You own a printing firm. Two of your senior managers provided you with advice. The first manager states that your company is losing money for every unit that is printed. To minimize losses, she advises that you reduce your production levels. The second manager states that if your firm sells some more units, the price will cover your increase in costs. In order to reduce losses, the second manager recommends that you should increase production. Explain which manager is correct and who is offering the correct advice

Q: Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and…

A: The current output/month= 1800 The current labor input/month= 8×640$=5120$ The current capital…

Q: demand for restaurant meals

A: With the pandemic in place, many people are less likely to go to the restaurants and sit for a meal.…

Q: Supply for a product is given by 2p - 9 + 6 = 0 and demand is given by (D + 9)(9 + 10) = 3696.…

A: Introduction The equilibrium price is the price where demand and supply markets are equal. Total…

Q: You are a manager at a certain factory that designs small gadgets. The factory has been quite…

A: Decision trees provide a visual representation of the problem at hand allowing an individual to…

Q: The American Baker’s Association reports that annual sales of bakery goods last year rose 15…

A: Corporate economics is focused on the examination and analysis of corporate finances utilizing…

Q: You are a new entrant in a market with just one Incumbent, who sells a roughly equivalent product.…

A: A Duopoly Market is defined as a market where there are two or more sellers. There are three types…

Q: Firm​ X, a leading manufacturer of rubber tires in country​ A, caters to almost​ one-third of the…

A: The recession is a period of increasing unemployment in the economy with decreasing level of GDP in…

Q: ou are the vice president of a firm. After some analysis, you have determined that increasing the…

A: It is given that when the salaries of workers are increased by 10% then company's profit also…

Q: For the past few months, an airline has had 25% empty seats (unsold roundtrip tickets) on its Boston…

A: The elasticity of the good refers to the responsiveness of demand for a good to the change in the…

Q: Suppose you are the manager of a chain of computer stores. For obvious reasons you have been closely…

A: According to the question, manager of computer store has learnt that the Congress has passed laws in…

Q: Explain, using supply and demand analysis, why the price of sugar has been increasing recently. 2.…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Q. Gamma Corporation, one of the firms that retains you as a financial analyst, is considering…

A: The question is based on the notion of resource allocation in economics, with a special emphasis on…

Q: Practice 2 In 2016, the foot and mouth disease also known as "fièvre Aphteuse " outbreak in…

A: Market equilibrium is a fundamental concept in economics that describes a situation in which the…

Q: You are the manager of medium-sized company that assembles personal computers in Ghana. You…

A: In case of Normal Good as the income increases, the quantity demanded for normal good increases and…

Q: Management decisions about demand, supply, production, pricing, and market structure are all…

A: According to the question, Demand, supply, output, price, and market structure are all…

Q: City Condos Construction, CCC, obtained a loan to purchase city land for a premium condominium…

A: The above model hypothesizes an equilibrium of condo floors in a competitive market. MC = marginal…

Q: Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the…

A: The curve that depicts the quantities of goods and services that are being purchased at various…

Q: Spot markets are an efficient way for the firm to purchase inputs if

A: Opportunism refers to the behavior of taking advantage of situations for personal gain, without…

Q: Respond to the question with a concise and accurate answer, along with a clear explanation and…

A: We are given information in this issue regarding the American Baker's Association reporting a large…

Q: You are the general manager of a firm that manufactures personal computers. Due to a soft economy,…

A: Average Variable Cost (AVC) of producing a unit of output is: AVC = Material cost + Labor cost = 600…

Q: Vicky needs a new bathroom. She finds Dmitri, a contractor, through an ad he posted in the local…

A: Firms operating in a market incur different costs. The costs include the cost of raw materials,…

Q: Total

A: Calculate the average variable cost to produce 1 unit of PC as follows:Average variable cost =…

Q: Assume you are the manager of a small South African firm which sells nails, identical to those…

A: a) The firm sells nails that are identical to nails sold in the market by the other suppliers. This…

Q: Your marketing department has identified the following customer demographics in the following table.…

A: The application of economic principles and ideas to the research and analysis of company finances is…

Q: ed a series of episodes involving country risk. Shell’s operations are centred in Nigeria’s Ogoni…

A: Shell is facing a problem from local land owner because as per them shell in turn makes more from…

Q: Eric lives in Denver and operates a small-company selling bikes. On average, he receives $773,000…

A: The implicit costs are the costs that already occurred and are not reported as separate expenses in…

Q: The business venture involves the sale of decorative jewelry cases. It costs the startup $280 to…

A: Production refers to the changing of inputs into output. Cost refers to the amount that is incurred…

Q: Andrew lives in Houston and operates a small company selling drones. On average, he receives…

A: Explicit costs are those costs that involve direct monetary payment by the firm. These costs are…

Q: You are the manager of a train company. Recently total sales have been a bit low and you are now…

A: 1.Because concerned company is price maker,therefore it can lower the price and let demand behave as…

Q: You are the manager of a firm that produces output in two plants. The demand for your firm's product…

A: Demand function : 26 - 2Q  Q = Q1 + Q2  C1 = 5 + 1.5 Q12 C2 = 10 + Q22

Q: You are the manager of a firm that sells a "commodity" in a market that resembles perfect…

A: Expected price is the price for a good in the market that consumers and producers expect depending…

Q: rcrombie & Fitch, once the favorite of loyal teens, is considering lowering prices on all items it…

A: Gross profit is the amount of money a company keeps after deducting all of the expenses incurred in…

Q: Respond to the question with a concise and accurate answer, along with a clear explanation and…

A: In this exercise, we delve into the dynamics of a market using the Graph Input Tool. Our objective…

Q: You are the manager of a firm that produces furniture. All your clients are in Kumasi (K) and Accra…

A: It is a profit maximization problem with 2 plants at different locations. Profit will be maximized…

Q: Firm​ X, a leading manufacturer of rubber tires in country​ A, caters to almost​ one-third of the…

A: Recession is a situation in the economy, when there is general decline in the economic activity. For…

Q: rket research has also shown that the demand curve for train tickets is downward sloping. You may…

A: The law of demand states that – when other factors remain constant (cetris peribus), price and…

Q: The manager of a large apartment complex knows from experience that 100 units will be occupied if…

A: Let's use t to represent the number of nine-dollar increments in which the rent will be raised, R to…

Q: You are the manager of a firm that sells a “commodity” in a market that resembles perfect…

A: The cost function of the firm C(Q)=2Q+3Q2          .... (1) Let p denote the probability that the…

Q: You are the manager of a train company. Recently total sales have been a bit low and you are now…

A: The demand and supply forces are considered the invisible forces that act and react to help the…