Profit-maximizing output-price and profit of pick industries

Assignment Help Business Economics
Reference no: EM131099861

Pick Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of the plastic it uses to produce toothpicks fell by 46 percent, due to a local glut of recycled plastic containers. Assuming that the market for plastic toothpicks most closely resembles that of perfect competition and that other firms in the industry do not experience similar cost savings in the short run, what impact would this have on the profit-maximizing output, price, and profits of Pick Industries?

Reference no: EM131099861

Questions Cloud

Thematic study of literature and music : How do you suppose that a thematic study of literature, music, and art might enable a person to become a well rounded and well educated leader in his/her own realm of influence and help him/her to relate to his/her public and private life?
What is expected future wealth : Suppose John now has W = $4900 and foresees that there is 50% chance encountering a big loss of $4800 in the future. Assuming that John's preference can be described by the utility: U ( W ) = sqrootW. What is John's expected future wealth? What is Jo..
Is this firm in the long run or in the short run : A firm’s cost function is C = 5Q + 0.1Q^2. Suppose the market price is $10. How many units will be produced by this firm to maximize its profit? Is this firm in the long run or in the short run? What is the lowest price at which the firm will produce..
Uncharacteristically well-behaved moment : Jack is looking to replace the recently sunk Black Pearl. In an uncharacteristically well-behaved moment, he considers buying a new ship with his pirate's hoard of gold. But which to buy? The Retribution costs $7,000 and should last three years, wher..
Profit-maximizing output-price and profit of pick industries : Pick Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of the plastic it uses to produce toothpicks fell by 46 percent, due to a local glut of recycled plastic containers. what im..
Firms have short-run supply curve with slope : An industry has 1000 competitive firms, each producing 50 tons of output. At the current market price of $5, half of the firms have a short-run supply curve with a slope (change in quantity/change in price) of 1; the other half each have a short-run ..
Teleconference call to shareholders : "In a recent 'earnings call,' a teleconference call to shareholders in which the CEO reports and discusses quarterly earnings per share, Coca-Cola's CEO Muhtar Kent bragged about 'winning' market share from rival beverage company PepsiCo. The pursuit..
Capitalism and market-determined services : Social Security and Medicare are clear examples of: a. capitalism. b. market-determined services. c. market failures and externalities. d. governmental intervention in the market. "Second-hand" smoke, an often cited disadvantage of allowing smoking i..
One characteristic of oligopoly market : One characteristic of a Oligopoly Market is that many sellers serve the entire market. A firm in a Monopolistic Competitive Market has no power over its on price. If a large numbers of firms are competing, then the market could be perfect competition..

Reviews

Write a Review

Business Economics Questions & Answers

  In the aftermath of the global economic crisis

In the aftermath of the global economic crisis that started to take hold in 2008, U.S. government budget deficits increased dramatically, yet interest rates on U.S. Treasury debt fell sharply and stayed low for quite some time. Does this make sense? ..

  Major reasons for government involvement in a market economy

Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.

  Determine the strategy that each firm should choose

In the absence of a binding and enforceable agreement, determine the dominant strategy for AMC. c. Determine the dominant strategy for SAMI. d. If the two firms can enter into a binding and enforceable agreement, determine the strategy that each fi..

  Which computer software package should the firm human

Which computer software package should the firm's human resources office use to manage the payroll?

  Suppose tax cut affected aggregate demand-aggregate supply

Suppose a tax cut affected aggregate demand and aggregate supply. The shift in aggregate supply would make the

  Original one in terms of equilibrium price and quantity

Draw a demand-supply graph and label the aces with the price and quantity of khaki pants for each scenario below. Does this event increase or decrease demand and/or supply? Find the new equilibrium and compare it with the original one in terms of equ..

  Describe the different kinds of inflation

From a Producer’s point of view, describe the different kinds of Inflation, explaining how each can affect an overall economy in the short term and also the long term and specifically how you (the producer) would be affected in each case.

  Monopoly pricing power in the market faces

If a firm with monopoly pricing power in the market faces a demand curve of P = 2,000 – 2Q and seeks to maximize profit, what would be the marginal revenue for the monopolist

  Explain residual plot where you find any problem

Plot residual by time and explain residual plot where you find any problem. Do we violate any 7 assumptions of OLS. If so, what are consequences.

  Justifies reason why firm might prefer licensing to FDI

Which of the following justifies the reason why a firm might prefer licensing to FDI?

  What proportion of total variation in q is explained

Can you reject the null hypothesis that income does not affect quantity demanded? What proportion of total variation in Q is explained by the regression equation?

  Consumption goods and time spent on leisure

Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..

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!

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