Calculate marginal costs and Pbook-estimated market price, Microeconomics

Question

You are the COO at PineApple, a company that produces notebook computers for business people. The company has just developed a new model - Pbook. For production of Pbook, the company is considering production at all or some of the following plants.

1827_production of Pbook.png

As the COO, you need to find out how to allocate the production.

(i)  What are the marginal costs of plant 1, plant 2, and plant 3?

(ii) How would you allocate the production of Pbook? What % of total outputs should be produced at plant 1, plant 2, and plant 3?

(iii) One of your subordinates argues that either plant 2 or plant 3 does not need to be used as they have exactly same cost structure. Do you agree? Explain carefully.

(iv) Your marketing manager reported that that the estimated market price of the new product is P = $2,000 how many units are you going to produce in total? How would you allocate the production to each plant (how many units each factory should produce)?

Posted Date: 2/15/2013 1:44:03 AM | Location : United States







Related Discussions:- Calculate marginal costs and Pbook-estimated market price, Assignment Help, Ask Question on Calculate marginal costs and Pbook-estimated market price, Get Answer, Expert's Help, Calculate marginal costs and Pbook-estimated market price Discussions

Write discussion on Calculate marginal costs and Pbook-estimated market price
Your posts are moderated
Related Questions
Explain what the phrase “price rationing” means. Price rationing is the method by which the market system assigns goods and services to consumers while quantity demanded exceeds

An increase in the scale means that all inputs or factors are increased in a given proportion. Increase in the scale thus occurs when all factors or inputs are increased keeping fa

Distinguish demand pull, cost push and imported inflation using graphs where appropriate. What are the likely causes of current inflation in Australia?           Answer Co

PRODUCTION AND PRODUCTIVITY DIAGRAM BEHAVIORAL RELATIONSHIP

illustrate and discuss the implications of various market structures (competitive and non competitive) for price determination

Cyclical Fluctuations: Consider a situation where the value of money above trend indicates an unexpectedly high level of money in the recent past. The model predicts that this

HOW DO YOU ADJUST FISCAL POLICY FOR INTERNAL BALANCE



GENERAL PRINCIPLE OF EXTRACTION OF METALS