Estimated costs functions to make productions decisions

Assignment Help Business Economics

Reference no: EM13898307

In 1796, Gottfried Christoph Hartel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated costs functions to make productions decisions. Hartel figured that the fixed cost of printing a musical page - the cost of engraving the plates was 900 pfenninfgs. The marginal cost of each additional copy of the page was 5 pfennings.

a) Graph the total cost, average total cost, average variable cost, and marginal cost functions

b) is there a cost advantage to having only one music publisher print a given composition? Why?

c) Hartel used his data to do the following type of analysis: Suppose he expected to sell exactly 300 copies of a composition at 15 pfennings per page. What is the highest price the publisher would be willing to pay the composer per page of the composition if he wants to least break even?

Reference no: EM13898307

Questions Cloud

What would be its equilibrium profit : A monopolistic firm faces the following demand curve. Q = 7800 -12 P This monopoly's cost function has been estimated as follows: TC = 460,000 + 50 Q. What price should this monopoly charge to maximize its profit? What would be its equilibrium profit..

Find the optimal ratio of leisure to consumption : Adam Sandler has a utility function U(C, L) = C1/3L1/2. The wages now available to him are $9/hr. Non-wage income in royalties are $6 a day. Find the MRS for Leisure to Consumption to find the optimal ratio of Leisure to Consumption. Write out and dr..

The utility function of worker is represented : The utility function of a worker is represented by U(C,L) = C×L. Suppose this person currently has 100 hours of leisure and $1200 in consumption in a given time period. What must the worker’s hourly wage rate be if she is maximizing her utility?

Draw her annual budget constraint : A person can choose to work any amount from 0 to 52 weeks per year at a wage of $1000 per week. Draw her annual budget constraint, representing total annual consumption versus annual weeks of leisure.

Estimated costs functions to make productions decisions : In 1796, Gottfried Christoph Hartel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated costs functions to make productions decisions.

Economic indicators-events that resulted in this loss : Choosing a long position on the USD/CHF (Us dollar/Swiss Franc) resulted in a loss over the past month. What in the past 2 months (September/October) could have been economic indicators/events that resulted in this loss? What would be any factors tha..

Given the market for corn in equilibrium : Given the market for corn in equilibrium, show the effect on price and quantity of the following simultaneous occurrences: Good weather results in a 10% increase in the harvest of corn. A medical report is published that concludes that consumption of..

Backward bending then leisure is an inferior good : If an individual’s labor supply curve is backward bending then leisure is an inferior good (i.e., a backward bending supply curve means downward sloping for some values of the wage).

Short run marginal and average variable cost curves : A U.S. Chemical firm has a production function of q= 10L^(.32) K ^ .56. It faces factor prices of w= 10 and r = 20. What are its short run marginal and average variable cost curves?

User Account

All Pages