What is the supply function if the firm has avoidable

Assignment Help Financial Management
Reference no: EM13986110

Suppose a competitive firm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C(Q) = 10Q + (Q2/160). The marginal cost is given by MC = 10 + (Q/80).

a. How many spaghetti dinners should the firm make each day?

b. What if the firm has avoidable fixed costs of $1562.50?

c. What is the firm's supply function if there is no avoidable fixed cost?

d. What is the supply function if the firm has avoidable fixed costs of $1562.50? 

Reference no: EM13986110

Questions Cloud

Standard normal curve : The area under the standard normal curve that lies to the left of -1.39 is 0.0823. Without consulting a the table giving areas under the standard normal curve, determine the area under the standard normal curve that lies to the right of 1.39.
Interval of the true variance and standard deviation : A random sample of 15 snow mobiles was selected, and the lifetime (in months) of the batteries was measured. The variance of the sample was 8.6. Find the 90% confidence interval of the true variance and standard deviation.
What is the acceleration of the ball while on the incline : Wwhat is the acceleration of the ball while on the incline? What distance doed the ball travel along the incline while it's accelerating? How fast is the ball going at the bottom of the incline?
What is the expected number : What is the probability that 4 or more live in poverty? What is the probability that 3 live in poverty? What is the expected number (mean) that live in poverty
What is the supply function if the firm has avoidable : What is the supply function if the firm has avoidable fixed costs of $1562.50? What is the firm's supply function if there is no avoidable fixed cost?
What is the probability that she makes errors : Use the normal approximation to the binomial distribution - Assuming this rate continues into this year and she prepares 60 returns, what is the probability that she makes errors
What is the velocity of the crate at the bottom of the ramp : A 15kg crate, initially at rest, slides down a ramp 2m long and inclined at an angle of 20 degrees with the horizontal. If there is no friction between the ramp surface and crate, what is the velocity of the crate at the bottom of the ramp?
What is kinetic energy of ball when it reaches final positon : The ball starts from rest at an initial position xi and moves under the influence of the force to a final position xf. What is the kinetic energy of the ball when it reaches final positon xf.
One-half of its components function : A communications system consists of n components, each of which will, independently, function with probability p. The total system will be able to operate effectively if at least one-half of its components function.

Reviews

Write a Review

Financial Management Questions & Answers

  What was the annual increase in selling price

In January 2007, the average price of an asset was $28,658. 7 years earlier, the average price was $20,808. What was the annual increase in selling price? In percentage form

  Choice of two investment accounts

You have your choice of two investment accounts. Investment A is a 14-year annuity that features end-of-month $2,000 payments and has an interest rate of 8.5 percent compounded monthly. Investment B is a 8.0 percent continuously compounded lump sum i..

  Company stays solvent and is not too liquid

As a financial manager, what can you do to make sure your company stays solvent and is not too liquid? How do you determine if the company has too much liquidity?

  Portfolio allocates equal funds

Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co. stock has an annual return mean and standard deviation of 15 percent and 38 percent, respectively. Woodpecker, Inc., stock has an annual return mean and standard deviation..

  Implied by the two outstanding debt issues

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $72, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate..

  Why do so many organizations purchase insurance policies

This is due to the insurance company's administrative costs and profits. In spite of this fact, why do so many individuals and organizations purchase insurance policies?

  Considering buying machine that would give net cost savings

A company is considering buying a machine that would give a net cost savings of $70,000 per year for 10 years. The cost of the machine is $325,000. The company's weighted average cost of capital is 12%. What is the difference in the payback and disco..

  What is the market expectations of the price that the bond

The Treasury plans to issue a 2-year maturity, 9% coupon bond that'll pay coupons once per year. The face value of the bond is 100. The yield-to-maturity on 1-year zero-coupon bonds is currently 7%. The yield-to-maturity on 2-year zeros is 8%. Assumi..

  A non-parent entity l ltd acquired on 1 july 2010 a 21

a non-parent entity l ltd acquired on 1 july 2010 a 21 voting interest in p ltd for 190000 cash.nbsp the recorded

  Sell its inventory and then collect the payment on the sale

Syed's Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200 and cost of goods sold of $3,400. How long does it take Syed's to both sell its inventory and then collect the payment on the sale?

  What is the best estimate of these bonds remaining life

Lloyd Corporation's 14% coupon rate, semi annual payment, $1,000 par value bonds, which mature in 30 years, are callable 5 years from today at $1,050. They sell at a price of $1,353.54, and the yield curve is flat. Assume that interest rates are expe..

  What is expected return on the portfolio

You own a portfolio that has $2,500 invested in Stock A and $3,500 invested in Stock B. If the expected returns on these stocks are 10 percent and 16 percent, respectively, what is the expected return on the portfolio? (Show your work.)

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