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

Describe the managerial functions, Describe the Managerial functions A ...

Describe the Managerial functions A manager has to take numerous decisions that conform to the objectives of the firm. Several business decisions fall prey to conditions of ris

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

Discuss the impact of conflict in an organization, Question 1: Explain ...

Question 1: Explain the central theme of Scientific Management. Do you think that the scientific management enhances productivity in the organization? Give your arguments.

Nominal rigidities versus real rigidities, NOMINAL RIGIDITIES VERSUS REAL R...

NOMINAL RIGIDITIES VERSUS REAL RIGIDITIES    Nominal rigidities are said to exist when nominal prices and wages  do  not change in  the  face  of  conditions that call for thei

Least cost factor combination, Producers Equilibrium or Optimal Combination...

Producers Equilibrium or Optimal Combination of Inputs  The analysis of production function has demonstrated that alternative combinations of factors of production that are tech

Central bank functions-bank of central clearance, Bank of Central Clearance...

Bank of Central Clearance ,Settlement and Transfer This function was first developed by the bank of England toward the middle of the nineteenth century. In 1954, a scheme was

What statistical method used to estimate economic variable, Statistical tec...

Statistical technique used to estimate economic variable Some statistical techniques are used to estimate economic variables of interest to a manager. In a number of cases, sta

Circular flow of income and expenditure, The Circular Flow of Income and Ex...

The Circular Flow of Income and Expenditure This is an economic model illustrating the flow of payments and receipts between domestic firms and domestic households. The househo

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