How the level of fixed cost affects the choice of output

Reference no: EM131248615

A firm sells a product in a perfectly competitive market, at a price of $50. The firm has a fixed cost of $30. Fill in the following table and indicate the level of output that maximizes profit. How would the profit-maximizing choice of output change if the fixed cost increased from $40 to $60? More generally, explain how the level of fixed cost affects the choice of output.

Reference no: EM131248615

Questions Cloud

Global financial and economic crisis on hrm practices : Critically assess the impact of the 2008 global financial and economic crisis on HRM practices in organizations. The assignment question reflects some core themes addressed during the ABP HRM module. The aim of the assignment is to encourage students..

Find the shortest path from node a : Dijkstra example:- For the network of given figure, find the shortest path from node A to every other node using Dijkstra's algorithm.

Develop a strong team with solid expectations : Create and develop a strong team with solid expectations: - I need to create a team atmosphere within my team with a sense on mission. I need to share my vision of what the organization can be, so that the team have a common purpose. Before I begi..

Find effects that organizations environmental awareness has : Determine the major effects that an organization's environmental awareness has on its sustainability. Recommend one approach that HR can take to use an organization's environmental awareness in order to attract and retain top talent.

How the level of fixed cost affects the choice of output : How would the profit-maximizing choice of output change if the fixed cost increased from $40 to $60? More generally, explain how the level of fixed cost affects the choice of output.

Compare and contrast pre-war and post-war experiences : What changed because of the movement from isolationism to expansionism? Assess the relevance of people's concerns about the war's impact on the international community. Assess the war's economic impact, including the expansion of factories (big busin..

Find the shortest path from node a to node c : What is the throughput of CSMA in the limiting cases a → 0 and G → ∞? (Bellman-Ford) For the network of figure find the shortest path from node A to node C using the Bellman-Ford algorithm.

What must he sell there to meet his quota : Jim sells college textbooks. To date Jim has sold $141,002 worth of textbooks. His sales quota is $194,159. Tomorrow he expects to sell $15,005 worth of textbooks to B College. His last stop will be Munroe College. What must he sell there to meet ..

Describe the wolfs role in its ecosystem : For your discuss, begin your post by describing the wolf's role in its ecosystem. Next, identify two different stakeholders (a person who has an interest or concern) in this issue.

User Account

All Pages