What happens to the afc per paper and the mc per paper

Assignment Help Microeconomics
Reference no: EM13237618

You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can't get out of. You also have a marginal printing cost of $.25 per paper as well as marginal delivery cost of $.10 per paper. If sales fall by 20% from 1 million papers per month to 800,000 papers per month, what happens to the AFC per paper, the MC per paper, and the minimum amount that you must chager to break even on these costs?

Reference no: EM13237618

Questions Cloud

Explain what is the total pressure exerted by gas mixture : In a gas mixture, the partial pressures are nitrogen 0.559 ATM, oxygen 115 torr, and helium 0.296 mm Hg. What is the total pressure (in torr) exerted by the gas mixture
What is the acceleration of the wing tip : An aircraft performs a maneuver called an aileron roll. During this maneuver, the plane turns like a screw as it maintains a straight flight path, which is the acceleration of the wing tip
How many popsicles will be sold per day in the long run : ADVANCED ANALYSIS Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit-elastic (Es = 1.0).
Language strengthening/revitalization attempts : Why is literacy seen as important in language strengthening/revitalization attempts? In what ways have Mayan literacy attempts been successful in San Juan Comalapa?
What happens to the afc per paper and the mc per paper : You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can't get out of.
Explain a gas system has initial volume and temperature : A gas system has initial volume and temperature of 8160mL and 467.0K. If the temperature changes to -151C, what will the resultant volume be in mL
What is its velocity in the opposite direction after he jump : On a hot summer afternoon, Keith is out fishing in a rowboat when he decides to jump into the water and go for a swim, what is its velocity in the opposite direction after he jumps
How is the utility best allocated between a and b : Advanced MUa = z=10-x and MUb = z = 21 - 2y, where z in marginal utility per dollar in the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B
Album on the occasion of international women''s day : United Nation has released "One Women" album on the occasion of International Women's Day. Name the Indian Artist who was the member of this album?

Reviews

Write a Review

Microeconomics Questions & Answers

  Difference between elastic and inelastic demand

What is the difference between elastic and inelastic demand. Please be precise. If a restaurant increases its price of coffee from $ 1.00 to $ 1.20 and quantity demanded falls from 100 cups to 80 cups. How can I compute the price elasticity of dema..

  Explain the rapid development in india

In 1999, India did not have shopping malls. It now has more than 100 malls. explains this rapid development.

  Question about economics in global environment

We make selections as customers every day. Opportunity cost is defined as a person's next best option or the cost of what you give up when you make a choice.

  Multiple linear regression model- analysis

Estimate the linear model described in part (a) using Ordinary Least Squares regression and display your regression results.

  Does the advertising is economically inefficient

Advertising can inform buyers, but sellers must incur costs to advertise. If so, advertising can result in higher prices to consumers. Does this mean advertising is economically inefficient If not, explain how it can simultaneously create value an..

  How the demand for sugar is elastic

When the price of sugar was "low," consumers in the United States spent a total of $1 billion annually on its consumption. When the price doubled, consumer expenditures actually increased to $3 billion annually.

  Whether shortage or surplus

In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units

  Advantages of herfindahl index over concentration ratios

What are the advantages of the Herfindahl index over concentration ratios in measuring degrees of concentration in an industry? (b) What is the disadvantage of both?

  The opportunity cost of taking summer jobs

College students sometimes work as summer interns for private firms or for the government. Many of these positions pay very little or nothing.what is the opportunity cost of taking such a job.

  Equilibrium price-equilibrium quantity

Assume the labor force decreases in size due to the large number of people reaching retirement age and subsequently entering retirement. At the same time real interest rates in the economy fall. What will happen in the economy?

  Calculate the profit maximizing output

)Determine the range of prices for which the firm earns a profit. 3) Calculate the profit maximizing output and the resulting profit when price is $101.

  Explain profit maximizing decision of pure monopolist

Please help describe profit maximizing decision of pure monopolist firm and compare it to the profit maximizing decision of the firm in a purely competitive market and a monopolist firm in the competitive market.

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