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

Grind co is considering replacing an existing machine the

Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $153,000 per year for 5 years. Depreciation on the new machine is $124,000 compared with $86,000 on the old mac ...

1 why do researchers care how much variability exists in a

1. Why do researchers care how much variability exists in a set of data? 2. Distinguish between descriptive and inferential statistics. 3. Conceptually, what does the variance tell us about a set of data?

1 explain how the process of counterbalancing attempts to

1. Explain how the process of counterbalancing attempts to keep order effects from becoming a confounding variable in a within-subjects design. 2. Explain how statistical regression and instrumentation threaten the inter ...

Convert generic headings to talking headingsfrom a

Convert generic headings to talking headings. From a preliminary outline for a report, you have the following major and minor generic headings. Convert these to talking headings that you'll include in your final report. ...

Firm x has a proposed project that will generate sales of

Firm X has a proposed project that will generate sales of 2,750 units at a selling price of $36 each. The fixed costs are $18,000 and the variable costs per unit are $21. The project requires $36,000 of fixed assets that ...

There are 1000 students in a high school among the 1000

There are 1000 students in a high school. Among the 1000 students, 150 students take AP Statistics, and 300 students take AP French. 100 students take both AP courses. Let S be the event that a randomly selected student ...

Using the following information calculate the total

Using the following information, calculate the total salesforce size necessary by using each of the following approaches: breakdown, workload, and incremental. Be sure to show your work. Also, explain the advantages and ...

In early 2009 an article in the new york times

In early 2009, an article in the New York Times observed: "Without a cure for the problem of bad assets, the credit crisis that is dragging down the economy will linger, as banks cannot resume the ample lending needed to ...

Apple inc is currently equity-financed only with a beta of

Apple Inc. is currently equity-financed only with a beta of 1.1. Its tax rate is 35%. Risk-free rate and market risk premium are both 7%. Calculate the cost of equity if Apple Inc's capital structure consists of 30% debt ...

1 what are some of the key cost trade-offs that the

1. What are some of the key cost trade-offs that the financial manager must focus on when attempting to manage short-term accounts in a manner that minimizes cash? Prepare a graph describing the general nature of these c ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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