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Production of a certain good is discrete and has a cost structure characterized as follows:
q
100
150
200
300
400
500
C(q)/q
250
220
190
188
Assume inverse demand is p(Q) = 300 - 0.2Q
a. Find the optimal monopoly output
b. Assume an incumbent monopoly operates according to (a). Is it profitable for a second firm to enter?
Ventris Company found that one of its manufacturing cells had actual cycle time of 15 minutes per unit. The theoretical cycle time for this cell was nine minutes per unit.
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Calculate the point price elasticity of demand for Dishwashing Liquid. Calculate the optimal price for Dishwashing Liquid if marginal cost is 70 per unit.
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