User Account

All Pages

Is formula for determining correct level of output mr

Assignment Help Microeconomics
Reference no: EM13395517

A cupcake store is located in a mall and is the only cupcake store in that mall.  The demand schedule for cupcakes (per dozen) is given in the table below.  If the marginal cost to produce a dozen cupcakes is $4 per unit, how many units should the firm produce? 

Price

Quantity Purchased

 

   (Dozen per day)

 $12

     3

 

 $11

     7

 

 $10

    12

 

 $9

    20

 

 $8

    35

 

 $7

    60

 

 $6

   100

 

 $5

   160

 

 $4

   250

 
  1. What price should the cupcake store charge? 
  2. If the fixed cost for the firm is $100 per day, how much profit will the firm make in one day? 
  3. What is the price elasticity of demand at the optimal price/quantity combination (use the next lower price level as the second point in your calculation)? 
  4. Is the formula for finding the correct level of output (MR greater than MC means that (P-MC)/P is greater than 1/lel) is satisfied?

Reference no: EM13395517

Questions Cloud

Drwins theory of evolution was made around three central : darwins theory of evolution was developed around three central principles the principle of variation the principle of
Explain the relationship between extensive limited and : 1.explain the relationship between extensive limited and routine decision making relative to high- and lowinvolvement
Find out the initial investment in fixed assets supposing : general food is considering building a new plant in denver colorado. the company currently owns some land in denver
Examine the role of management as it relates to finance in : examine the role of management as it relates to finance in a corporation.nbsp in your post discuss the role of
Is formula for determining correct level of output mr : a cupcake store is located in a mall and is the only cupcake store in that mall.nbsp the demand schedule for cupcakes
Begin by researching an online consumer product or service : every product or service has a buying process even digital products and services. in this assignment you will research
Construct a hedge strategy of a bond portfolio for a : construct a hedge strategy of a bond portfolio for a company of your choice. select a publically traded company and
Determine the causative agent of the disease is it a : what is the causative agent of the disease? is it a bacterium a virus a prion or a eukaryote?1. if it is a bacterium
Assume that two countries engage in free trade recognize : suppose that the u.s and japan are two ricardian economies. both countries can produce only two goods automobiles and

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd