Profit-maximizing cost

Assignment Help Business Economics
Reference no: EM137505

Q. A corporation is allowing for building a bridge across a river. The bridge would cost $2 million to build as well as nothing to maintain. The subsequent shows the company's anticipated demand over the lifetime of the bridge:

a. Illustrate would be its profit-maximizing cost if the company were to build the bridge? Would that be the efficient level of output? Why or why not?

b. Illustrate would be its profit or loss if the company is interested in maximizing profit, should it build the bridge?

c. Illustrate cost should it charge if the government were to build the bridge,

d. Illustrate should the government build the bridge?

Reference no: EM137505

Questions Cloud

Independent of quantity produced : Clarify why might the Homo sapiens production possibilities curve have shifted outward to right much more rapidly than persons of Neanderthals.
Who want to engage in sports and leisure activities : A city passes the law to ban cars in its largest park on the weekends in order to make the park more inviting to people who want to engage in sports and leisure activities. Which could be described as an unintended consequence of the new law.
Domestic auto-makers increase the cost of automobiles : By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
Show the stages that children pass through : Explain and show the stages that children pass through in acquiring language. Comment on the theory or theories which seem to account best for facts of acquisition at various stages.
Profit-maximizing cost : Illustrate would be its profit-maximizing cost if the company were to build the bridge.
Suppose that mike cannot afford to pay the premium : Suppose that Mike cannot afford to pay the premium and lets his auto insurance policy lapse. At the time of the accident, he is uninsured. If the liability judgment against Donna $100 000, how much, if any, will Donna's insurer pay.
Marginal rate of substitution : Marginal rate of substitution between leisure as well as labor as well as the marginal product of labor in the Robinson Crusoe model.
James marshallian demand function : Elucidate in detail how banks operate. Include a description of how banks generate profits.
Perform an economic feasibility study for the investment : Perform an economic feasibility study for the investment into an e-commerce site. What discount rate is you using and why? Submit your paper, supporting documents, charts etc.

Reviews

Write a Review

Business Economics Questions & Answers

  Percentage increase in production workers

In what industry will a given percentage increase in production workers result in the largest percentage increase in output.

  Long-run macroeconomic steadiness

Write down on a paper analyzing dissimilar approaches that might be used by Keynesian theorists.

  What occurs when a new technology makes another one obsolete

Explain what occurs when a new technology makes another one obsolete in terms of economic profit?

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Equilibrium value of consumption and investment

Solve for the equilibrium interest rate. Solve for equilibrium value of consumption and investment.

  Sharp decline in oil prices

Explain why sharp decline in oil prices might not necessarily have positive or negative impact.

  Hiro nakamura is ceo of the cola king bottling company

Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals

  Sales manager of an appliance store

Nevertheless your total unit sales have increased over this period. Assuming rational buyers and no deceptive advertising, how can you account for this.

  Amount of imports fall

Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.

  Methods realistic and achievable

What are some methods for improving the financing of the U.S. health care system. Are these methods realistic and achievable? Justify your answer with solid reasoning and appropriate references.

  Do protectionist policies benefit producers

Do protectionist policies benefit producers, consumers, workers, or the government

  Concept of diminishing marginal utility

The opportunity cost of Juan's time is $8 per hour. If Juan receives $2 per pound for his fish, what is the optimal number of hours he should spend fishing.

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