User Account

All Pages

What is the shop average total cost of a shirt

Assignment Help Business Economics
Reference no: EM132461047

Avant-garde fashion designer Yohji Yamamoto faces a total fixed cost of $2,000 a day for running his shop in Tokyo. Mr. Yamamoto's marginal cost of a shirt $100, and the profit maximizing number of shirts sold in this shop is 20 a day. Then the ships nearby from other designers start advertising their shirts. Mr. Yamamoto's shop decides to spend $2,000 a day advertising its shirts, and its profit maximizing number of shirts sold jumps to 50 a day.

i) What is the shop's average total cost of a shirt sold after the advertising begins?

ii) What is the shop's average total cost of a shirt sold before the advertising begins?

iii) Before advertising: Suppose that the price elasticity of demand is 2. Can you say what happens to the price of the Yamamoto shirt? What happens to the markup? Compute the amount of maximal profits.

iv) After advertising: Suppose that the price elasticity of demand of equals 4. Can you say what happens to Yamamoto's economic profit?

Reference no: EM132461047

Questions Cloud

Determine equilibrium price-quantity-consumer : In the competitive coffee bean market, determine equilibrium price, quantity, consumer and producer surpluses.
Developing billing guidelines for patient financial services : How are third-party policies used when developing billing guidelines for patient financial services (PFS) personnel and administration when determining
Record the adjusting entry necessary abt associates pays : Between January 1 and January 3, employees earned additional amounts of $14,000 which will also be paid on January 3, 2020.
Why is emotional intelligence an important concept : Why is emotional intelligence an important concept? Identify, define, and provide an example of the five (5) dimensions of emotional intelligence.
What is the shop average total cost of a shirt : What is the shop's average total cost of a shirt sold after the advertising begins?
Effect of a constitutional amendment : ?What would be the effect of a Constitutional Amendment requiring Congress to balance the budget given the state of today's economy?
Compute the quantity produced and the amount of maximum : Compute the quantity produced and the amount of maximum profits when we impose a sales tax equal to 4 (per unit sold).
Major distributor of electronic devices : Southern Tech, a major distributor of electronic devices, needs your advice. With more than 1,500 employees who use tablets and smartphones to perform
What are the main components of porters diamond model : How did Harley Davidson take advantage of Porter's four components' model (Diamond Model) to become a global company? What the Harley Davidson case is about?

Reviews

Write a Review

Business Economics Questions & Answers

  What is the present value now of the total revenue

Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 12 countries to their current markets. If the agreement is reached, operations are exp..

  Hypothetical monopolist in the development

Are there any economic lessons that a non-monopoly firm can learn from the hypothetical monopolist in the development of its own strategy for building.

  Standard deviation-z-score and correlation

For statistics class, talking bout mean, standard deviation, Z-score, and correlation.

  Effect on the level of checkable deposits

Illustrate what will be the effect on the level of checkable deposits.

  Analyze the various means of taxation available to finance

Analyze the various means of taxation available to finance the government and evaluate the alternatives to taxes. Identify if there is an economic limit to the extent to which the government can increase taxes. Justify your response.

  Suppose for a particular production function

Suppose for a particular production function that If the price of capital is $5 per unit and the price of labor is $125 per unit, at the cost minimizing combination of capital and labor, the firm should employ

  What caused many nations to abandon the gold standard

What caused many nations to abandon the gold standard by the end of WWI? What were the consequences of that action?

  Central planning committee

What changes would you propose if you were on the central planning committee that made decisions for your city?

  What does the term economies of scale mean

What does the term "economies of scale" mean and what are its advantages or disadvantages?

  Illustrate at what output level would the monopolist produce

Illustrate at what output level would the monopolist produce. Illustrate at what output level would a perfectly competitive firm produce.

  Security engineering-cryptography

Define steganography and discuss a method of how steganography is accomplished.

  Assume that grapefruit is an inferior good

Assume that grapefruit is an inferior good. Draw a perfectly competitive market for grapefruit and a firm selling grapefruit in the long run equilibrium where price is $1 and the firm’s equilibrium quantity is 50. Explain the following situations gra..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd