I am a little confused on the explnation for Part B. I would say no they should shut down their operation. Acme is a monopolist for a good with inverse demand P = 4000 – 6Q, where P is the price indollars and Q is the amount sold. Acme's variable costs are TVC(Q) = 4Q². With thesefunctions, the marginal revenue is MR(Q) = 4000 – 12Q and marginal cost is MC(Q) = 8Q.a) If Acme has no fixed costs, what is its profit maximizing price?b) If Acme has non-sunk fixed costs of $700,000, is it worth operating or should they shutdown?

Profit step-up is the short or long method through which an organization determines the evaluation,…

Answered: Acme is a monopolist for a good with…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bavarian Crystal works designs and produces lead crystal wine decanters for export to international markets. The production manager of Bavarian crystal works estimates total and marginal production cost to be: TC= 10,000+40 Q + 0.0025Q^2 And MC equals 40+0.005Q where cost are measured in US dollars in cuteness and number of wine decanters produced annually. Because Bavarian crystal works is the only one of many Christian producers in the world market, it can sell as many of the decanters it wishes for $70 apiece. Total and marginal revenue are: TR=70 Q and MR = 70 what is the optimal level are production of wine decanters? What is a marginal revenue from the last wine decanters sold? What part of total revenue, total costs, and net benefit (profit) from selling the optimal number of wine decanters? At the optimal level of production of decanters, extra decanted can be so for $70, thereby increasing total revenue by $70. Why does the manager of the firm not produce and sell one more…
Marginal Profit Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: • a weekly demand of 313 at a price of $13 per toaster • a weekly demand of 202 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,379 and variable costs (cost per unit) will be $4. Assume: • the relationship between price and demand is linear the cost function in linear Use your models to predict the marginal profit when Yaster is producing and selling 261 toasters per week. Round to the nearest cent. $ per toaster
SUNK COSTS. Caring Coffee Company is committed to building a new distribution center for their growing business. They have identified three potential sites. Here is a brief table with some of the costs involved in building a new center at each location (all in millions of dollars): Site A Site B Site C $0.4 $2.6 $3.7 $3.6 $0.7 $0.2 $0.2 $2.6 $4.2 $4.1 $0.5 $0.2 $0.5 $2.6 $4.5 $3.9 $0.6 $0.2 Research Land Materials Labor Таxes Cleanup (a) Which of these costs, if any, are SUNK COSTS in connection with this decision about which site to select? (b) Explain how you know.
What collective term would be used to describe the employees, investors, suppliers, and customers of a manufacturer of laboratory equipment?
Please provide answer with explanation
Please explain each process and show your work
Answer neatly. Thank you
Answer the attached question
The total profit equation for the firm is p =-500-25x-10x^2 -4xy-5y^2+15y ;x +y =100 .where x and y represents output levels.Us8ng substitution method determine the profit maximizing output levels for x and y .
The slope of TR and TC are each constant at 10 dollars and 5 dollars respectively and the total fixed cost is 1500 dollars, the breakeven is___________________? The market is [perfect or imperfect]?
Global Corp. sells its output at the market price of $13 per unit. Each plant has the costs shown below Units of Output Total Cost ($) 0 8 1 11 2 17 3 26 4 38 5 53 6 71 7 92 What is the breakeven quantity? Enter 0 if total profit is always negative. Please specify your answer as an integer. What is the breakeven revenue? Enter 0 if total profit is always negative. Please specify your answer as an integer. What is the profit at each plant when operating at its optimal output level? Please specify your answer as an integer. How many units of output should each plant produce? Please specify your answer as an integer.
Biwei decides to set up a small business in NYC. The start-up cost is $1000 for a license and the estimated direct cost is $4 per output. After one year, Biwei’s business becomes profitable. Sonia plans to enter the same business in thesame area. What would be the cost facing Sonia? Does she bear the same cost as Biwei?

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