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In the aftermath of a tornado in Albany, Georgia, Joe took a month-leave of absence (without pay) from his $7,500 per month employment in order to operate a kiosk that sold fresh drinking water. During the month of his operation, Joe paid $1,500 in kiosk rent and purchased water at a wholesale price of $1.25 per gallon.
(a) Write an equation that summarizes the cost function for his operation.
(b) If consumers are willing to pay $2.50 per gallon of drinking water, how many gallons of water must be sold in order to make a profit? Show your steps and calculations.
(c) Carefully discuss the relationships among marginal cost, average variable cost, average total cost and average fixed cost, when a firm could produce any level of output.
The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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