Astro Computers makes onboard vehicle control computers for the Tesla. The production department has gathered data on the costs of several yearly production levels and asked you to help interpret these for them. 1. The data for Astro appear in the graph below. The COO asks what production level he should set for the coming year, if Astro operates in a perfectly competitive market. (the graph is in the picture) 2. Is Astro earning “excess profit” (explain what that means if you think they are) and how other firms will react when they see Astro’s performance? 3. The production department has also done a bit of research on other firms operating in the market for onboard control computers. The graph below shows the relative sizes and cost structures of the four largest firms in the market (Data, Astro, Consolidated and BCS); these four firms combined account for 35% of business in the market for onboard control computers. There are over fifteen firms that supply onboard control computers to Tesla and other auto makers. They are standard and uncomplicated to build. The COO asks you whether you expect the price per unit to remain at the same level or change (rise or fall?). What will cause any adjustments you identify?
Astro Computers makes onboard vehicle control computers for the Tesla. The production department has gathered data on the costs of several yearly production levels and asked you to help interpret these for them.
1. The data for Astro appear in the graph below. The COO asks what production level he should set for the coming year, if Astro operates in a
2. Is Astro earning “excess profit” (explain what that means if you think they are) and how other firms will react when they see Astro’s performance?
3. The production department has also done a bit of research on other firms operating in the market for onboard control computers. The graph below shows the relative sizes and cost structures of the four largest firms in the market (Data, Astro, Consolidated and BCS); these four firms combined account for 35% of business in the market for onboard control computers. There are over fifteen firms that supply onboard control computers to Tesla and other auto makers. They are standard and uncomplicated to build.
The COO asks you whether you expect the price per unit to remain at the same level or change (rise or fall?). What will cause any adjustments you identify?
(picture 1 is for question number 1, picture 2 is for question number 2, the questions are also included in the pictures)
![The production department has also done a bit of research on other firms operating in the market for
C.
onboard control computers. The graph below shows the relative sizes and cost structures of the four
largest firms in the market (Data, Astro, Consolidated and BCS); these four firms combined account
for 35% of business in the market for onboard control computers. There are over fifteen firms that
supply onboard control computers to Tesla and other auto makers. They are standard and
uncomplicated to build.
|Price (or Cost)
Per unit
Industry Cost Structure
(Onboerd Control Computers)
ATC.
Dete Computen
Arte
Computen
Consolideted
BCS Computer
Computer
Pice in te Markat
Avege Total Cost per Unit
nduatry na whole"
(LRATC)
Quantity
(over time)
The CO0 asks you whether you expect the price per unit to remain at the same level or change (rise or
fall?). What will cause any adjustments you identify?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F332b9bef-02e5-40ff-a951-c6be0e1a1d11%2Fb701c32f-6b16-4310-9506-f0871a495d13%2Fvq93qqd_processed.png&w=3840&q=75)
![а.
The data for Astro appear in the graph below. The COO asks what production level he should set for
the coming year, if Astro operates in a perfectly competitive market.
Price
(or Cost)
Per unit
Astro Computer Production Data
(Business Proprletary)
(MC)
-Market Price
(ATC)
TAVC)
Quantity
(units per year)
15,000)
(13,000}
(10,000)
f6,000}](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F332b9bef-02e5-40ff-a951-c6be0e1a1d11%2Fb701c32f-6b16-4310-9506-f0871a495d13%2Fitzjh7p_processed.png&w=3840&q=75)
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