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

Describe Dalton''s law of partial pressures, specification of Dalton''s law of partial pressures, Dalton''s law states that, at a given known temperature total pressure exerted b

When there is a positive expected rate of inflation (i.e., an expected and sustained increase in the levels of all prices), the Benefit Cost Ratio of a proposed project will take o

The sole producer of the anti-diarrhea drug STOP supplies two retail pharmacies in an isolated village. The two pharmacies compete à la Cournot in a market characterized by an inve

If there is an industry and some of the companies get shut down, how would you graph the short run and long run effects

Capital Account: The Capital Account presents transfers of money and other capital items and changes in the country's foreign assets and liabilities resulting from the transac

NETWORK EXTERNALITIES Till this point we have assumed that people's demands for good are independent of each other. Actually, a person's demand can be affected by the number

Explain the Demand Pull Inflation Demand Pull Inflation:    Occurs when aggregate demand exceeds aggregate supply. If there is an excess level of demand in the economy, this w

Q. Define Regressive Tax? Regressive Tax: A tax in that lower-income individuals or households bear a proportionately greater burden of the tax. Sales taxes aretypically consid

differentiate between normative and positive statements in economics with the help of a statement