Determine what is jerrys marginal cost

Assignment Help Econometrics

Reference no: EM13202273

Given a numeric production schedule, you will calculate profit and make decisions about short-run profitability to answer questions relating to your calculations. Jerry's Lock Shop is a perfectly competitive firm, and Jerry is operating at his level of output, which maximizes profit. He can change locks for 20 different customers per day and charges each customer $35 for each lock. His total cost of changing locks is $800 and his fixed cost is $160.
Answer the following questions. For each question, show the formula and the calculation as well as the final answer.
a. What is Jerry's marginal cost? Explain how you arrived at that answer.
b. Calculate Jerry's profit.
c. Advise Jerry regarding his short-run decision to produce.
d. Advise Jerry regarding his long-run decision to produce.

Reference no: EM13202273

Questions Cloud

Why don''t people rush to the bank and retrieve their money : Does the fact that your bank keeps only a fraction of your account balance in reserve make you uncomfortable Why don't people rush to the bank and retrieve their money What would happen if they did

How the inflation rate would affect the return : Explain your reasoning. Be sure to consider how the inflation rate would affect the return - A leader in your firm has been studying the foreign exchange market for a number of years and believes that she can predict several of the foreign currency..

By how much would v have to fall to offset : a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase.

Value for the hospitals investors : If interest rates rise over the next year, which bond will lose the most value and explain why the higher rated bond, Salt Lake City Revenue Bond, has a negative yield to maturity (YTM) - Discuss whether this project would add value for the hospital'..

Determine what is jerrys marginal cost : Given a numeric production schedule, you will calculate profit and make decisions about short-run profitability to answer questions relating to your calculations. Jerry's Lock Shop is a perfectly competitive firm, and Jerry is operating at his lev..

Why might a business owner keep the business open : A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolis..

Why might a parent company choose to franchise local outlets : Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.

Find the government spending multiplier : On the planet Omicron Persei 8, government spending is $1000, net taxes are $1200, and planned investment is $1400. Consumers spend according to the equation C = 100 + 0.8Yd, where Yd represents disposable income.

Is there sufficient evidence to refute this claim : The sample results were x= 357.5, s= 117.29. Logger working on the road claims the skidding distance is at least 400 meters. Is there sufficient evidence to refute this claim?

User Account

All Pages