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- Giovanni owns a food truck in Los Angeles. His total cost function is given by C(q) = 8 + q + 2q². He sells Italian paninis at the market price p (in dollars).The market for high-quality caviar is dependent on the weather. If the weather is good, there are many fancy parties and caviar sells for 300 SEK per kg. In bad weather it sells for only 200 SEK per kg. Caviar produced one week will not keep until the next week, i.e. it has to be sold and consumed the same week it is produced. A small caviar producer has a cost function given by C=5q2 - 50q + 1000 where q is the weekly caviar production. Production decisions must be made before the weather (and hence the price of caviar) is known, but it is known that good weather and bad weather each occur with a probability of 0.5. a) How much caviar should the firm produce per week if it wishes to maximise its expected profit? b) Suppose the owner of the firm has a utility function of the form U(π)=√π where π is weekly profits. What is the expected utility associated with the strategy in (a)? c) Suggest a weekly production level that would give the owner higher expected utility than the…Suppose the demand for a certain brand of a product is given by D(p) = + 300, where p is the price in dollars. If the price, in terms of the cost c, is expressed as p(c) = 4c - 36, find the demand function in terms of the cost. D(c) =
- The market for high-quality matsutake mushrooms is dependent on the weather. If the weather is good, one kilogram matsutake mushroom can be sold for $30. In bad weather it sells for only $20 per kilogram. Matsutake mushrooms produced one week will not be kept until the next week, A small matsutake mushrooms producer has a cost function given by C = 0.5q^2 + 5q + 100 where q is weekly matsutake mushrooms production. Production decisions must be made before the weather (and the price of matsutake mushrooms) is known, but it is known that good weather and bad weather each occur with a probability of O.5. How much matsutake mushrooms should this firm produce if it wishes to maximize the expected value of its profits?The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula Cx) - 100 + 40x - 0.08. (a) Find the marginal cost function C(x). Cx) = 40 - 0.16x Use it to determine how fast the cost is going up (in s) at a production level of 100 teddy bears $ 24 per teddy bear Compare this with the exact cost of produong the 101" teddy bear (in ). The cost is increasing at a rate of s 24 per teddy bear. The exact cost of producing the 101" teddy bear is s Thus, there is a diference of (b) Find the average cost function C, and evaluate č100) (in s). C100) -s x per teddy bear What does the answer tell you? per teddy bear. The average cost of producing the first hundred teddy bears is s Eter an tuberThe unit price of a product is given by P(X) = 200 - 0,01X and the total cost function C(x) = 50X + 20.000 How many items should be sold to maximize profit?
- The marginal cost of producing the xth box of DVDs is 7 + C(x): = x² 80,000 and the fixed cost is $100,000. Find the cost function C(x).A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500 per day when producing 15 sinks. The company has a daily demand function of q = 360 − p, where q is the number if laundry sinks demanded and p is te price of a laundry sink. (b) Find a function for the average cost of this company?The daily cost to manufacture generic trinkets for gullible tourists is given by the cost function C(x) = -0.001x2 + 0.7x + 590 dollars, where x is the number of trinkets. (a) Find C'(x). C'(x) = As x increases, the marginal cost does which of the following? increases decreases increases then decreases decreases then increases (b) Find C(x). C(x) = As x increases, the average cost does which of the following? increases decreases increases then decreases decreases then increases (c) Find the following values. C'(100) = C(100) The marginal cost is less than the average cost when x = 100. Submit Answer O O
- The total cost C of making x units of a commodity is given by C = 0.005(x)3 + 0.45(x)2 + 12.75(x). All units made are sold at $36.75 per unit. The profit P is then given by P = 36.75(x) - C. Find the number of units to make to maximize profit.Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml size is q = 4000 − 250p and his total cost function is C(q) = 500 + 0.2q.How many 750ml bottles of dishwashing liquid should TeddyJ produce per month if he wishes to maximize his profits?To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the break-even point b) How many t-shirts needs to be produced and sold in order to make a profit of $500?
