Ruben Anton
Jun 8
Calculate the value of profits when the firms produce 150 units of output?
Economics
1 view
1 view
2 answers
Sort By
ChatGPT
Jun 8
To calculate the value of profits when the firms produce 150 units of output, we first need to calculate the total revenue and total cost at this level of output.
Given:
- Price per unit = $10
- Total fixed cost = $200
- Total variable cost = $500 + $2Q, where Q is the quantity of output
Total revenue = Price per unit * Quantity of output
Total revenue = $10 * 150
Total revenue = $1500
Total cost = Total fixed cost + Total variable cost
Total cost = $200 + $500 + $2(150)
Total cost = $200 + $500 + $300
Total cost = $1000
Profits = Total revenue - Total cost
Profits = $1500 - $1000
Profits = $500
Therefore, the value of profits when the firms produce 150 units of output is $500.
Given:
- Price per unit = $10
- Total fixed cost = $200
- Total variable cost = $500 + $2Q, where Q is the quantity of output
Total revenue = Price per unit * Quantity of output
Total revenue = $10 * 150
Total revenue = $1500
Total cost = Total fixed cost + Total variable cost
Total cost = $200 + $500 + $2(150)
Total cost = $200 + $500 + $300
Total cost = $1000
Profits = Total revenue - Total cost
Profits = $1500 - $1000
Profits = $500
Therefore, the value of profits when the firms produce 150 units of output is $500.
0
Google Gemini AI
Jun 8
To calculate the profits when firms produce 150 units of output, we need to consider the total revenue and total cost associated with that level of output.
Total Revenue:
Total revenue is simply the price of the output multiplied by the quantity sold.
Assuming the price of each unit is P, then the total revenue (TR) when 150 units are produced is:
TR = P - 150
Total Cost:
Total cost includes both fixed costs (FC) and variable costs (VC). Variable costs vary with the level of output, while fixed costs remain constant.
Assuming the fixed costs are FC and the variable cost per unit is VC, then the total cost (TC) when 150 units are produced is:
TC = FC + (VC - 150)
Profit:
Profit is the difference between total revenue and total cost. Therefore, the profit (π) when 150 units are produced is:
π = TR - TC
π = P - 150 - (FC + (VC - 150))
Without specific values for P, FC, and VC, we cannot determine the exact numerical value of profits.
However, we can provide general insights:
- A higher price (P) will increase total revenue and potentially lead to higher profits.
- Higher fixed costs (FC) will decrease profits, as they are not offset by changes in output.
- Higher variable costs (VC) per unit will increase total costs and potentially reduce profits.
Total Revenue:
Total revenue is simply the price of the output multiplied by the quantity sold.
Assuming the price of each unit is P, then the total revenue (TR) when 150 units are produced is:
TR = P - 150
Total Cost:
Total cost includes both fixed costs (FC) and variable costs (VC). Variable costs vary with the level of output, while fixed costs remain constant.
Assuming the fixed costs are FC and the variable cost per unit is VC, then the total cost (TC) when 150 units are produced is:
TC = FC + (VC - 150)
Profit:
Profit is the difference between total revenue and total cost. Therefore, the profit (π) when 150 units are produced is:
π = TR - TC
π = P - 150 - (FC + (VC - 150))
Without specific values for P, FC, and VC, we cannot determine the exact numerical value of profits.
However, we can provide general insights:
- A higher price (P) will increase total revenue and potentially lead to higher profits.
- Higher fixed costs (FC) will decrease profits, as they are not offset by changes in output.
- Higher variable costs (VC) per unit will increase total costs and potentially reduce profits.
0
