The theory and estimation of cost, economics, Microeconomics

Write Equations Of Average Total Cost Variable Cost Marginal Cost, Economics
Write equations for total cost, average total cost, variable cost, and marginal cost.


The Central Publishing Company is about to publish its first textbook in managerial economics. It is now in the process of estimating costs. It expects to produce 10,000 copies during its first year. The following costs have been estimated to correspond to the expected copies.

A paper stock $8,000
B typesetting $15,000
C Printing $50,000
D Art (including graphs) $9,000
E Editing $20,000
F Reviews $3,000
G Promotion $12,000
H Binding $22,000
I Shipping $10,000
In addition to the preceding costs, it expects to pay the authors a 13 percent royalty and its salespeople a 3 percent commission. These percentages will be based on the publisher’s price of $48 per book.
Some of the preceding costs are fixed and others are variable. The average variable costs are expected to be constant. Although 10,000 copies is the projected volume, the book sell anywhere between 0 and 20,000 copies.
Posted Date: 2/7/2012 12:40:50 AM | Location : United States







Related Discussions:- The theory and estimation of cost, economics, Assignment Help, Ask Question on The theory and estimation of cost, economics, Get Answer, Expert's Help, The theory and estimation of cost, economics Discussions

Write discussion on The theory and estimation of cost, economics
Your posts are moderated
Related Questions
What defines the fact that the value of global production has grown by a factor of 4.6, while the value of global production per capita has grown by a factor of 2? The enhance

In the short run, the size of the plant is fixed whereas in the long run a firm can adjust its plant size. One of the choices in the long run will be the short run plant size. That

What is affected variable and cause variable?  In a graph, one variable is dependant and the other is independent. The dependant variable is known as effect variable and indepe

2) Proctor & Gamble (P&G) and the Lever Co. decide to form a laundry detergent cartel for future sales in Europe. Lever is more efficient than P&G. a)illustrate graphically how the

The concept of opportunity cost occupies a very important place in modern economic analysis. The opportunity cost of any good is the next best alternative goods that are sacrificed

using the basic Keynesian model answewr the following parts carefully using the relevant diagrams. what happens to the equilibrium level of GDP(Y) given the following: a) a reducti

In June 2009, Textile co. (a domestically located firm) purchased 1000 yards of cloth from India (a foreign country) for $1000. Textile co. hired Elizabeth and paid her $5000 to s

Shifting the PPF Curve To raise the manufacturing of one good without reducing the production of the other, the PPF curve should shift outward. The PPF curve shifts outward as

Creating Mobile Telephone Infrastructure: The second concept of subsidising the telecom infrastructure required for providing services in rural and remote areas is designed to