Explain what is maxs most profitable course of action

Assignment Help Macroeconomics

Reference no: EM13235105

Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with material, labor and foremen to meet the demand for housing. Last year, Max built and sold 40 ‘starter homes', the most popular model. With a recent recession over, Max thinks that his sales will increase to 50 units for the current year. The going market price for this model (which Max and his numerous competitors have charged) has been $75,000. In addition, Whiteley Construction's marginal cost of building this model averages $55,000. Based on these facts, suggest a course of action for Max. Suppose the economic boom raises the cost of labor and raw materials, so that the additional cost of a starter house raises to $65,000. What is Max's most profitable course of action?

Reference no: EM13235105

Questions Cloud

Define what mass of solid sodium fluoride : What mass of solid sodium fluoride (molar mass = 41.99 g/mol) should be added to 1.0 L of 0.23M hydrofluoric acid to make a buffer with a pH of 2.94? (Ka of HF = 1.36 x 10-3)

What is joshs bonus if the companys marr is given : Josh Ritchey has just been hired as a cost engineer by a large airlines company. Josh's first idea is to quit giving complimentary cocktails, wine, and beer to the international flying public. He calculates this will save 5,000,000 drinks

Define what is the ph of a solution made : What is the pH of a solution made by adding 8.80 grams of Sodium Acetate to 450mL of .105 M hydrochloric acid?(Assume no change in volume takes place)

Define what mass of solid sodium hypochlorite : What mass of solid sodium hypochlorite (molar mass = 74.44 g/mol) should be added to 1.0 L of 0.255M hypochlorous acid to make a buffer with a pH of 7.54? (Ka of HClO = 3.8 x 10-8)

Explain what is maxs most profitable course of action : Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end.

Find the angular speed of the bar : A thin, uniform, metal bar, 3m long and weighing80N , is hanging vertically from the ceiling by a frictionless pivot, Find the angular speed of the bar just after the collision

Evaluate the expectation value for the kinetic energy : Calculate the expectation value for the kinetic energy of the H atom with the electron in 2s orbital. Compare your result with total energy

Should the firm continue to produce in the short run : a. Warner is selling in a perfectly competitive market at a price of $40. What is the profit maximizing or loss-minimizing output b. Calculate the firm's profit or loss. Show computation. c. Should the firm continue to produce in the short run

State molar solubility increases if the solution is acidic : Silver phosphate, Ag3PO4 has a certain molar solubility in otherwise pure water, but that the molar solubility increases if the solution is made acidic. However, AgCl is NOT more soluble in acid, than it is in neutral solution. How does this happe..

User Account

All Pages