Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: The costs below are for one of many, identical firms in a competitive market.

Output

Total

Total

 

Fixed

Variable

 

Cost

Cost

0

50

0

1

50

50

2

50

78

3

50

98

4

50

112

5

50

130

6

50

150

7

50

175

8

50

204

9

50

242

10

50

300

11

50

385

[A]   At what level of output is the 'shut down' point?

[B]   At what level of output would the firms be profit maximizing if the market determined price were USD 25 per unit?

[C]   Would the firms enjoy an economic profit or suffer an economic loss at the profit maximizing level of output for a price of $25 per unit? If so, what is the size [in dollars] of the profit or loss?

[D]    Given the result in part c. above, describe the process that would occur in this market to bring it to a stable, long-run position.

[E]    Would the firms enjoy an economic profit or suffer an economic loss at the profit maximizing level of output for a price of $38 per unit? If so, what is the size [in dollars] of the profit or loss?

[F]   Compute Average Fixed Cost, Average Variable Cost, Average Total Cost, and Marginal Cost.

[G]   Plot Average Fixed Cost, Average Variable Cost, Average Total Cost, and Marginal Cost.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916528

Have any Question? 


Related Questions in Basic Finance

Explain both interest rate swaps and currency swaps which

Explain both interest rate swaps and currency swaps. Which instrument has a greater credit risk: an interest rate swap or a currency swap? How can multinational companies utilize a currency swap to reduce borrowing costs ...

1q norris co has developed an improved version of its most

1Q. Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 million and will return an additional $13.5 million for 5 years in net cash flows. The fi ...

1 what is the significance of the passive activity loss

1. What is the significance of the passive activity loss limitation (PAL) rules for real estate investors? 2. What factors affect a property's projected NOI? 3. ARGUS. Refer to the Monument Office Building example. Suppo ...

Suppose that all capital gains are taxed at a 20 rate and

Suppose that all capital gains are taxed at a 20% rate, and that the dividend tax rate is 40%. ABC Corp is currently trading for $25, and is about to pay a $3 special dividend. a. What is ABC Corp's share price just afte ...

1 what is commodity money how does it differ from fiat

1. What is commodity money? How does it differ from fiat money? 2. Suppose that you live in a simple farm economy where milk is accepted as the primary form of money. Discuss the difficulties with using milk as money in ...

Answer the following questions as they relate to implied

Answer the following questions as they relate to implied volatilities. a. Can implied volatilities be expected to vary for options on the same stock with the same exercise prices but different expirations? b. Can implied ...

1 what is meant by value-added services why are these

1. What is meant by value-added services? Why are these services considered essential in a customer success program? 2. How could a company use the four-stage process of cost-effectiveness, market access, market extensio ...

King manufacturing turns its inventory 91 times each year

King Manufacturing turns its inventory 9.1 times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm's annual sales are $72 million, its cost of goods sold repre ...

Imagine that you are a participant in a research study for

Imagine that you are a participant in a research study. For each of the following scenarios, describe how you would probably react, and explain how your reactivity would influence your responses. a. A researcher tells yo ...

Consider rolling a fair 6-faced die twice let a be the

Consider rolling a fair 6-faced die twice. Let A be the event that the sum of the two rolls is atmost 6, and B be the event that the first one is an even number. (a) What is the probability that the sum of the two rolls ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen