At the current output level

Assignment Help Microeconomics
Reference no: EM13751152

Your coffee mug company is currently producing at an output level of 200 units per month. Fixed costs are $500 per month.  At the current output level, you know that marginal cost is $10 and equal to average total cost. At an output level of 150, you have determined that marginal cost would be $6 and equal to average variable cost. The market price of coffee mugs is $8. If your goal is profit maximizing, should you continue at , increase q above 200, or reduce q below 200? Would you do better to shut down? 

Reference no: EM13751152

Questions Cloud

What is the note about loretta swits character in mash : What is the note about Loretta Swit's character in MASH and Who were the two leading men who played the leading role in Bewitched
Determine the motivational strategy or strategies : Determine the motivational strategy or strategies that would likely be most appropriate for each of your three employees based on their individual characteristics,
Should banks have to hold 100% of their deposits : 1.For the following list of items, indicate if they are in M1, M2, or neither:1-1)Your $5,000 line of credit on your Bank of America card1-2)$50 dollars' worth of traveler's checks you have not used yet1-3)$1 in quarters in your pocket
What are its strengths and weaknesses : How would you evaluate each team's action plan and "script". What are its strengths and weaknesses
At the current output level : Your coffee mug company is currently producing at an output level of 200 units per month. Fixed costs are $500 per month.  At the current output level, you know that marginal cost is $10 and equal to average total cost. At an output level of 150, you..
Explain why solution would help the middle-income customer : Select a recommendation from the two creative solutions - Explain why the solution would help the middle-income customer. Provide credible sources to support your decision.
What were the main causes of the great depression : What were the main causes of the Great Depression of the 1930s? Why did the Depression cause such severe unemployment in industrialised countries? Why were governments around the world so ineffective in dealing with this crisis?
Analyze the types of measures used for decision making : Analyze the types of measures used for decision making. Analyze the five key competitive priorities and their relationship to operations strategy. Analyze different types of technology and their role in manufacturing and service operations.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Marginal net benefits-marginal benefits-total net benefits

The change in benefits that arises from a one-unit change in quantity is the: marginal net benefits. Marginal benefits, Total net benefits, variable benefits.

  Arguments in court would the plaintiff make to support claim

A country has 2 established car manufactures, both of which have an exclusive network. Dealers have to sign a contract that explicitly forbids selling cars of any other make. An upstart new manufactures sues them for damages with the claim that these..

  How many ads will the clubs want to purchase as a group

Each of 50 golf clubs in the Niagara Region has a demand for generic advertising of Q = 200 - P. Ads cost $3000 each. How many ads will the clubs want to purchase as a group?

  Demand curve - equilibrium of demand and supply

An increase in consumer incomes will lead to a rightward shift of the demand curve for plasma TVs and the price of automobiles were to increase substantially, the demand curve for gasoline would most likely

  What happens to total revenues from oranges due to freeze

Suppose the demand for oranges in the U.S. is: P = 5.35 - .012 Q. Where Q is the quantity demanded for oranges in the U.S. (measured in millions of boxes per year) and P is the price per box. Suppose the current price of oranges is $3 per box. A deep..

  What would be the effect of such a comparable worth law

Suppose the EEOC uses a job-scoring system and determines that the wage rate for a secretary is $50 per hour, while the competitive labor market wage rate is $10 per hour. What would be the effect of such a comparable worth law

  Economic issues represented by the topics

The article must be representative of the economic issues represented by the topics or focus. The article review must include a brief summary of the facts in the article using economic terms.

  Self-correcting mechanism of free market systems

Through the great recession of 2008 in the US, the study indicates that the demand for unskilled and semi-unskilled workers to hire has declined, however the wage structure paid to the workers hired at all levels did not change significantly through ..

  Explain the characteristic of oligopolistic industries

A market has the following characteristics: there are many firms, few barriers to entry, each firm acts independently with differentiated products, and no possible long-run economic profit. The difference between a perfectly competitive firm and a ..

  Instituting the pollution tax

Who gains and who loses from instituting the pollution tax?

  What are the corresponding prices and mucs

What are the efficient quantities for each of the two periods? What are the correspondingprices and MUCs?

  1 the following table shows the number of calculators that

1. the following table shows the number of calculators that can be assembled per week by various numbers of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd