Choosing the appropriate level of output for his firm

Assignment Help Business Economics
Reference no: EM13999432

Suppose that you are having a discussion with a manager from a profit-maximizing firm about choosing the appropriate level of output for his firm. The manager says that his business has exceptionally high fixed costs. He explains that he attempts to mitigate this fact by producing more units of output in order to “spread” these costs over many units of production (i.e., he is attempting to lower average costs). As a seasoned economics student, what would you tell this manager about his approach to choosing his business’s output level, ceteris paribus?

Reference no: EM13999432

Questions Cloud

Jackpot mining company operates a copper mine : Compute depletion and depreciation on the mine and mining equipment for 2011 and 2012. The units-of-production method is used to calculate depreciation.
How dario and asturias construct a latin american identity : write a one page essay in which you analyze the similarities and/or differences in how Dario and Asturias construct a Latin American identity. Make sure to include an analysis of the literary techniques employed by the authors such as, metaphor, s..
Identify the stakeholders : Identify the stakeholders in this case. Explain the impact of the fraud on each of the stakeholders. In case 9, Healthsouth: The Rise and Fall of the Scrushy Empire
Determine a topic of interest : Determine a topic of interest, hopefully, related to your dissertation. Provide a summary background that culminates into a problem statement of interest based on current
Choosing the appropriate level of output for his firm : Suppose that you are having a discussion with a manager from a profit-maximizing firm about choosing the appropriate level of output for his firm. what would you tell this manager about his approach to choosing his business’s output level, ceteris pa..
Freitas corporation was organized early : Prepare a summary journal entry to record the $107,000 in cash expenditures.
What structure would be the best structure for the us : What structure would be the best structure for the US? Be sure to support your answer with the advantages of the method you select and the disadvantages of the other tax rates structure.
Purchase a high efficiency air conditioner : An energy manager has $5000 available to purchase a high efficiency air conditioner that has a life of 6 years. The manager would like to know what should be the energy cost savings needed each year to justify the purchase (a) if the interest rate is..
Social definition and legal definition of crime : Explain the difference between a social definition and legal definition of crime - differentiate the two types of criminal law: substantive and procedural law.

Reviews

Write a Review

 

Business Economics Questions & Answers

  The fed can reduce the money supply by

The Fed can reduce the money supply by,

  What rate of return-in terms of nominal annual rate

Your cat just won the local feline lottery to the tune of 3000 cans of "9-Lives" cat food (assorted flavors). A local grocer offers to take the 3000 cans and in return, supply 30 cans a month for the next 10 years. What rate of return, in terms of no..

  Illustrate what do laws of supply and demand predict

Illustrate what do laws of supply and demand predict would be result of an immediate removal of minimum wage in terms of price of labour and quantity available.

  Elucidate what is the best form of business organization

Elucidate what is the best form of business organization to select based on various considerations, including taxes, liability, capital contributions, sharing of profits adn losses, management and control, and survivorship

  Determine if the firm''s mix of inputs is optimal

Determine if the firm's mix of inputs is optimal. Explain. If your answer to "b" is no, what should the firm do to improve its performance? Explain.

  Organization of petroleum exporting countries

Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.

  Short-run aggregate supply curve slopes

The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. The long-run aggregate supply curve can never shift. Either a decrease in the nominal money supply by the Federal Reserve, all else held..

  Unified system to two completely independent systems

You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the Congressional Joint Committee on Taxation to weigh in on a number of issues currently unde..

  Explain why sharp decline in oil prices might

explain why sharp decline in oil prices might not necessarily have positive or negative impact on the US equity markets (stock market) even at the current trend of volatile oil prices

  What price of computers the two countries might trade

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.

  Decrease in the price of bread results

Bread and butter are complements. A decrease in the price of bread results in a(n)

  Higher rice elasticity of demand-bread or lettuce

In the spring of 2002, lettuce price doubled from about $1.5 to $3 per head. The reaction of one consumer was quoted in newspaper article; "I will not buy lettuce when it is a $3 a head" she said, adding that other green vegetable can fill in for let..

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