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Q. Auto Company comprises small plant that produces speedometers exclusively. Its yearly fixed expenses are $30,000, and its variable costs are $10 per unit. It can sell a speedometer for $25.
a. How many speedometers sell to break even?
b. What is the break-even revenue?
c. The company sold 3,000 units last year. Elucidate the profit?
d. Next year's fixed costs are expected to rise to $37,500. Elucidate what will be quantity of break-even?
e. If the company will sell the number of units obtained in part d and wants to maintain the same profit as last year, what will its new price have to be?
If the objective is to increase total revenue, should the price be increased or decreased, Explain.
Illustrate what is the maximum profit. Suppose that the fixed cost rises to $200,000. How would this affect the profit-maximizing price.
Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.
q.for each level of output calculate the variable cost vc. for each level of output except zero output calculate the
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q.a new production technology for making vitamins is invented by a college professor who decides not to patent it. thus
Ben bakes bread and Shawna knits sweaters. Ben and Shawna both like to eat bread and wear sweaters. In which of the following cases is it impossible for both Ben and Shawna to benefit from trade.
Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
What is the effective rate of protection for the automobile industry in country A, if there is a tariff of 25 percent on imported automobiles and a tariff of 50 percent on imported inputs used in this industry.
Suppose that the income tax in a certain nation is computed as a flat rate of 5 percent, but no tax is levied above $50,000 in taxable income.
q1. suppose the parliament passes legislation making it more difficult for firms to fire workers e.g. law requiring
Conclude how the abatement levels should be reallocated across the 2 industries to minimize costs.
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