Profit Maximization In Various Market Structures, Managerial Economics

Assignment Help:


My assignment is listed below, I need to know if you can correctly complete this entire assignment by providing the entire completed, mistake free solution, including providing the Excel Spreadsheet completed per instructions for question, number one (1)? I''ll also need a price, and the assignment completed by Friday, June 16, 2017 ** Please see reference area for assignment material source. Thanks


1.
Redstone Clayworks, Inc. is located in Sedona, Arizona and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot, Lowe’s, Front Gate, and other upscale home product chains. There is virtually no product differentiation. A clay fire pit is a clay fire pit.

The spreadsheet below gives some of Redstone’s production cost data. A template for the spreadsheet is provided in the Course Materials. You may download my template or create your own. Add columns to show, respectively, average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and short-run marginal cost (SMC).Then, add columns to show, respectively, total revenue (TR), marginal revenue (MR), total profit, average profit, and profit margin.
Assume that the world market demand and supply curves for clay fire pots intersects at $190 per unit.

Place your completed spreadsheet in the Drop Box, and use it to answer the following questions. Submission of your template is worth 10 points.

Q TC TFC TVC
0 7,000 7,000 -
100 14,000 7,000 7,000
200 23,000 7,000 16,000
300 32,000 7,000 25,000
400 43,000 7,000 36,000
500 52,000 7,000 45,000
600 74,000 7,000 67,000
700 97,000 7,000 90,000
800 111,000 7,000 104,000
900 132,000 7,000 125,000
1000 152,000 7,000 145,000



2.
If Redstone wishes to maximize profit MARGIN, how many units should it produce?

3.
What level of output should the manager of Redstone choose to produce? Explain your choice in 50-100 words.

4.
Make a copy of your spreadsheet and triple the fixed costs to 21,000. How does this change your answer to question 3? Explain your result in 50-100 words



5.
Suppose that fire pits fall out of fashion and prices fall worldwide to $95. How many units should the manager choose to produce? Explain your answer in 50-100 words.



References
Thomas, C.R. & Maurice, S.C. (2010). Managerial Economics: Foundations of Business Analysis and Strategy (10th ed.). New York: McGraw-Hill/Irwin.




Related Discussions:- Profit Maximization In Various Market Structures

Contracting and insider-outsider models of unemployment, CONTRACTING AND IN...

CONTRACTING AND INSIDER-OUTSIDER MODELS OF UNEMPLOYMENT   From  the  Walrasian  assumption  of  a market-clearing wage  on  efficiency considerations  -  it was  postulated  th

Gap between theory and practice in managerial economics, The gap between th...

The gap between theory and practise and the role of managerial economics: We have noted above that application of theories to the process of business decision making contributes a

Explain the shut down point, Q. Explain the Shut down point? ShutdownP...

Q. Explain the Shut down point? ShutdownPoint: With MR = MC, firm attains equilibrium at point E where it produces OM amount of the output. To produce this output, firm incur

Elasticity of demand, a. Explain why the demand for a particular brand is m...

a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast

Monetary policy, Monetary policy The problems concerning the abili...

Monetary policy The problems concerning the ability of monetary policy to influence the economy, as for instance the doubts about the ability of lower interest rates to st

Explain supernormal equilibrium, Q. Explain Supernormal Equilibrium? S...

Q. Explain Supernormal Equilibrium? Supernormal Equilibrium: E is the point of stable equilibrium as MC = MR and MC cuts the MR from below.   Figure: Supernormal Equ

Total cost (tc), Total Cost (TC) This is the sum of fixed costs and va...

Total Cost (TC) This is the sum of fixed costs and variable costs i.e. TC = FC + VC.

Open market operations, Open Market Operations The Central Bank holds ...

Open Market Operations The Central Bank holds government securities.  It can sell some of these, or buy more, on the open market, buying or selling through a stock exchange or

Recession, Causes of the Nigeria recession

Causes of the Nigeria recession

Advantages of product differentiation, Advantages of Product Differentiatio...

Advantages of Product Differentiation We can distinguish between those advantages for the firm itself and those for the consumer: a.          For the firm. i.

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