Total and marginal production costs

Assignment Help Business Economics
Reference no: EM131449601

Information text

Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets. The production manager of Bavarian Crystal Works estimates total and marginal production costs to be

TC = 10,000 + 40Q + 0.0025Q2

and

MC = 40 + 0.005Q

where costs are measured in U.S. dollars and Q is the number of wine decanters produced annually. Because Bavarian Crystal Works is only one of many crystal producers in the world market, it can sell as many of the decanters as it wishes for $70 apiece. Total and marginal revenue are

TR = 70Q

and

MR = 70

where revenues are measured in U.S. dollars and Q is annual decanter production.

Reference no: EM131449601

Questions Cloud

Write an essay on summarizing a book : This assignment is to summarizing a book OR write standard research paper from at least three books or articles.
How many people to survey : Poll results are prevalent in the media, especially leading up to elections, as are reports on surveys done by universities and research groups.
What is the largest component of gdp : What is the largest component of GDP? Given your answer, how do you think this component can be stimulated?
Examine core legal requirements affecting employee benefits : Examine the core legal requirements affecting employee benefits in today's competitive environment. Determine the legally mandated benefits that company offer.
Total and marginal production costs : The production manager of Bavarian Crystal Works estimates total and marginal production costs to be
Suggest two actions you can take in order to contribute : From the scenario and the e-Activity, suggest two actions you can take in order to contribute to high performance within your company.
What is job satisfaction : "Problem Definition" (min 2 pages) - DUE Friday 10 March. In this paper, you should define a problem in your organization.
Discuss about historical and current trends in development : Nature of geographic, gender, social, cognitive, emotional, and developmental factors during each period of development.Developmental factors that impact one.
Explore the society of human resource management website : Explore the Society of Human Resource Management website http://www.shrm.org/pages/default.aspx, explain the importance of receiving a student membership.

Reviews

Write a Review

Business Economics Questions & Answers

  Other theme s prices their theme park tickets

Your job is to find out as much as possible about how (or could) Disney or other theme park’s prices their theme park tickets, options and discounts, i.e., what pricing models do they use? (Timesaver: Disney is not going to tell you.) How does Disney..

  Explain how could we best categorize the remaining

Imagine that last year, Jennifer earned $80,000 in salary, and consumed $50,000 in goods and $23,000 in services. How could we best categorize the remaining $7,000.

  Flexible exchange rate that fiscal policy

Use the Mundell-Fleming model to show for a small country with a flexible exchange rate that fiscal policy becomes less effective as international capital mobility increases.

  Example testing rationality of assessments of housing price

Wooldridge Problem 4.6 In section 4.5, we used as an example testing the rationality of assessments of housing prices. There, we used a log-log model in price and assess [see equation (4.47)]. Here, we use a level-level formulation. i. In the simple ..

  The kinds of money

Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. Until 2003, the year in which the U.S. government banned smoking in federal penitentiaries, cigarettes were the preferr..

  How is it possible for both to have increased.

there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased.

  Illustrate what would be profit maximizing level of output

Suppose the managers of the two firms decide to collude. If they formed a cartel, illustrate what would be the profit maximizing level of output.

  Purpose in writing autobiography

What is Rousseau's purpose in writing an autobiography? Why is truth-telling so important to him ? What does Rousseau consider best about himself, what does he praise himself for or feel good about? What does Rousseau consider worst about himself: wh..

  Determine the average time customer spends in the system

Suppose we know that the average number of customers present in a queuing system is 10 and the average number of customers waiting in line is 4. Given that the average number of arrivals entering the system per hour is 20, determine the average time ..

  Used by firm in the production of certain product

In the short run, labor is the only variable factor used by a firm in the production of a certain product. The manager of the firm has estimated that the marginal product of labor is given by MPL = 160/√L. The wage per unit of labor is w = $24, and e..

  Costs of production-fixed costs and variable costs

Firm incurs two types of costs of production: fixed costs and variable costs. Can you name an industry where the fixed costs are relatively high compared to the variable costs? Can you name another where the variable costs are relatively high compare..

  Imply a market supplied by a small number of large firms

Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, one internet business such as grocery home deliveries have continually suff..

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