5. Katie's Quilts is a small retailer of quilts and other bed liner products. Katie currently purchases quilts from a large producer for $100 each and sells them in her store at a price that does not change with the number of quilts she sells. Katie is considering vertically integrating by making her own quilts. If the fixed cost of vertically integrating is $10,000 and she can produce quilts at $50 per quilt, her total cost of producing quilts, q, herself is C 10000 + 50q. How many quilts does Katie need to sell for vertical integration to be a profitable decision? =

5. Katie's Quilts is a small retailer of quilts and other bed liner products. Katie currently purchases quilts from a large producer for $100 each and sells them in her store at a price that does not change with the number of quilts she sells. Katie is considering vertically integrating by making her own quilts. If the fixed cost of vertically integrating is $10,000 and she can produce quilts at $50 per quilt, her total cost of producing quilts, q, herself is C 10000 + 50q. How many quilts does Katie need to sell for vertical integration to be a profitable decision? =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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