What is her break-even level of output

Assignment Help Econometrics
Reference no: EM131072384

Wendy's Window Cleaning is a small local operation. Winnie presently cleans the outside windows in her neighbours' houses for $36 per house. She does ten houses per day. She is incurring total costs of $420, and of this amount $100 is fixed. The cost per house is constant.

(a) What is the marginal cost associated with cleaning the windows of one house - we know it is constant?

(b) At a price of $36, what is her break-even level of output (number of houses)?

(c) If the fixed cost is ‘sunk' and she cannot increase her output in the short run, should she shut down?

Reference no: EM131072384

Questions Cloud

Butterfly spread strategy-calculate the rate of return : First, create a butterfly spread strategy using these options. (1) $190 call priced at $13.07 , (2) $200 call priced at $10.15 and (3) $210 call priced at $8.19. Calculate the rate of return (in %), when the underlying stock price becomes $200. (marg..
Draw the market demand curve faced by this monopolist : Draw the market demand curve faced by this monopolist.
Determine optimal level of short term financing : ATL Constructions is trying to determine the optimal level of short term financing for its working capital requirement. You are asked to provide an analysis on the three key factors that the company should consider in selecting different sources of s..
Implements the conclusion of the analysis : Modify the model so that product occurs Monday through Friday at the current rate and Saturday at half the current rate. This implements the conclusion of the analysis that 5.5 days per week production on the average is sufficient.
What is her break-even level of output : If the fixed cost is ‘sunk' and she cannot increase her output in the short run, should she shut down?
Manufacture new energy saving device : ELC Electrical Services is considering the construction of a plant to manufacture a new energy saving device for small offices. It estimated that 30,000 units of its new product could be sold annually over the next 10 years at a price of $10,000 each..
Evaluate the manager based on portfolio alpha : During a particular year, the Treasury note rate was 3.25%, the market return was 7% and a portfolio manager with beta of 0.5 realised a return of 8%. Evaluate the manager based on portfolio alpha.
How many vacuums must she sell in order to cover total cost : How many vacuums must she sell in order to cover her total costs?
Mutual fund at the beginning of year : You invested $100,000 in a mutual fund at the beginning of the year when the NAV was $40.13. At the end of the year the fund paid $.42 in short-term distributions and $.59 in long-term distributions. If the NAV of the fund at the end of the year was ..

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

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