Elucidate the marginal cost of a string

Assignment Help Business Economics

Reference no: EM1344531

The licorice industry is competitive. Each firm produces 2 million strings of licorice per year. The strings have an average total cost of $0.20 each, and they sell for $0.30.

a. Elucidate the marginal cost of a string?

b. Compute marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2 1/2.) At what quantity do these curves cross? How does this relate to your answer to part (a)?

c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?

Reference no: EM1344531

Questions Cloud

Explain what is etcs value : Explain what is the value of ETC according to MM with corporate taxes and What is ETC's value

Defining method dashedline with one parameter : Write a definition of method dashedLine, with one parameter, an int .

At what speed will the cart travel : Two automobiles of equal mass approach an intersection. One vehicle is travelling with velocity 13 m/s toward the east and the other is travelling north with speed v2i. Neither driver sees the other.

Find the break even annual income : Company is buying new equipment for $120,000. You estimate life of this machine is 6 years and you will depreciate it in a straight line over 5 years to be conservative and suppose no terminal value.

Elucidate the marginal cost of a string : Elucidate the marginal cost of a string. Compute marginal revenue and marginal cost for each quantity.

How to produce two high energy photons : A positron is a particle of "antimatter"; it has the same mass as an electron (9e-31 kg), but its charge is positive instead of negative. At research facilities such as Cornell Electron Positron Storage Ring at Cornell University in New York, high..

Explain what is the operating cash flow : Explain what is the Operating Cash Flow and Show your calculations

Explain the economic exposure to the eur : Explain the economic exposure to the EUR from the perspective of the Tunisian JV partner and provide one recommendation how the French company could hedge its exposure to the TND.

What is the specific heat of the metal : A 25kg solid door is 220cm tall, 91cm wide. What is the door's moment of inertia for rotation about a vertical axis inside the door, 15cm from one edge.

User Account

All Pages