1 aspen inc is a manufacturer and distributor of digital

Reference no: EM13373683

1. Aspen, Inc., is a manufacturer and distributor of digital recording decks for commercial recording studios. Revenue and cost relations are: TR = $3,000Q - $0.5Q²

MR = dTR/dQ = $3,000 - $1Q

TC = $100,000 + $1,500Q + $0.1Q²

MC = dTC/dQ = $1,500 + $0.2Q

A. Calculate output, marginal cost, average cost, price, and profit at the average cost-minimizing activity level. Explain your answers briefly.

B. Calculate these values at the profit-maximizing activity level. Explain your answers briefly.

C. Why is the level of output which maximizes profit different than the level of output which minimizes average cost? What is considered in the former case that cost minimization does not? Explain your answer well.

2. Describe each of the following statements as true or false, and explain your answers well.

A. To maximize the value of the firm, management should always produce the level of output that maximizes short run profit

B. The demand curve will be downward sloping if marginal revenue is less than price.

C. Marginal profit equals zero at the profit maximizing level of output.

D. To maximize profit, total revenue must also be maximized.

E. Marginal cost equals average cost at the average cost minimizing level of output.

Reference no: EM13373683

Questions Cloud

Write an essay about a time when you had to discuss an : write an essay about a time when you had to discuss an important issue with someone close to you describe the

1 please answer true or false and explain your answer a : 1. please answer true or false and explain your answer. a consumer purchases a book by driving across town to a

1given the demand curvep 20-05qwhere p is the dollar price : 1.given the demand curvep 20-0.5qwhere p is the dollar price per unit and q is the number of units sold per month and

The state board chairperson has asked you a consultant on : the state board chairperson has asked you a consultant on health and wellness to write and informative paper about

1 aspen inc is a manufacturer and distributor of digital : 1. aspen inc. is a manufacturer and distributor of digital recording decks for commercial recording studios. revenue

Formal report topic this assignment is based on you : formal report topic this assignment is based on you choosing two possible career choices you would recommend to an

Answer the questions belowwhat is a survey what is the : answer the questions belowwhat is a survey? what is the purpose of a survey? give examples of types of surveys or

You need to responses to this questions about acawhat : you need to responses to this questions about acawhat provisions of aca are intended to reduce or increase directly the

Ethics principles the non-profit josephson institute : ethics principles the non-profit josephson institute lists six pillars of character that are basic values that

User Account

All Pages