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QopyQatt specializes in printing business cards and resumes, using the latest laser technology. After analysis of the business, the manager has determined that weekly demand can be approximated by Q = 25,000 - 1000P. The firm's cost function is C = 25,000 + 13Q + .002Q2, where Q is output per week.
a. Determine the profit maximizing price and output.
b. The night supervisor believes that extending QopyQatt's hours by two hours in the evening would substantially increase volume. The manager is willing to stay open for two hours over the next three months as an experiment. What results would lead you to recommend that QopyQatt remain open later in the evening on a permanent basis?
c. A former employee decides to sue QopyQatt, alleging employment discrimination. Although management claims innocence, they agree to settle out of court. The settlement requires QopyQatt to pay the employee $10,000 per month for the next year. Determine the optimal price and output for the shop under these new conditions.
There is also a slim chance the legislature will provide the full funding and bonds don't need to be sold, a 5% chance. There is also a 1% chance that a donor will come forward and put their name on the building and pay 10% of the cost. What is th..
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data for a firm's output at various levels of employment (L) to calculate: a) its marginal physical product of labor (MPPL) schedule; (b) its (MPPL/MRCL) schedule, given a fixed wage (W = MRCL) of $25 per hour per worker. (c) Assuming that capital..
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