QUESTION 2Classify the following statement as true or false. Justify the answer. The justification is more important than the classification.The typical coffee shop's efficient scale of production is equal to 80 units. If the market demand function is Q-5000-1000P and in the long run 50 coffee shops are active, then the long-run price of a coffee will be 1 euro.For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).IEXQME52x² X₂ 3 51 11B I U S ParagraphArial10ptEMM±✓991122.

The efficient scale of production for a typical coffee shop is equal to 80 units. There are similar…

QUESTION 2 lassify the following statement as true or false. Justify the answer. The justification is more important than the classification. of production is equal to 80 units. If the market demand function is o-5000-1000p and in the long run 50 coffee shops are active, then the long-run price of a coffee will be 1 euro.

QUESTION 2 lassify the following statement as true or false. Justify the answer. The justification is more important than the classification. of production is equal to 80 units. If the market demand function is o-5000-1000p and in the long run 50 coffee shops are active, then the long-run price of a coffee will be 1 euro.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.2IP

See similar textbooks

Similar questions

Only typed answer
A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $84309 per month. The variable cost per thousand board feet is $220.0 for demand 2176 units. The price charged will be determined by P-$739-0.07D per 1000 board feet. For this situation, calculate the profit for the mentioned scenario. Select one: a. 1045034.93 O b. 713586.68 C. 3498584082.68 d. 1213500.68
please solve it on a paper
Only typed answer and don't use chat gpt
please helps asap
rb
A company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25
The following graph shows the daily demand curve for bikes in Houston. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 240 220 200 Total Revenue 180 160 140 120 100 80 60 40 20 0 PRICE (Dollars per bike) 0 9 18 27 > 36 45 54 63 72 QUANTITY (Bikes) 00 8 Demand 90 81 99 106
A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p= 200-0.05D where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is $15000 per month and the variable cost is $50 per unit. a. What is the number of units that should be produced and sold each month to maximize profit? b. What is the domain of profitable demand during a month? Show your spreadsheet.
That's it
The cost, in dollars, of producing x yards of a certain fabric is C(x) = 900 + 12x - 0.1x² +0.0005x³ and the company finds that if it sells x yards, it can charge p(x) = 27-0.00021x dollars per yard for the fabric. (a) Graph the cost and revenue functions. y 8000 6000 4000 2000 y 15 000 10 000 5000 R C 100 R =² C 100 200 200 300 300 X 400 400 X Use the graph to estimate the production level for maximum profit. 283.092 x yards y 15 000 10 000 5000 y 15 000 10 000 5000 R 100 R C 100 200 200 (b) Use calculus to find the production level for maximum profit. (Round your answer to two decimal places.) 186.63 yards 300 300 400 400 X
show complete solution on a paper