Production technology-what is break-even price

Assignment Help Business Economics
Reference no: EM13736561

Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $6. The first unit costs you $64 to produce. If you receive a request for proposal (RFP) on a project for four units, what is your break-even price? Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is your break-even price for those two units?

Reference no: EM13736561

Questions Cloud

Draw it with increasing opportunity costs : Suppose an economy produces three goods - Economy with three goods (rice, bananas, and strawberries), Draw its PPF assuming constant opportunity costs. Then draw it with increasing opportunity costs
Based off of walter energy publicly traded : How does the Average Total Cost (ATC) of the mines in Canada compared to the ATC of the Alabama mines? Sketch the ATC and Marginal Cost of the whole company (include all mines in the graph, the graph has to be approximate, it should give an idea of h..
Local golf course just bought lawn mowing machine : A local golf course just bought a lawn mowing machine. It comes with 2 yr free maintenance. The manager wants to provide enough money in an 8.00% bank account now (EOY -0) to have a fund out of which he will pay for needed maintenance.
What is the amount of the annual payment : A Japanese car maker plans to expand its production in the United States. The company borrowed $189,969,147 for this expansion at an interest rate of 8% per year. The loan will be repaid in equal payments at the end of each year over a 15-year period..
Production technology-what is break-even price : Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $6. The first unit costs you $64 to produce. If you receive a request for proposal (RFP) on..
Price sensitivity and price discrimination : Price Sensitivity/Price discrimination A physical therapy treatment can use a high tech machine to massage patients or a certified massage therapist. If the cost of the machine per unit of service is $100 and the cost of the therapist per unit of ser..
What level of confusion socially efficient : Consider a class of 25 Microeconomics students, some of whom are confused about a concept after a professor explains it. A student who reveals his confusion by asking a question loses 10 utile. However, when the professor clarifies the concept, each ..
What product characteristic refers to the situation : What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?
Consumed as a result of the out-of-pocket price reduction : Assume demand for a medical service is given by the equation P = 1000-2Q. Assume the price without insurance is $100, but insurance reduces the consumer’s out-of-pocket price to $50. How many extra services will be consumed as a result of the out-of-..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Amount of advertising that a restaurant conducts

At a separating perfect Bayes-Nash equilibrium, what is the maximum amount of advertising that a restaurant conducts. What is the minimum amount.

  Budget lines for food and shelter as directed.

Draw 4 budget lines for food and shelter as directed. The consumer has $500 income, faces an absolute price for shelter of 10, and a budget line slope of -5. (Shelter is on the horizontal axis.)

  Illustrate what are the advantages of using capital

Illustrate what are the advantages of using capital in the production process. What is meant by the term "division of labor".

  Illustrate what do the nominal interest rate also the real

Illustrate what do the nominal interest rate also the real interest rate that Whitney can earn. Whitney puts money in a savings account at her bank earning.

  Price of restaurant meal results in drop in quantity demand

A $1.00 increase in the price of a restaurant meal results in a drop in quantity demanded of 5 meals.

  Federal reserve do during the financial crisis

Elucidate how does TARP illustrate the problem of moral hazard. Illustrate what did the Federal Reserve do during the financial crisis.

  What would the balance be at the end of years

You are making $1,000 quarterly deposits into a fund that pays 8% interest compounded quarterly. What would the balance be at the end of 10 years?

  Find out the equation for the firm''s labor demand curve

Find out the equation for the firm's labor demand curve. Find the optimal level of labor for the firm to demand.

  W edwards demanding often referred to as the leading

w. edwards demanding often referred to as the leading quality guru in the united states as well as psychologist alfie

  Property taxes might be progressive

Which of the following statements suggests that property taxes might be progressive?

  Is limitless growth really possible

Is limitless growth really possible? What forces do you think will be most important in slowing or halting economic growth?

  Elucidate what is the probability that a randomly

Employment data at a large company revel that 72% of the workers are married, that 44% are college grads,and half of the college grads are married. Elucidate what is the probability that a randomly chosen worker;

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