Micro economics-perfect competition

Assignment Help Business Management
Reference no: EM131263383

Micro Economics, Perfect Competition.

Question: Your t-shirt company operates in a perfectly competitive market. It is currently producing at an output level of 200 units per month. Fixed Costs are $500/month. At the current output level you know that marginal cost is $10 and equals the Average Total Cost. At an output level of 150 you have determined that marginal cost would be $6 and equal to the Average Variable Cost. The market price for t-shirts is $8.

a) if your goal is profit maximization, what should ou do with the production level? Explain.

b) should you shut down? Explain and present the situation graphically.

Reference no: EM131263383

Questions Cloud

Estimate of the company net operating income in month : Bolding Inc.'s contribution margin ratio is 60% and its fixed monthly expenses are $49,500. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $141,000?
Quantity demanded per period of time : The market demand equation for a pair of Wrangler Jeans is Q = 840 - 0.50P, where Q = quantity demanded per period of time and P = price of Jeans in dollars.
Contrast the population-based orientation of public health : Contrast the population-based orientation of public health with the individual-centered focus of private health practitioners. Provide two examples.
Explain how situational crime prevention is utilized : In an essay, explain how situational crime prevention is utilized in reducing crime. In your discussion, please provide one example of a situational crime prevention measure and explain whether drug, violent, or property crimes are better suited t..
Micro economics-perfect competition : Your t-shirt company operates in a perfectly competitive market. It is currently producing at an output level of 200 units per month. Fixed Costs are $500/month. At the current output level you know that marginal cost is $10 and equals the Average..
What are seven goals of ethical business communicators : What are seven goals of ethical business communicators? . - When you are faced with a difficult ethical decision, what questions should you ask yourself?
Consuming a bundle of goods : A household is currently consuming a bundle of goods X and Y such that MUX/pX = 1 and MUY/pY = 2. The household can increase its "utility" by consuming less X and more Y. True or false and why?
Identify three variations of e-gov web sites : Identify three variations of e-gov Web sites. Visit three e-gov Web sites and identify which Web site best meets your needs. Justify your choice of Web sites.
Describe benefits and possible risks with proposed approach : Victim Offender Mediation, Family Group Conferences, Healing and Sentencing Circles, and Community Restorative Boards are four restorative processes described in this module. Discuss some of the differences among them and indicate in what circumst..

Reviews

Write a Review

Business Management Questions & Answers

  New system for riordan to use to improve its business

Propose a new system for Riordan to use to improve its business. A full description of the new system, a description of its components, and the benefit it will provide to Riordan

  Different sources and types of authority

Health Care Organizations Management and what are the different sources and types of authority

  Computing future value of salary

Computing Future Value of Salary. Throughout a job interview Pam Thompson is obtainable a salary of 23,000. The company gives annual increases of 6 percent.

  Calculate the inventory turnover metric

Calculate the inventory turnover metric for this data. Your answer should have three (3) decimal places in it.

  Discuss the banks involvement with small firms

Contact a local banker to discuss the banks involvement with small firms participating in international business.-

  Describe how one could adjust the dollar amount

Describe how one could adjust the dollar amount reported in the land account as of December 31, 2011, if the steady dollar assumption were dropped.

  What evidence-based strategies would you use?

What evidence-based strategies would you use?

  Structuring the is system

From the e-Activity, suggest the most important attributes of other hospital's information systems (IS) that you would need to consider when structuring the IS system in your own hospital. Provide a rationale for your response.

  Sustainable competitive advantage

How may a business achieve the "sustainable competitive advantage" when it adopts a specific business level strategy (i.e. low cost leadership, differentiation or integrated strategy)? Using the "Three-order fit model" 3 to discuss.

  Design a business strategy for the emirates group

Write an essay for 3 - 4 pages. Please provide references. Topic: Design a business strategy for the Emirates group for the next three years. Ironically for emirates, the flydubai discount airline may posses the largest threat to the firm because d..

  Determining the businesses and industries

Highlight the impact that government policy changes can cause on businesses and industries.

  Define and explain the purpose of tqm

Define and explain the purpose of TQM. What elements within a manufacturing environment need to be reduced or eliminated as part of a Lean Manufacturing focus?

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!

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