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Assume you are the plant manager for Crossroads Sign Company, which produces road signs in a market that approximates perfect competition. Due to a slow economy, business has been slow and the company is losing money every month. The owners have asked you whether to continue operations or to shut down at least until the economy improves. You have the following information available: Marginal Revenue (MR) = $130 Total Cost (TC) = $1,100 + 135Q + 0.6Q2 Marginal Cost (MC) = 135 + 1.2Q As the plant manager, should you recommend to the owners that the plant be shut down for a while? Justify your answer using at least two analytical techniques and presenting the information graphically. I think that I have the answer but graphing MC, MR and TC I don't understand the grahping process.
I set up TR-TC to get the output level for maxium economic profits which I have was -2424.40
Set iMC=Change TC/Q to get ponit of minimuc Change TC Q= 42.817
Graphing was unclear; need to know if I at least started corrected with problem.
Calculate the markup percentage also target selling price that will allow Bolus Computer Parts to earn its desired ROI of 25% on this new component.
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As sitting in your office one evening, you begin to think about some of the key microeconomic messages you need to communicate to the Board.
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Comprise a reconciliation of the differences among the forecasts for GDP and a rationalization for which forecast
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High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
Either tenants occupy rent controlled buildings with a customers surplus deserve to live there.
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