Reference no: EM1369881
In a retailing operation, total costs can be expressed as a function of total sales. A small store found recently that when their total sales increased form $1,000 to $4,000, their costs increased from $750 to $1,500.
a. Which is the dependent variable and which is the independent variable? Explain.
b. Supposing that a linear functional relationship exists, determine the equation that relates total costs to total sales.
c. As long as the total revenue is between $0 and $5,000, this relationship is expected to hold. Graph the function over the appropriate range.
d. Describe why the nature of the relationship may change if sales exceed $5,000.
e. Determine and interpret C(2,000).
f. Compute the profit when sales are $2,000.
g. What level of sales would be needed in order for the company to achieve the profit of $2,500.
|
Derive an expression for the monopolist optimal quantity
: Assume a monopolist faces the market demand function P=a-bQ. Its marginal cost is given by MC = c+ eQ. Suppose that a > c and 2b + e > O.
|
|
Technological applications
: Personal attitudes about technology might influence business decisions and what are some ways to prevent this from happening?
|
|
Explain plants significantly affecting animal-s life cycle
: Which of the give is best example of plants significantly affecting animal's life cycle? Choose answer maple tree provides sweet syrup for humans. Choose answer A grove of orange trees is affected.
|
|
Market demand, and price elasticity
: Determine what ways are company isoquant maps and individuals' indifference curve maps based on the same idea? What are the most important ways in which these concepts differ?
|
|
Determining linear equations
: Supposing that a linear functional relationship exists, determine the equation that relates total costs to total sales. Describe why the nature of the relationship may change if sales exceed $5,000.
|
|
Short run average variable cost
: Assume that at current consumption levels an individual marginal utility of consuming an extra hot dog is ten whereas the marginal utility of consuming an extra soft drink is 4.
|
|
Business management - analysis
: Do you think communication within an office setting should be considered private and confidential and Please explain why or why not?
|
|
How can electronic forums improve group communications
: How can you use electronic forums to improve group communications, deliver training, create a think-tank, or integrate project management
|
|
Analysis of break even
: Pizza Restaurant has the following revenue and Cost Functions: Find out break-even output. Find out quantity.
|