1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
quester [9]
3 years ago
15

For the cost and price functions below, find

Business
1 answer:
murzikaleks [220]3 years ago
8 0

Answer:

a) The number, q, of units that produces maximum profit = 15

b) The price, p, per unit that produces maximum profit = 47 (currency not giben in the question)

c) Maximum Profit = P = 380 (currency not given in the question).

Explanation:

The cost function and price per unit function are given respectively as

C(q) = 70 + 17q

p = 77 - 2q

where q = quantity or number of units

a.) the number, q, of units that produces maximum profit

Total cost = C(q) = 70 + 17q

Revenue = (price per unit) × (Number of units) = p × q = (77 - 2q) × q = (77q - 2q²)

Profits = P(q) = (Revenue) - (Total Cost)

P(q) = (77q - 2q²) - (70 + 17q)

P(q) = -2q² + 60q - 70

To maximize the profits, we just obtain the point where the profit function reaches a Maximum.

At the maximum of a function, (dP/dq) = 0 and (d²P/dq²) < 0

Profit = P(q) = -2q² + 60q - 70

(dP/dq) = -4q + 60

At maximum point,

(dP/dq) = -4q + 60 = 0

q = (60/4) = 15

(d²P/dQ²) = -4 < 0 (hence, showing that the this point corresponds to a maximum point truly)

Hence, the number, q, of units that produces maximum profit = 15.

b.) the price, p, per unit that produces maximum profit

The price per unit is given as

p = 77 - 2q

Maximum profit occurs at q = 15

p = 77 - (2×15) = 47

Hence, the price, p, per unit that produces maximum profit = 47 (currency not given in the question)

c.) the maximum profit, P.

The Profit function is given as

Profit = P(q) = -2q² + 60q - 70

At maximum Profit, q = 15

Maximum Profit = P(15)

= -2(15²) + 60(15) - 70

= 380 (currency not given in the question).

Hope this Helps!!!

You might be interested in
Which one of the following statements is TRUE? a. A shareholder-friendly charter will make it harder for a company to be acquire
mojhsa [17]

Answer:

The answer is C.) A targeted share repurchase is when the company purchases stock from one of the shareholder at a higher price than it offers to other shareholders.

Explanation:

This indicates that shareholders will benefit when the company is acquired because they usually receive a higher price for their shares.

A corporate body consist of a group of persons or board of directors that are chosen to govern the affairs of a corporation or other large institution.

3 0
2 years ago
"The board of directors of Capstone Inc. declared a $0.70 per share cash dividend on its $3 par common stock. On the date of dec
Gennadij [26K]

Answer:

  • Dr Dividends Declared 12,300
  • Cr Dividends Payable 12,300

Explanation:

First we must determine how many shares are outstanding:

23,000 shares issued - 5,000 shares held= 18,000 shares outstanding

Then we multiply shares outstanding times dividends per share:

18,000 shares outstanding x $0.70 per share = $12,300

  • Dr Dividends Declared 12,300
  • Cr Dividends Payable 12,300
5 0
3 years ago
When current government expenditures exceed current tax revenues and the economy is achieving full employment: Group of answer c
user100 [1]

Answer: the full-employment budget has a deficit

Explanation:

When current government expenditures exceed current tax revenues and the economy is achieving full employment, it means that the full-employment budget has a deficit.

This means that the government of that particular economy is spending more than what it generates. This lead to the deficit that has been incurred.

3 0
3 years ago
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets
stich3 [128]

Answer:

The correct answer is $33,880.

Explanation:

According to the scenario, the given data are as follows:

Direct labor = $5.60 per unit

Actual level of Activity = 6,050

So, we can calculate the direct labor in planning budget by using following formula:

Direct labor in planning budget = Actual level of Activity × Direct labor

By putting the value, we get

Direct labor in planning budget = 6,050 × $5.60

= $33,880

Hence, The direct labor in the planning budget for May would be closest to $33,880.

3 0
2 years ago
________ look at each budget as if it were brand new and require managers to justify each of the budgeted items. This process en
larisa [96]
The answer for the blink would be Zero-based budgets.
7 0
2 years ago
Other questions:
  • Bank capital has both benefits and costs for the bank owners. Higher bank capital ________ the likelihood of bankruptcy, but hig
    11·1 answer
  • Which of the following is not a skill required to change discriminatory behavior?
    6·1 answer
  • A machine costing $25,000 to buy and $3000 per year to operate will save mainly labor expenses in packaging over six years. the
    6·1 answer
  • Which of the following is a depository financial institution
    12·1 answer
  • Laramie Labs uses a risk-adjustment when evaluating projects of different risk. Its overall (composite) WACC is 10%, which refle
    14·1 answer
  • The Ashwood Company has a long-term debt ratio of 0.50 and a current ratio of 1.60. Current liabilities are $970, sales are $5,1
    9·1 answer
  • Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Pensacola State Colle
    15·1 answer
  • Crane Lakes Park is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial info
    6·1 answer
  • Students who enjoyed solving a puzzle were rewarded for doing so. Later, they played less with the puzzle than did their counter
    8·1 answer
  • Calico Company has two operating departments: Department A and Department B. Department A occupies 30% of the floor space of the
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!