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

Real and nominal measures, Real and nominal measures Output, Expenditu...

Real and nominal measures Output, Expenditure and Income can be valued at current market price in which case we speak, for example, of money or Nominal NNP, or NNP valued

Monetary policy, Monetary policies This is the direction of the econom...

Monetary policies This is the direction of the economy through the variables of money supply and the price of money.  Expanding the supply of money and lowering the rate of in

Barriers to entry in pure oligopoly, Barriers to entry in pure oligopoly ...

Barriers to entry in pure oligopoly The barriers to entry can be artificial or natural. Artificial Barriers This can be acquired through: State protection throu

Factors affecting the total market demand, Factors affecting the total mark...

Factors affecting the total market demand These are broadly divided into the determinants of demand and conditions of demand. (a)      Own price of the product This

Calculate maximize total revenue, A city has two newspapers. Demand for eit...

A city has two newspapers. Demand for either paper depends on its own price and the price of its rival. Demand functions for paper A & B respectively, measured in tens of thousands

Managerial economic, gap between economic theory and business practice

gap between economic theory and business practice

Price-output determination under oligopoly, (Kinky Demand Curve) Short Peri...

(Kinky Demand Curve) Short Period Kinked demand curve was first used by Prof. Paul M. Sweezy to elucidate price rigidity under oligopoly. In an oligopoly market, firm knows that

What is consumer demand , Consumer Demand is how much of something that co...

Consumer Demand is how much of something that consumers are wanting. A company requires to know the consumer demand so they know how much of a product to build.

Paper money, Paper Money Due to the risk of theft, members of the publ...

Paper Money Due to the risk of theft, members of the public who owned such metal money would deposit them for safe keeping with goldsmiths and other reliable merchants who

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