What is the companys fixed cost

Assignment Help Econometrics

Reference no: EM13180944

The following data are collected for a computer manufacturer company:

Quantity Price per unit Total cost of production

0 $225,000 $200,000

1 225,000 250,000

2 175,000 275,000

3 150,000 325,000

4 125,000 400,000

5 90,000 500,000

a) If output rises from 2 to 3 units, what is the marginal revenue?

b) If output rises from 4 to 5 units, what is the marginal cost?

c) What is the company's fixed cost?

d) How many units should be produced to maximize total revenue?

e) How many units should be produced to maximize profit?

f) How do this company's marginal costs behave as output increases?

g) Provide a logical explanation as to why a computer manufacturer's marginal costs might behave in this way.

Reference no: EM13180944

Questions Cloud

Which car is the better buy : If you plan to drive the new car for 120,000 miles over the next 10 years, which car is the better buy? Use mathematical reasoning to justify your responses.

Reading disabilities and dyslexia-dyscalculia-dysgraphia : Reading Disabilities and Dyslexia, Dyscalculia, Dysgraphia, Do you think all learning difficulties are associated with learning disabilities? Why, or why not?

Explain the long-run aggregate supply curve : A decrease in government spending will cause a(n) increase in the quantity of real domestic output demanded. decrease in the quantity of real domestic output demanded. decrease in aggregate demand. increase in aggregate demand.

child physical development : Does child psychological development follow the same path as child physical development? Include citations from at least two scholarly sources to support your discussion.

What is the companys fixed cost : How many units should be produced to maximize profit? How do this company's marginal costs behave as output increases? Provide a logical explanation as to why a computer manufacturer's marginal costs might behave in this way.

Advanced business analysis and design essay : Discuss the advantages and disadvantages of meeting system requirements with packaged software and discuss the problems with subjective approaches to evaluation of software packages during software acquisition

Volcanoes typify and rates of tectonic plate motion : Volcanoes typify all of the following tectonic settings EXCEPT . Over the past 600 million years, the rates of tectonic plate motion have been relatively slow, but the direct results have

What would the optimal production subsidy be : Calculate the total effect on welfare of a tariff of 5 per unit levied on imports. Calculate the total effect of a production subsidy of 5 per unit. Why does the production subsidy produce a greater gain in welfare than the tariff? What would the opt..

Explain impact on decline in oil prices on us equity market : Since Fall of 2012, the price of oil has shown a steady decline as continued increase of global oil production that has far exceeded the rising demand for oil. Accordingly, many analysts in the energy field have had predicted the likelihood of fur..

User Account

All Pages