Search Results: 'Marginal cost'
Marginal Cost of Production
"Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 +2 q2, where q is the level of output and C is total cost. ... More > (The marginal cost of production is 4q. The fixed cost of production is $200.)
(a) If the price of watches is $100, how many watches should you produce to maximize profit?
(b) What will the profit level be?
(c) At what minimum price will the firm produce a positive output?
Short Run Cost Function
"The short-run cost function of a company is given by the equation TC=200+55q, where TC is the total cost and q is the total quantity of output, both measured in thousands.
(a) What is the... More > company’s fixed
(b) If the company produced 100,000 units of goods, what is its average variable cost?
(c) What is its marginal cost per unit produced?
(d) What is its average fixed cost?
Estimate the Average Cost
"a) At this output level, calculate the average cost and the marginal cost.
b) Draw a diagram showing the current situation of the firm.
c) In addition to the above information, suppose the... More > price of the output is $13/unit, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
d) Suppose the price of the output is $16/unit instead, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
Supply Curve for a Constant-Cost
Calculate the Long run industry supply curve for a constant-cost industry, Marginal cost, Average total cost, output.
Cost Accounting Same Net Income
"a) What is Wilson’s break-even point in cases of widgets for the current year?
b) What selling price per case must Wilson charge to cover the 15% increase in variable production costs... More > (the 15% increase includes all variable costs associated with this problem) and still maintain the current contribution margin percentage?
c) What is the number of units that Wilson must achieve in the coming year to maintain the same net income after taxes as projected for the current year if the selling price of widgets remains at $9.60 per case and the variable production costs of widgets increase 15%?
Micro Economics Revenue Draw
"a. For the product shown, assume that the minimum point of each firm’s average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the... More > equilibrium price and quantity.
b. On the graph, label the area of consumer surplus as f. Label the area of producer surplus as g.
c. If the equilibrium price were $2, what would be the amount of producer surplus?
Decision Making Under Monopoly
"What should the monopolist do?
1. Shut down
2. Increase output – to reduce economic loss
3. Decrease output
4. Increase output – to increase positive profit
Ships in 3-5 business days
Buyers, sellers, entrepreneurs, managers and owners must make decisions regarding the lifeblood of their organization: what price to charge and what price to pay. The book's premise is that most... More > buyers and sellers do not understand pricing, nor are they supported by cost accounting systems, organizations or cultures that allow them to accurately set, discuss or evaluate pricing.
A business can have a great niche product, can be lucky with timing, staffed with the right people, adequately funded, etc, but it must always understand the basics of business: it must take in more than it spends; it must be able to sell its product or service for more than it costs to produce or provide.
The Exchange will help you and your organization (1) understand the accounting basics of business, (2) establish competitive and profitable pricing, (3) achieve the margins that your pricing assumes, and (4) identify suppliers that have a world class understanding of their product's value.< Less