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Mark, Cherry and Eric Jones jointly patented a method for manufacturing Adam Smith bobble head dolls. The plan is for a very limited production run. They investigate the potential market for this unique novelty and find their sales and total cost schedules to be as follows: (The costs include a licensing fee to the estate of Adam Smith)
Sales Unit Price Total Cost? 0 200 140? 1 180 170? 2 160 200? 3 140 220? 4 120 250? 5 100 300? 6 80 380
A) Computetheir TR, MR, ATC, MC and profit/loss schedules
B) Find out the equilibrium price, equilibrium output, unit profit, and total profit at the equilibrium point for these ingenious entrepreneurs.
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The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 250 –l0P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producer..
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