of output and sales (Q) and price (P) will Total Rev

At a product price of $56, will this firm produce in the short run? Why or why not? If it is preferable to produce, what will be the profit-maximizing or loss minimizing output? Explain. What economic profit or loss will the firm realize per unit of output?
Total Average Average Average

Suppose a competitive firm's cost information is as shown in the table below.
Output Marginal Cost Average Variable Cost Average Total Cost
0
1 $ 8.00 $ 8.00 $ 17.00
2 7.00 7.50 12.00
3