Using spreadsheet graph average total cost and marginal

Reference no: EM13392225

Suppose that it costs Microsoft $100to develop a new version of Microsoft office, and that it costs Microsoft $20 to produce each copy of the new program (by burning it onto a DVD). Finally, assume market demand for Microsoft Office is given by the following table:

MS Office	MU
1	80
2	70
3	60
4	50
5	40
6	30
7	20
8	10

a. Using a spreadsheet, graph the average total cost and marginal cost of producing 1 to 8 copies of MS office.

b. What is Microsoft's profit or loss if it sells Office at its marginal cost?

c. Luckily for Microsoft it is a monopolist. Graph the demand and marginal revenue curves along with the cost curves. As a monopolist, how many copies of Office will Microsoft produce? What will be the price? And how much will it earn in profits?

Reference no: EM13392225

Questions Cloud

Identify any considerations you will need to employ to : select a current product with which you are familiar and pitch a new integratedmarketing communication plan imc to your

The accumulation of accounting data on the basis of the : 1. how firms estimate their cost of capital the wacc for a firm is 13.00 percent. you know that the firmrsquos cost of

Which of the following belong in the current assets section : which of the following belong in the current assets section of the balance sheet?a. cashb. short term investmentsc.

Assume yourself to be the customer construct a house of : 3- to 4-page microsoft word documentimagining yourself to be the customer construct a house of quality to provide the

Using spreadsheet graph average total cost and marginal : suppose that it costs microsoft 100to develop a new version of microsoft office and that it costs microsoft 20 to

Which of the following are principles of internal : which of the following are principles of internal control?a. having a yearly audit by an independent auditing firmb.

Describe the procedural steps in which accountants or : identify at least three 3 risk factors inherent in estimating the amount of customer write-offs. explain the procedural

Sketch hypothetical supply and demand graphs for : suppose there are two occupations rap musicians and country musicians.a. draw hypothetical supply and demand graphs for

Why has the provider of choice shifted from rail to motor : why has the provider of choice shifted from rail to motor modes? with the shift to motor freight carriers the amount of

User Account

All Pages