Calculate the mc of producing an additional cycle

Assignment Help Macroeconomics
Reference no: EM131921320

Firm A makes and sells motor cycles. The total cost of each cycle is the sum of the costs of frames, assembly and engine. The firm produces its own engines according to the cost equation CE = 250,000 + 1,000q +5q2

The cost of frames and assembly is $2,000 per cycle. Monthly demand for cycles is given by the inverse demand equation:

p = 10,000 - 30q

Calculate the MC of producing an additional engine. Calculate the MC of producing an additional cycle. Find the firm's profit maximizing quantity and price.

Reference no: EM131921320

Questions Cloud

Cost of operating the engineering center : If the MARR is 15%, determine the equivalent annual cost of operating the engineering center.
Calculate the restaurants average check by meal period : Sales revenue is derived at 20% from breakfast, 30% from lunch, and 50% from dinner. Calculate the restaurants average check by meal period
Why your research is significant to the area of death : Introduction section with the purpose of the study and research question, and why your research is significant to the area of death and dying.
Possible exchange rate policies : Explain and discuss the 3 possible exchange rate policies (Flexible exchange rate, Fixed exchange rate and Crawling peg) that can be adopted by any government
Calculate the mc of producing an additional cycle : Calculate the MC of producing an additional cycle. Find the firm's profit maximizing quantity and price.
Calculate the operating income from the function : Calculate the operating income from the function and justify your decision to accept or reject the booking
Analyze the role success case methodology would play : Research an organization that has struggled due to a lack of measurement and evaluation within the workplace.
Cigarette consumption and consumer spending on cigarettes : Estimate the effect the price increase will have on cigarette consumption and consumer spending on cigarettes (in percentage terms) include a graph
How can we reconcile the terms non-theistic : Buddhism is often described as a non-theistic religion. How can we reconcile the terms "non-theistic" and "religion" in the case of Buddhism?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Illustrtae the total fixed costs - total variable cost

Illustrtae what are the total fixed costs - total variable costs, and total cost of the lab given its current capacity.

  How much revenue as a share of output did inflation

The amount that the government raises from the inflation rate tax is ΔM. (ΔM = change in money stock or the printing of more money or the change in the amount of money today from yesterday). Write ΔM as a fraction of nominal GDP.

  Marginal revenue curve for a perfectly competitive

1. The marginal revenue curve for a perfectly competitive firm is ___________.

  Determine the probability that cool-aire will incur an

Cool-Aire Corporation manufactures a line of room air conditioners. Its break- even sales level is 33,000 units. Sales are approximately normally distributed.

  Show the effect on the economy

Initially, an economy is in? long-run equilibrium with a real GDP of? $4 trillion. Suppose that increases in marginal tax rates on wages reduce the supply of l

  What would be present worth today of acquisition for profit

In an effort to compensate for shrinking land-line customers, SBC and Bell South (owners of Cingular Wireless LLC) got into a building war with Vodaphone to acquire AT&T Wireless. If the buyout took exactly 1 year to close (i.e., end of year 1).

  Calculate the inflation rates for the years ended

Calculate the inflation rates for the years ended June 2013 and June 2014. Explain how the inflation rate changed in 2014. What does it indicate on the price level?

  Briefly explain what a government deficit is

Briefly explain what a government deficit is and then outline the methods the government has available to it for financing government spending programs. What effect on the monetary base do these government deficit financing options have on the mo..

  What the game theory matrix looks like without the law

Using a traditional game theory 2x2 matrix, show how this law prevents a prisoner's dilemma and thereby actually makes models better off. In other words, show what the game theory matrix looks like without this law.

  Explain how does a firm then maximizes their revenue

The definition of a price maker is a firm with some power to set the price beacuse the demand curve for its output slopes downward, which is effect, means those firms with a downward sloping demand curve have have some market power.

  Will fields with both oil and gas have greater difficulties

Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization than ..

  Production possibilities curve for medical services

Draw a bowed-out production possibilities curve (PPC or PPF) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd