User Account

All Pages

Label the point of profit maximization

Assignment Help Business Economics
Reference no: EM132502880

1. Now let's say Sarah's fishery faces the following revenues and costs. Market price is $25, to maximize profit she farms 200 fish a week. At the profit maximizing quantity, Average Total Cost = $20 a fish, Average Variable Cost = $15 a fish. The AVC min = $12 a fish.

A - Label the point of profit maximization.

B - On the graph, label Sarah's Supply Curve

C - Draw in the ATC curve that shows ATC = 20 at the profit maximizing level of output.

D - At profit maximization, what is the total revenue, total cost, variable cost, and profit?

E - If the price of salmon falls to $20 per fish, will Sarah continue to produce 200 salmon? Explain why or why not? Illustrate this price change on the graph.

F - If the price of salmon falls to $14 a fish, what will Sarah do (stay in business or shutdown)? Fully explain why, not just the rule? Also prove this mathematically.

Reference no: EM132502880

Questions Cloud

Review options available for managing foreign currency : Review the options available for managing this foreign currency liability. And is there any reason to prefer one course of action over another for the following
Consumers prefer the supermarket : Supporters of the plan argue in turn that this will only happen if consumers prefer the supermarket. Which side are you on?
What is balance of accounts receivable for whitewater rental : Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
Prepare journal entries that Smart Solutions Inc record : Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. Dec. 31 Accrued interest on the note
Label the point of profit maximization : Now let's say Sarah's fishery faces the following revenues and costs. Market price is $25, to maximize profit she farms 200 fish a week. At the profit maximizin
Production of computers and fax machines : If Country M opens trade with a country with identical tastes, what will happen in the short run to:
Calculate the current and long-term liabilities : Payment will be made over four years in four equal annual installments. Calculate the current and long-term liabilities as at December
What would be the year net operating income : If the sales manager is right, what would be this year's net operating income if his ideas are implemented? The sales manager is convinced that a 11%
What is the difference in net present values : What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment

Reviews

Write a Review

Business Economics Questions & Answers

  Demand model of the world tea market

Consider the following supply and demand model of the world tea market (in billions of pounds.)

  Decrease in productivity in country will cause

A decrease in productivity in a country will cause its currency to ________ because it produces goods at a ________ price, everything else held constant.

  As the price of adidas basketball decreased

As the price of Adidas basketball decreased, Kobe bought additional Adidas basketballs and less Nike basketballs. Which of the following expressions clarifies Kobe's decision to purchase more of Adidas basketball?

  Illustrate what is the relationship between the phillips

Illustrate what is the relationship between the Phillips curve, cumulative demand also cumulative provide.

  What is meant by the social construction of categories

What is meant by the "social construction of categories"? In what ways are concepts such as gender, race, sexual orientation, social class, and exceptionality social categories?

  What is the book value of the machine at eoy 3

A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4700 to install.

  Welfare effects of per unit tax

Solve for the change in consumer surplus, the change in producer surplus, the change in government revenue and change in total surplus (i.e. the deadweight loss) from the market without the tax.

  Consider that two countries brazil and argentina have the

consider that two countries brazil and argentina have the same rates of investment population growth and depreciation.

  Based on maximization of a single objective

Explain briefly the conceptual difference between choice based on maximization of a single objective versus choice based on maximization of multiple objectives. Give a specific example of where a decision maker is making a choice with multiple object..

  What term do economists use to describe this second outcome

If the CPI was 110 last year and is 116 this year, what is this year’s rate of inflation? What term do economists use to describe this second outcome? Inflation/deflation

  The mayor of new monopoly realizes

The mayor of new monopoly realizes that the congestion at the port cost the shipping companies and his town money. Which decision would not move him towards a command economy?

  Discuss the foreign exchange market

Research and discuss the foreign exchange market in terms of both the value of the currency over time and any regulations affecting the currency for China in 2016.

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