Assume that your business firm is a price taker and that, Ask an Expert

Economics

Assume that your business firm is a price taker and that the company sells widgets at $10 apiece. Your firm is maximizing profits. One of your engineers discovers the presence of a substitute input that enables you to cut your production costs in half. Given that information, answer the following questions: What price will you charge for your widgets following the discovery of the input and its subsequent use in production? Why? Will you decrease output, increase output, or keep output the same? Why?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92202261

Have any Question?Write your Review or question?

Related Questions in Business Economics

Suppose a bond with no expiration date has a face value of

Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $900. a. In the table provided below, calculate and enter either the interest rate that the bond would yi ...

Suppose the annualized yield on a one-year security today

Suppose the annualized yield on a one-year security today is 0.01. The markets expect the annualized yield on a one-year security to be 0.02 one year from today, 0.03 two years from today, and 0.04 three years from today ...

Ads in the boring business magazine are read by 300 lawyers

Ads in the boring business magazine are read by 300 lawyers and 1000 MBAs. Ads in the consumer publication are read by 250 lawyers and 300 MBAs. If Harry has $3000 to spend on advertising... If the price of ads in the bo ...

Consider a french-owned cheese factory located in paris

Consider a French-owned cheese factory located in Paris, France. Are the goods made by the cheese factory part of the U.S. Gross Domestic Product (GDP)? Are these goods included in the U.S. Gross National Product (GNP)? ...

While doing data entry you realize that you have made a big

While doing data entry, you realize that you have made a big mistake. every data value in your mistaken dataset is ten points less than it should have been. The standard deviation of the mistaken dataset was 201.2. You c ...

1 in the united states many agricultural products such as

1. In the United States, many agricultural products (such as corn, wheat, and rice) are subsidized. What are the benefits of subsidizing these products? Instructions: You may select more than one answer. Click the box w ...

There are two firms that produce large commercial airplanes

There are two firms that produce large commercial airplanes, namely, Boeing and Airbus. Boeing and Airbus have different flight control systems, with many pilots preferring one system over the other. The Airbus A380 has ...

Sally purchases hardwood lumber for a custom

Sally purchases hardwood lumber for a custom furniture-building shop. She uses three suppliers, Northern Hardwoods, Mountain Top, and Spring Valley. Lumber is classi ed as either clear or has defects. Sally estimates tha ...

Assume that a perfectly competitive firm has the following

Assume that a perfectly competitive firm has the following revenue and cost functions: TC= 5625 +5Q + 0.01Q^2 AVC=5 + 0.01Q MC=5 + 0.02Q TR=20Q A) What is the level of output that maximizes profits, if any? Compute profi ...

You sell bicycle theft insurance if bicycle owners do not

You sell bicycle theft insurance. If bicycle owners do not know whether they are high- or low-risk consumers, is there an adverse selection problem?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert