Please Help, Managerial Economics

Assignment Help:
Jane, the manager of a company manufacturing air-conditioning units can choose between two production technologies for a new product line. If she chooses and installs technology 1, the yearly costs will be C1(q) = 3600 + 65q + 36q2. If she installs technology 2, they will be C2(q) = 900 + 900q + q2.

a. What are the average total costs of production for each technology? What are the average variable costs of production?

b. Which technology would Jane prefer (purely from a cost standpoint) if the company expected to sell 30 units in summer and 10 units in winter each year?

c. The marginal cost associated with these two technologies are MC1 = 65 + 72q and
MC2 = 900 + 2q respectively. At what level of output, the average cost will be minimized for both technologies?

Related Discussions:- Please Help

Currency swaps, Currency Swaps If the currency of one country is not c...

Currency Swaps If the currency of one country is not convertible, the central banks o f the two countries can exchange their currencies, and the country with the non-convertib

Explain about cardinal utility, Q. Explain about Cardinal utility? A me...

Q. Explain about Cardinal utility? A measure of utility or satisfaction derived from consumption of services and goods which can be measured using an absolute scale. Cardinal u

Illustrate about forecasting in management, Illustrate about forecasting in...

Illustrate about forecasting in management A forecast expert has been asked to provide quarterly estimates of the sales volume for a specific product for the next four quarters

Managerial Economics, Calculate point elasticity of demand for demand funct...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Determine the elasticity of demand, Elasticity of Demand As the law of ...

Elasticity of Demand As the law of demand establishes a relationship between quantity demanded and price for a product, it doesn't tell us exactly as how weak or strong the rel

Determine the market demand curve, Determine the Market demand curve Ma...

Determine the Market demand curve Market demand curve is the horizontal summation of individual demand curves. The individual demand schedules plotted graphically and summed up

Central bank functions-controller of credit, Controller of Credit The p...

Controller of Credit The principles of credit control by the central bank were discovered and enunciated after the publication of Bagehot Lombard street in 1873. Even after 187

Ramsey pricing, Describe ramsey pricing with detailed examples

Describe ramsey pricing with detailed examples

Structural unemployment - reason for protection, Structural Unemployment ...

Structural Unemployment The decline of the highly localized industry due to international trade causes great problems of regional (structural) unemployment.  If it would take

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