What max most profitable course of action

Assignment Help Managerial Economics
Reference no: EM13988145

Max Whitley manger construction build new homes in booming community in Midwest although sales have showed because of a national recession, it now looks as if the recession is about to end . Max wants to be ready with material, labor, and foremen to meet demand for housing. Last year, Max build and sold 40 starter homes the most popular model. While recent recession over, max think that his sale will increase to 50 unites for the current year. The going market price for this model (which max and his numerous competitors have charged) has been $75,000. In addition, whitely construction marginal cost of building this model averages $ 55,000.

a. Based on these facts, recommend a course of action for Max.

b. suppose that the economic boom raises the cost of labour and raw materials, so that additional cost of a starter house rise to $65,000. 

What max most profitable course of action? Explain.

Reference no: EM13988145

Questions Cloud

Locate the qio that serves your state of residence : Use the American Health Quality Association website to locate your state's QIO activities (Find Your QIO). Locate the QIO that serves your state of residence
Explain the application of sliding scale fees : Federally qualified health centers (FQHCs), often referred to as community clinics, are the first line of care for many patients. Please explain the application of sliding scale fees
Problem regarding the different system components : When the system is modeled into different case scenarios it not only goes down to a level of function and features, but also reveals relationships and behaviours amongst different system components.
How to implement process capability process control charts : I want each Product Manager to review the quality situation in the processes that are used for their product lines. In particular, I want a plan on how to implement process capability, process control charts, and Six Sigma. Which processes should ..
What max most profitable course of action : suppose that the economic boom raises the cost of labour and raw materials, so that additional cost of a starter house rise to $65,000.
What types of vegetation would one find on the south rim : What types of vegetation would one find on the South rim? Why is the vegetation so different between North and South sides?
Appropriate messaging mechanism : The principle of polymorphism helps to extend and modify the system scope through appropriate messaging mechanism.
Determine the image magnification : A diverging lens has a focal length -0.16m. An object is placed in the distance 0.1m from the lens on the left side. What is the image magnification?
Tightly connected to its quest for competitive advantage : Should a company’s strategy be tightly connected to its quest for competitive advantage? Why or why not? What difference does it makes whether a company has a sustainable competitive advantage or not?

Reviews

Write a Review

Managerial Economics Questions & Answers

  Linear programming problem

Linear programming is a mathematical technique used to determine the optimal solutions to certain specific problems.

  Demand, supply and the market equilibrium

The article study for the demand, supply and the market equilibrium has been discussed. The article that has been review was published on August 2012.

  Supply and demand in professional sports

Draw the individual cost curves on one graph: marginal cost, average total cost, average ?xed cost, and average variable cost. Place costs ($) on the y-axis and quantity (Q) on the x-axis.

  Explain whether the firm will make economic profit

Explain whether the firm will make economic profit, In the short run and In the long run.

  Determine the official measure of the deficit

Determine the official measure of the deficit

  Coordination of the activities of a business

The organization and coordination of the activities of a business in order to achieve defined objectives.

  What is the profit maximizing number of gizmo widgets

What is the profit maximizing number of Gizmo Widgets that should be introduced? Be sure to account for the fact that Gizmo Widgets displace other kinds of widgets. Again, be sure you provide a brief explanation of your approach/reasoning.

  Determine autocorrelation function of a rectangular pulse

Prepare the sketch the Fourier transform of a rectangular pulse of amplitude 10 V and width 0.1 second that is centered on the zero time axis. Determine the autocorrelation function of a rectangular pulse.

  Managerial economics assignment

Carry out an analysis from the standpoint of both EMV and expected utility to establish Jeremiah’s best course of action, including a consideration of his bidding strategy with regard to the auction.

  Prepare a marginal cost analysed income statement for 2014

Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.

  Prepare a marginal cost analysed income statement for 2014

Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.

  Solve managerial economics questions

MGMT 3306: Solve the assignment problems, 1. Please answer the assignment questions in this docx file and save once you’re satisfied. Assignment 3covers the lectures slides for Week 6.

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