q, Business Economics

Assignment Help:
You have an opportunity to invest in a new plant. The fixed costs are $100,000 per year. The marginal cost of production is $2 for a quantity up to 10,000 units per year. The marginal cost of production is $4 for quantity between 10,001 and 30,000 units per year (an additional 20,000 units per year) and $10 for production above 30,000 per year.


Answer the following questions. Show your work.

1) What is the break even quantity or quantities if the market is competitive and the market price is $8 per unit?
2) If the market is competitive and the market price is $8 per unit, what production range would the plant operate?
3) What is the break even quantity if the fixed cost per year was $310,000 per year, the market is competitive and the market price is $12 per unit?

Related Discussions:- q

Why is AIDs a major economic problem, Why is AIDs a major economic problem?...

Why is AIDs a major economic problem? AIDs are a tragedy which is affecting the structure and size of population. There AIDs is widespread in between the economically active th

Find taxes that arise at a median voter, In a model where a continuum of in...

In a model where a continuum of individuals have preferences for consumption and leisure as follows w i = c i + ln(x i ) and individuals differ in their labour endowments e

Scan factors., Assess the current environmental scan factors that are relev...

Assess the current environmental scan factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plant operations and man

Business assignment, Ask question #. Explain why under fixed exchange rates...

Ask question #. Explain why under fixed exchange rates the monetary policy is not effective#

What is economic partnership agreement, Problem 1: "African Caribbean a...

Problem 1: "African Caribbean and Pacific (ACP) countries no longer have preferential access to the European market for their exports, except under provisions of „Special and D

OLIGOPOLY, EXPLAIN WHY INTERDEPENDENCE IN OLIGOPOLY RESULTS IN A TENSION BE...

EXPLAIN WHY INTERDEPENDENCE IN OLIGOPOLY RESULTS IN A TENSION BETWEEN COOPERATION AND COMPETITION.

Define advocates of the international monetary fund argue, Define advocates...

Define advocates of the International Monetary Fund argue. Advocates of the International Monetary Fund (IMF) argue • Competitive devaluations were a characteristic of the i

Write Your Message!

Captcha
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