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Definition and calculation of demand, average cost with graphical explanation.

Define output Q, as the number of pages (Copies) printed for a particular job. Suppose that a firm has access to two printers: 1. The Indigo inject digital printer, and 2 a traditional offset printing press, such as those produced by Heidelberger Druckmachien. For this problem, ignore the purchase or retail price of two machines. Do not attempt to research cost figures beyond what is given in the article. This is not expected.

1.Suppose that the cost of craeting/setting up printing plates is $C. Suppose that the original cost per copy of offset printing is $b. Elucidate the average price curves for each printer?

2.Assume that Mr. Joshi's cost assumptions are valid. On the same graph and under the assumptions of part a, draw the average cost curve for the Indigo printer. In addition , include the average cost curve for a tradition offset printing press. Verbally describe the shapes of each curve and label that intreprets. State all your assumption.

3.Repeat part b, assuming that gatner Researcher\'s assumptions are valid.

4.Use your graphs to describe why Robert Ryan, president of Graphics color, rejected the H-P Indigo in favor of the traditional aprinting presses, such as the Heidelberg offset printing machines.

5.Besides per page printing cost, state an advantage of the intigo printer for jobs in the range of 1200 or more copies.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M922609

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