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# Solve Economics Questions: Quantity Produced by Woodard to Maximize the Profit (Math Problem Sample)

Instructions:

Solve the economics problems

source..Content:

Name

Course

Instructor

* Marginal cost curve

Marginal cost curve= dTC /dQ

= -1000+200Q

* Woodardâ€™s marginal revenue function

Marginal revenue function=dTR/ dQ

Total revenue=P*Q

TR= 30000*Q=30000Q

* quantity produced by Woodard to maximize the profit

Profit=TR-TC

TR=30000Q

TC=500,000 -1,000Q + 100Q2

Ï€=30000Q-(500,000 -1,000Q + 100Q2)

Ï€=31000Q-500000-100Q2

d Ï€/dQ= 31000-200Q

200Q=31000

Quantity produced by Woodard=155

Profit=31000(155)-50000-100(1552) =$2,352,500

* If Woodard Inc. chooses the profit maximizing level of production for a monopolist, output they will they produce.

The monopolist's profit-maximizing level of output is found by equating its marginal revenue with its marginal cost,

MR=MC

TR= (40,000 - $20.50Q) Q

40000Q-20.50Q2

MR=40000-41Q

MC=-1000+200Q

40000-41Q=-1000+200Q

41000=241Q

Q=170

* Given the output calculated in part d, the price will they be able to charge as a monopolist

p=40,000 - $20.50Q=40,000-20.50(170)

Price=36515

* Given that the price was $30,000 before the other firm went out of business, and assuming that there was no unmet demand at this price, how much total production was occurring in the market? Now that there is only one firm, how much has consumption decreased?

TOTAL market demand curve was P = 40,000 - $20.50Q

Price$-30000

30000=40000-20.50Q

10000=20.50Q

Q=488

The total production was=488 units

Current production=170 units

Decrease in consumption=488-170=318 units

* What I can say about the relative costs of the firm that went out of business compared to Woodard Inc.

What I can say about the large firm that went out of business is that the firm was operating at the point where the marginal costs were more than the marginal revenue. This means that the firm was not in a position ...

Course

Instructor

* Marginal cost curve

Marginal cost curve= dTC /dQ

= -1000+200Q

* Woodardâ€™s marginal revenue function

Marginal revenue function=dTR/ dQ

Total revenue=P*Q

TR= 30000*Q=30000Q

* quantity produced by Woodard to maximize the profit

Profit=TR-TC

TR=30000Q

TC=500,000 -1,000Q + 100Q2

Ï€=30000Q-(500,000 -1,000Q + 100Q2)

Ï€=31000Q-500000-100Q2

d Ï€/dQ= 31000-200Q

200Q=31000

Quantity produced by Woodard=155

Profit=31000(155)-50000-100(1552) =$2,352,500

* If Woodard Inc. chooses the profit maximizing level of production for a monopolist, output they will they produce.

The monopolist's profit-maximizing level of output is found by equating its marginal revenue with its marginal cost,

MR=MC

TR= (40,000 - $20.50Q) Q

40000Q-20.50Q2

MR=40000-41Q

MC=-1000+200Q

40000-41Q=-1000+200Q

41000=241Q

Q=170

* Given the output calculated in part d, the price will they be able to charge as a monopolist

p=40,000 - $20.50Q=40,000-20.50(170)

Price=36515

* Given that the price was $30,000 before the other firm went out of business, and assuming that there was no unmet demand at this price, how much total production was occurring in the market? Now that there is only one firm, how much has consumption decreased?

TOTAL market demand curve was P = 40,000 - $20.50Q

Price$-30000

30000=40000-20.50Q

10000=20.50Q

Q=488

The total production was=488 units

Current production=170 units

Decrease in consumption=488-170=318 units

* What I can say about the relative costs of the firm that went out of business compared to Woodard Inc.

What I can say about the large firm that went out of business is that the firm was operating at the point where the marginal costs were more than the marginal revenue. This means that the firm was not in a position ...

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