Should despero remain in market in long term at that price

Assignment Help Business Economics
Reference no: EM131386532

A.Despero Inc. has a production cost function described by C(q)=250+40/q+20q, and an associated marginal cost function of MC(q)=20-40/q^2. Currently, the price of the Despero product is $10 per unit.

A. How much Despero Inc. should produce if it chooses to produce?

B.Should Despero remain in the market in the long term at that price? What about the short term?

Reference no: EM131386532

Questions Cloud

Who will prevail in the given condition and why : Auburn refused to deliver the molds unless CBS paid the additional charge for engineering services. CBS claimed that the contract did not provide for a withdrawal charge. Who will prevail? Why?
Forward resolution and reverse resolution : What is the difference between forward resolution and reverse resolution? When is it better to use reverse resolution?
Determine the firm supply curve : Suppose that the manager of a firm operating in a perfectly competitive firm has estimated the firm’s AVC function to be: Determine the firm’s supply curve. What should be the industry price for the firm to produce 400 units of output in each period?
Hackers-operation get rich or die tryin : Research the group members identified in the video "Hackers: Operation Get Rich or Die Tryin'"-Albert Gonzalez, Stephen Watt, Damon Patrick Toey, Humza Zaman, and Christopher Scott. Pick a member of the gang and describe his motivation when he sta..
Should despero remain in market in long term at that price : A.Despero Inc. has a production cost function described by C(q)=250+40/q+20q, and an associated marginal cost function of MC(q)=20-40/q^2. Currently, the price of the Despero product is $10 per unit. How much Despero Inc. should produce if it chooses..
Provide decision in the given situation : Freeman denies entering into any agreement to sell the second four thousand bushels of wheat to Terminal Grain but admits that he received the two written confirmations sent by Maher. Decision?
Draw and label the four load and reaction forces : Draw and label the four load and reaction forces, using leaders and a text style based on the romans.shx font. Create another layer named Dimensions using the color cyan. Dimension the front view, placing the dimensions on layer Dimensions.
How would heterogeneous grouping assist fifth grade : According to Bradley (2016) an established theory allows for structure in the case study which assists in developing a comprehensible descriptions of the phenomenon, and this leads to identification of key variables for more in depth-research.The ..
Develop a marginal profit and loss statement : Develop a marginal profit and loss statement for this business opportunity. What is meant by benefit/cost ratio, average payback period and ROI and why are the all important to understand when purchasing new equipment?

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what is cost of each combination

illustrate what is cost of each combination. Illustrate what is minimum-cost combination. Plot iso-cost curves and isoquant, explain how cost-minimizing combination.

  Why does percentage gain in earnings observed when worker

Why does the percentage gain in earnings observed when worker gets one more year of schooling measure the marginal rate of return education?

  Equilibrium interest rate and domestic current account

Now assume that the economy is open and that the world interest rate is determined on the world market instead of in the domestic economy. Use a two-country model with initial current accounts equal to zero. How does an increase in domestic wealth af..

  Suppose the government sets controlled price

Suppose the government sets a controlled price below the market clearing price for a commodity. Draw a diagram and use the idea of a maximum buying price to explain whether the total price paid by the buyers will end up lower or higher than before.

  System of floating exchange rates

Assume that economic growth is slower in the United States than in its trading partners. Given a system of floating exchange rates, will the impact of this growth differential be for the United States with respect to exports and the value of the doll..

  Unions may improve productivity and efficiency except

The allocative efficiency loss implied by the diagram is a static, short-run loss. Compared to the static loss, the dynamic, long-run loss is probably: Evidence suggests that unions reduce firm profitability and discourage investment, so that: All of..

  Explain why in a perfectly competitive environment

Explain why, in a perfectly competitive environment, a profit maximizing firm will increase its labor force up to the number of workers that equates the prevailing wage rate to the value of the marginal product of labor (the marginal revenue product ..

  Motivated the policymakers cautious behaviour

In April 2000, the seasonally adjusted unemployment rate was 3.8%. By June 2001, the unemployment rate has increased to 4.5% yet the measures by the fedreal reserve tlo reduce short-term interest rates were taken in stages, and in fact the unemployme..

  Marginal rate of technical substitution between studying

Will’s grade (G) for an upcoming exam depends on the number of hours he studies marginal analysis problems (A), and the number of hours he studies supply and demand problems (R). Specifically, his grade production function is G = 7A0.5R0.5. What is W..

  Illustrate what will take place to provide as a result

If thousands of consumers begin buying MP3 players, illustrate what will take place to provide as a result.

  Draw their budget set in housing-other goods space

Draw their budget set (the combination of housing and other goods that they can afford) in housing-other goods space.

  Gasoline stations under perfectly competitive conditions

Gasoline is sold through local gasoline stations under perfectly competitive conditions. All gasoline station owners face the same long-run average cost curve given by AC = .01q-1 +100/q and the same long-run marginal cost curve given by MC = .02q-1 ..

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