User Account

All Pages

Shutdown price of operations for corporation

Assignment Help Microeconomics
Reference no: EM1366771

XYZ Corporation faces a horizontal demand curve and the market price is given to be $15.

Total variable cost equation for XYZ Corporation is equal to:

TVC = .25Q3 ââ?¬" 3Q2 +20Q

where Q is quantity in thousands

a) What key concept must be implemented if the firm wants to maximize profits in this market?

b) Which volume of output should XYZ Corporation produce if it wants to maximize profits? Explain why.

XYZ Corporation operates in a perfectly competitive market. The Corporationââ?¬â?¢s total costs are represented by the equation:

TVC = 20Q3 ââ?¬" 60Q2 +10Q

where Q is quantity and measured in thousands.

The objective of management is to determine below what price the company should shut down operations.

a) Calculate the shutdown price of operations for Corporation XYZ.

Reference no: EM1366771

Questions Cloud

Question on fundamentals of managerial finance : The Beasley Company has been experiencing declining earnings, but has just declared a 50% salary rise for its top executives. A dissident group of shareholder wants to oust the existing board of directors.
Rising cost of healthcare effect : How does the rising cost of healthcare effect each class of American society. What can Americans do to ensure that the climbing cost of healthcare remains affordable for everyone?
Different kinds of healthcare agencies : Describe the various kinds of healthcare agencies, and how they appear and are employed by members of popular networking sites.
Graphing the events of labor market : Describe the effect of each of the following events on the market for labor in the computer manufacturing industry. Use graphs.
Shutdown price of operations for corporation : XYZ Corporation faces a horizontal demand curve and the market price is given to be $15. Compute the shutdown price of operations for Corporation XYZ.
Calculate percentage of the founder family votes : Rust Pipe Corporation was established in 1985. Four years later the company went public. At that time, Robert Rust, the real owner, decided to establish 2-classes of stock. The 1st represents Class A founders' stock and is entitled to ten-votes each ..
Important information about website analysis : Choose a commercial Website, preferably one with which you are familiar, and prepare and present a slide presentation evaluating the characteristics
Determining labor unrest : You're in Management for IBX Steel Components. J. D. Brotsky is a top labor leader and just announced that her union will go on strike against management unless you grant the workers a significant pay raise.
Show the academic response to business management : Find a large company and identify who their preferred customer is and why you selected them

Reviews

Write a Review

Microeconomics Questions & Answers

  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..

  Analyzing transactions-financial statements

Explain how this transaction would be recorded in your firm's financial statements. Additionally, your hospital has experienced negative levels of net income for the last five years. The total amount of accumulated deficits is $5 million

  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.

  What is the socially optimal level of phosphorus emissions

How many units of phosphorus will these two firms emit if the phosphorus emissions are left unregulated? What is the socially optimal level of phosphorus emissions in the river?

  Firms operating under cournot competition or cournot market

The details about three identical firms operating in Cournot competition are given. The demand curve with marginal revenue, profit maximization, optimum quantity, total demand and market price related questions are answered.

  Management function and behaviour

What are the various methods of inventory valuation? Explain the effect of inventory valuation methods on profit during inflation. What are the provisions of Accounting Standard 2 (AS-2) with regards to inventory valuation?

  Supply and demand diagrams

Describe each of the subsequent using supply and demand diagrams.

  Swot of the franchise

you must identify a franchise that is relatively new (less than 10 years old and fewer than 25 locations in Canada).  You must then evaluate the attractiveness of the franchise for an identified location.  The evaluation should include: Presentation ..

  Development game “settlers of catan”

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

  Solution to the fundamental economic problem

Explain the effects of the new factory on the items below. Then place the number of each item on the circular-flow diagram to show whether the activity takes place in the product market or resource market

  Production possibilities frontier

Sketch a production possibilities curve (not a straight line), with consumer goods on the horizontal axis and capital goods on the vertical axis.

  Consummate-calculated risk

Describe an example of risk calculation found on the web and what risk calculation technique is illustrated by your example? Would you have employed a different risk assessment technique than used in your example, and why?

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