q, Business Economics

Assignment Help:
You have an opportunity to invest in a new plant. The fixed costs are $100,000 per year. The marginal cost of production is $2 for a quantity up to 10,000 units per year. The marginal cost of production is $4 for quantity between 10,001 and 30,000 units per year (an additional 20,000 units per year) and $10 for production above 30,000 per year.


Answer the following questions. Show your work.

1) What is the break even quantity or quantities if the market is competitive and the market price is $8 per unit?
2) If the market is competitive and the market price is $8 per unit, what production range would the plant operate?
3) What is the break even quantity if the fixed cost per year was $310,000 per year, the market is competitive and the market price is $12 per unit?

Related Discussions:- q

Important to the success, Brand names can be important to the success of a ...

Brand names can be important to the success of a firm in some industries. Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competitio

Constraints facing governments in promotion of development, What are the co...

What are the constraints facing governments in the promotion of development? The constraints facing governments into the promotion of development: The capability of a govern

What steps are needed to ensure proper change control, Changes frequently b...

Changes frequently bedevil IS projects. What steps are needed to make sure that proper change control is exercised onto a project? An effective change control system involves t

What is failure effectiveness of multi-national companies, What is the fail...

What is the failure effectiveness of multi-national companies (transnationals) in the promotion of development? TNC FDI failure into hindering development: • TNCs are accus

What are the similarities among the developing economies, What are the simi...

What are the similarities among the developing economies? Common characteristics of LDCs (Less Developed Countries) include: • Low living standards (that is low real income

Explain the primary competitors of corporation, 1.) Write a concise one-par...

1.) Write a concise one-paragraph summary (no more than ½ a page!) of the corporation. This would include, for example, its products, its industry, its primary competitors, the exc

Managerial economics, #question the importance of managerial economics..

#question the importance of managerial economics..

What are the objectives and instruments of monetary policy, QUESTION 1 ...

QUESTION 1 (a) What are the objectives and instruments of monetary policy? (b) "With financial liberalisation, there is a need to shift from direct instruments to indirect m

Managerial economics, how does economic theory contribute to managerial dec...

how does economic theory contribute to managerial decisions?

Economics problem, The manager of a movie production company is thinking of...

The manager of a movie production company is thinking of investing in new graphics computers for a price of $325,000. The computers are expected to have a useful life of 3 years.

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