Optimal Production Quantity, Microeconomics

Assignment Help:

Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.50 per card, and the cost of printing is $0.25 per card. The company receives $2.25 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 4,700 and standard deviation 700. (Assume these four are independent.)

What is the optimal production quantity for the card? (Use Excel''s NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round your answer to the nearest whole number.)

Related Discussions:- Optimal Production Quantity

#t, what are the relevance of economics to most business today??

what are the relevance of economics to most business today??

Economic appraisal, Economic appraisal - Appraisal , which seeks to quantif...

Economic appraisal - Appraisal , which seeks to quantify, and where possible calculate the welfare impacts from, the costs and benefits of a project or policy.

Keynes theory and expectations, Expectations played a major role in Keynes'...

Expectations played a major role in Keynes' theory of the determination of aggregat output and employment in market economies in the short run. Expectations about future yields on

General equilibirium, What is the theory of second best? Prove the theorem ...

What is the theory of second best? Prove the theorem with the help of a diagram

Keynesian model, in the keynesian model the price is assumed to be what? a....

in the keynesian model the price is assumed to be what? a.exogeneous and remaaining constant b. endogeneous and remaining constant which is correct?

Assignment, state the law of downward sloping demand

state the law of downward sloping demand

When is the price of a product demand determined, When is the price of a pr...

When is the price of a product demand determined? The price of a product is demand defined while the product is in fixed supply. This means that the price of the product is defin

Oppurtunity cost, 1. Assume that Malaysia can produce cencaluk at 25 bottle...

1. Assume that Malaysia can produce cencaluk at 25 bottles per worker and belacan at RM5 per worker. Assume that Indonesia can produce 10 bottles of cencaluk per worker and 20 pack

Market structures, implications of market structures on price determination...

implications of market structures on price determination

Write Your Message!

Captcha
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