I. A manufacturer sells a product for $65 per unit. The manufacturer’s fixed costs are $7000 per week, and variable costs are $30 per unit. Let X represent the amount of the good produced and sold each week.

Question

I.   A manufacturer sells a product for $65 per unit.  The manufacturer’s fixed costs are $7000 per week, and variable costs are $30 per unit.  Let X represent the amount of the good produced and sold each week.

anonymous · Answer

a.) Form the manufacturer’s total revenue function, R(x) and total cost function, C(x). Assume both are linear.

 

b.) Form the manufacturer’s total profit function π (x).  Then locate the firm’s weekly break even output level.   (note that the greek letter capital  pi , π, is for profit)
 




c.) Find marginal cost, marginal revenue, and marginal profit.   How do these relate to the corresponding total revenue, total cost and total profit functions found in parts a.) and b.)?
 




d.)  Suppose this firm has a weekly production maximum capacity of 800 units.   What quantity should this firm produce in order to achieve maximum profits?    Why?  What is the value of these maximum profits?

anonymous · Answer

@thomaster can you help? pleeease