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

Concept of economies of scale, Q. Concept of economies of scale? Econom...

Q. Concept of economies of scale? Economies of scale refers to the cost advantages that a business attains because of expansion. 'Economies of scale' is a long run concept and

Real rigidities in the credit market, Real Rigidities in the Credit Market ...

Real Rigidities in the Credit Market How imperfections in the goods markets enable firms  to  set  prices  so  as to  generate  price  rigidities,  e.g.,  because of countercy

Explain measuring arc elasticity, The concept of point elasticity is applic...

The concept of point elasticity is applicable where change in price and the resulting change in quantity are infinite or small. Though, where change in price and consequent hunger

Recession, Causes of the Nigeria recession

Causes of the Nigeria recession

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

Marginal utility approach, Marginal utility approach The downward slop...

Marginal utility approach The downward sloping nature of the demand curve can be explained by using the law of diminishing marginal utility .  For instance, consider a consum

Assumptions of monopolistic competition, Assumptions of Monopolistic Compet...

Assumptions of Monopolistic Competition Monopolistic competition as the name implies, combines features from both perfect competition and monopoly.  It has the following featu

What is the minimum cost of producing each level of output, Suppose that in...

Suppose that in an isoquant mapping, you should consider three isoquants with 1000, 2000 & 3000 units of output. The price of capital is Rs 2 a unit, and the price of labor is Rs 1

State the method of price elasticity of demand, Price elasticity of demand ...

Price elasticity of demand The price elasticity of demand is defined as the degree of sensitiveness or responsiveness of demand for a commodity to the changes in its price. Mo

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