Illustrate what should be the production level

Assignment Help Business Economics

Reference no: EM1361748

A software producer has fixed costs of $30,000 per month and her Total Variable Costs (TVC) as a function of output Q are given below:

Q TVC Price
3,000 $ 5,000 $5
13,000 15,000 4
23,000 28,000 3
33,000 42,000 2
43,000 70,000 1

(a.) If software can only be produced in the quantities above, what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity is also listed above? Why? (Show all work).

(b.) Illustrate what should be the production level if fixed costs rose to $50,000 per month? Explain.

Reference no: EM1361748

Questions Cloud

Effect of stimulant drugs : Find at least two peer-reviewed journal articles that explain the effect of stimulant drugs (such as Adderall or Ritalin-amphetamine or methylphenidate) on the brains of those with ADHD.

Write implementation of counter class : Write the implementation (.cpp file) of the Counter class. Here is the full specification of the class: A data member counter of type int.

Radio-frequency identification technologies : Prepare two new products using RFID that can help you reduce expenses, increase profits, and create a competitive advantage for your business.

Calculate trade and cash discounts : Use the Library to go to the SBA US Government, Small Business Administration web site. There is a vast amount of information available on this site.

Illustrate what should be the production level : Illustrate what should be the production level if fixed costs rose to $50,000 per month. Explain.

Explain the problem using graphical linear programing : Explain and Solve the problem using graphical linear programming and answer the question and use simultaneous equations to determine the optimal values of the decision variables.

Change in amphetamine : Examine the change in amphetamine use and abuse in the U.S. from the 1950s to the present.

Decision under uncertainty - bayes theorem : Include appropriate probability concepts and your application to find resulting data to limit uncertainty in this decision and identify each outcome from your statistical analysis, providing rationale for each

Determine dollar return : Suppose that IBM stock is selling for $110 per share and that you short sell 200 shares of the stock determine your dollar return if the price of IBM stock drops to $95 per share?

User Account

All Pages