User Account

All Pages

Is formula for determining correct level of output mr

Assignment Help Microeconomics
Reference no: EM13395517

A cupcake store is located in a mall and is the only cupcake store in that mall.  The demand schedule for cupcakes (per dozen) is given in the table below.  If the marginal cost to produce a dozen cupcakes is $4 per unit, how many units should the firm produce? 

Price

Quantity Purchased

 

   (Dozen per day)

 $12

     3

 

 $11

     7

 

 $10

    12

 

 $9

    20

 

 $8

    35

 

 $7

    60

 

 $6

   100

 

 $5

   160

 

 $4

   250

 
  1. What price should the cupcake store charge? 
  2. If the fixed cost for the firm is $100 per day, how much profit will the firm make in one day? 
  3. What is the price elasticity of demand at the optimal price/quantity combination (use the next lower price level as the second point in your calculation)? 
  4. Is the formula for finding the correct level of output (MR greater than MC means that (P-MC)/P is greater than 1/lel) is satisfied?

Reference no: EM13395517

Questions Cloud

Drwins theory of evolution was made around three central : darwins theory of evolution was developed around three central principles the principle of variation the principle of
Explain the relationship between extensive limited and : 1.explain the relationship between extensive limited and routine decision making relative to high- and lowinvolvement
Find out the initial investment in fixed assets supposing : general food is considering building a new plant in denver colorado. the company currently owns some land in denver
Examine the role of management as it relates to finance in : examine the role of management as it relates to finance in a corporation.nbsp in your post discuss the role of
Is formula for determining correct level of output mr : a cupcake store is located in a mall and is the only cupcake store in that mall.nbsp the demand schedule for cupcakes
Begin by researching an online consumer product or service : every product or service has a buying process even digital products and services. in this assignment you will research
Construct a hedge strategy of a bond portfolio for a : construct a hedge strategy of a bond portfolio for a company of your choice. select a publically traded company and
Determine the causative agent of the disease is it a : what is the causative agent of the disease? is it a bacterium a virus a prion or a eukaryote?1. if it is a bacterium
Assume that two countries engage in free trade recognize : suppose that the u.s and japan are two ricardian economies. both countries can produce only two goods automobiles and

Reviews

Write a Review

Microeconomics Questions & Answers

  Economists often study and evaluate economic policies

Economists often study and evaluate economic policies by country or region. As an economist, evaluate different regional trading arrangements. Select one regional trading arrangement and describe three economic effects of the arrangement. Plea..

  What is the meaning of price serves as a rationing device

One of the functions of price is to ration resources and goods and services. What do we mean when we say price serves as a rationing device Elaborate your response in relation to scarcity and in terms of the demand and supply model

  Analyze the process of forecasting foreign-exchange rates

analyze the process of forecasting foreign-exchange rates and create a short list of best practices. explain your

  What are the arguments for using real per capita gni

Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..

  Difference between monopoly and oligopoly

Describe the difference between a monopoly and an oligopoly, and a cartel and provide an example of the monopoly, an oligopoly, and a cartel and write down the welfare effects of monopolies and oligopolies.

  Political implications and influences

Provide alternative perspectives from experts on technology

  Why is monopolist revenue curve different from competitor

This assignment focuses on the comparison of perfect competition and monopoly in terms of efficiency and fairness. To complete this assignment you must complete all of the following questions. Microeconomic Problem

  Computing an allocation for a planned socialist

Computing an allocation for a planned socialist economy is prone to great computational difficulties.

  Speculate on the main reasons for the trend

From the e-Activity, examine the federal budget over the past 25 years. From the data, determine which of the two (2) forces appears stronger: falling revenue or spending growth. Speculate on the main reasons for the trend. Provide a rationale..

  Suppose that unusually hot weather causes the demand curve

Suppose that unusually hot weather causes the demand curve for ice cream to shift to the right. Why will the price of ice cream rise to a new market-clearing level?

  What is the slope of the line described by this equation

What is the slope of the line described by this equation: P = 3Q + 1/2? P is plotted on the vertical axis, and Q is plotted on the horizontal axis.

  Evaluate the gdp impact of positive change in government

you are told that 75 cents out of every extra dollar pumped into the economy goes toward consumption as opposed to

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd