What is luigi shut-down point

Assignment Help Business Economics
Reference no: EM133078450

Luigi's Calzone is a price taker. Its costs are

Output (Plates per  day)

Total Cost

0

0

1

28

2

38

3

51

4

70

5

91

6

130

A. What is Luigi's shut-down point?

B. What is the profit maximizing quantity and economic profit if the price is $21 a plate?

C. We are assuming that the above total cost is the total variable cost. Now, suppose that we introduce a fixed cost equal to 10. Redo Question A to compute the price at which the firm will break even

Reference no: EM133078450

Questions Cloud

Find the equilibrium provision of the public good : Suppose Adam(A) and Beth(B) live on either side of a flower garden that they own in common (public good for both). Their private marginal benefits (MWTPs) are g
Explain economic principles and their applications : Explain economic principles and their applications in the real world - Describe one way the government might impact this industry. Examples might include price
Economic development of one country : Critically evaluate how the following factors may affect the economic development of one country.
What is the corrected balance of net income : The omitted adjustment was debit Unearned Rent and credit Rent Revenue of P7,500. What is the corrected balance of Net Income
What is luigi shut-down point : B. What is the profit maximizing quantity and economic profit if the price is $21 a plate?
What the estimated cash payback period for the machine : An annual net cash inflow of $90,000, and annual operating income of $76,500. What the estimated cash payback period for the machine
Calculate estimated cash payments in October and November : Purchases for August and September 2021 were $850,000 and $720,000 respectively. Calculate estimated cash payments in October and November
Briefly explain the purpose of the constitution : Briefly explain the purpose of the Constitution. Use relevant and factual information in your explanation - definition of each ideal
Calculate operating profits for container : Calculate operating profits for Container, Mixing and Amazon Beverages for volumes of 500,000, 1,000,000 and 1,500,000 cases

Reviews

Write a Review

Business Economics Questions & Answers

  Current consumption bundle is strictly

The absolute value of Mars’ MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.

  Encouraging the consumption of healthy food

c) Is the government going to be successful in encouraging the consumption of healthy food? Briefly explain.

  What are the basic economics of the healthcare industry

What are the basic economics of the healthcare industry? Using the concepts of product versus resource, and each of the four types of resources.

  What is the maximum price the firm is willing to pay

The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?

  Construct the payoff table

Does either firm have a dominant strategy? Dominated? Is there a stable equilibrium?

  What is market power and define market power

What is market power? Define market power, name a few sources of market power, and explain why market power is always a source of market inefficiency.

  Particular competitive market-private marginal cost

In a particular competitive market, the sellers have private marginal cost (PMC) equal to 2.5 at every output level. The demand curve has the equation P = 52.5 − (5Q/2), where Q ≤ 21 is the quantity bought at price P ≤ 52.5. Find the competitive equi..

  Assumptions about human nature and natural laws

Compare and contrast how discussions/assumptions about human nature and natural laws show up in the writings of Smith, Malthus and Ricardo

  Construct a response to the federal reserve actions aimed

Construct a response to the Federal Reserve actions aimed at lowering long-term interest rates

  Households preferences are represented by utility function

Suppose that the household’s preferences are represented by the utility function U(C0, C1)= 100C0^ 0.5 C1^0.25. If the real interest rate is 5 percent, what is the value of the MRS of this household when it has maximized its two-period welfare?

  Equlibrium level of aggregate income in an economy

If equlibrium level of aggregate income in an economy is $250 billion while full-employment level of income is $450 billion, and if the value of MPC is 0.60, then additional investment needed to reach the full-employment level of income $____________..

  What is the rate of interest if compunded monthly

A service car whose cash price was P785,000 was bought with a down payment of P157,000 and a monthly of P13,245.59 for 5 years. What is the rate of interest if

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