Describe what action must be taken in terms of adjusting

Assignment Help Microeconomics
Reference no: EM13395762

Company A is a producer of widgets in a monopolistically competitive market structure. It is projected that as more widgets are sold Company A must offer a discount on each one to ensure adequate demand. Due to limited supplies and the cost of equipment maintenance the cost will rise as more widgets are produced.

The tables below provide data on the revenue and cost at different output levels for the year.

Quantity

TR

TC

0

$0.00

$10.00

1

$150.00

$30.00

2

$290.00

$50.00

3

$420.00

$80.00

4

$540.00

$120.00

5

$650.00

$170.00

6

$750.00

$230.00

7

$840.00

$300.00

8

$920.00

$380.00

9

$990.00

$470.00

10

$1,050.00

$570.00

11

$1,100.00

$680.00

12

$1,140.00

$800.00

13

$1,170.00

$930.00

14

$1,190.00

$1,070.00

15

$1,200.00

$1,220.00

Task:

Write an essay (suggested length of 1-3 pages) that explains the relationship between marginal revenue and marginal cost, and the importance of these concepts for profit maximization in which you do the following:

A.  Explain profit maximization from the following approaches:

1.  Total revenue to total cost

2.  Marginal revenue to marginal cost

B.  Explain the calculation used to determine marginal revenue.

1.  Discuss how marginal revenue increases, decreases, or remains constant in the given scenario.

C.  Explain the calculation used to determine marginal cost.

1.  Discuss how marginal cost increases, decreases, or remains constant in the given scenario.

D.  Explain where profit-maximization occurs for Company A using the chart provided in the given scenario.

E.  Explain what action should be taken in terms of adjusting output if it is determined that marginal revenue is greater than marginal cost.

F.  Explain what action should be taken in terms of adjusting output if it is determined that marginal cost is greater than marginal revenue.

G.  When you use sources, include all in-text citations and references in APA format.

Reference no: EM13395762

Questions Cloud

Based on your segmentation describe each of the target : create your own marketing strategy1.define and explain what segmentation is and discuss different segmentation bases
Your committee has been tasked with assessing the : for this case assignment you will be assuming the role of a lead person on a technology review committee at a
Find the price of the same apple canning copmany after : a company has been in the business of selling canned apples for the last thirteen years. the initial price of the apple
Identify and explain the underlying problem or conflict : selecting a for-profit organization of interest you will research an unusual or conflicting accounting principle that
Describe what action must be taken in terms of adjusting : company a is a producer of widgets in a monopolistically competitive market structure. it is projected that as more
What is marketing research how has the internet affected : q 1.what is marketing research? how has the internet affected marketing research? as a part of your answer address time
Explain callable preferred stock why do corporations issue : explain callable preferred stock? why do corporations issue such stock? given the different features that are
Assess what you will need to know or what questions need to : 1.imagine you have been promoted to a brand manager for a frozen pizza. the promotion is a challenge being that sales
Review the roles of management accounting in a company : review the roles of management accounting within a company. what is the most important role of management accounting?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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