What price will you charge for widgets

Assignment Help Business Economics
Reference no: EM132140679

Assume that your business firm is a price taker and that the company sells widgets at $10 apiece. Your firm is maximizing profits. One of your engineers discovers the presence of a substitute input that enables you to cut your production costs in half. Given that information, answer the following questions:

What price will you charge for your widgets following the discovery of the input and its subsequent use in production? Why? Will you decrease output, increase output, or keep output the same? Why?

Reference no: EM132140679

Questions Cloud

What amount intercompany sale was downstream : For 2004, controlling share of consolidated net income is what amount if the intercompany sale was downstream
Protectionism or less protectionism : Explain whether there would be more protectionism or less protectionism. Why? Explain your answer.
Discuss personal experience in regard to quality improvement : What impact did the quality improvement program have on the company or organization? Please provide specific examples demonstrating the impact.
How are their economic systems classified : What are some of the components of these cultures that you need to understand from a business standpoint?
What price will you charge for widgets : What price will you charge for your widgets following the discovery of the input and its subsequent use in production?
What must next year revenue : Assuming a tax rate of 36%, what must next year's revenue be in order for X Company to earn after-tax profits of $25,000
How union pacific will be affected by these external factors : Perform an analysis of the social/demographic, technological, economic, environmental/geographic, and political/legal/governmental segments.
What is the book value of robin investment in nest : Nest's stockholder's equity immediately before the investment by Robin consisted of $3,000,000, What is the book value of Robin's investment in Nest
Response to various shocks to the economy : What happens if wages and prices adjust very quickly in response to various shocks to the economy?

Reviews

Write a Review

Business Economics Questions & Answers

  Measure of goodness-of-fit of estimated regression equation

The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the: a)variation not explained b)variation explained c) variation not explained by the regression equattion relative to the variation expl..

  Please answer all questionsnbsp to get partial credit for

please answer all questions.nbsp to get partial credit for incorrect answers please show your work.nbsp to get full

  Inflation arises

Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:

  Summarize the article tourism investment monitor by tour

In your own words, summarize the article, "Tourism Investment Monitor," by Tourism Research Australia, May 2015. In particular, what are the main messages of the article? Use appropriate diagrams to answer: Do you think increasing investment in Au..

  Determine optimal level of savings

Determine Joe's optimal consumption in both periods of his life. Is Joe a saver or a borrower? Determine his optimal level of savings

  Increase in consumption spending

Why does an increase in investment spending lead to an increase in consumption spending?

  Function of total costs of a business

If the function of total costs of a business comes from: TC(q)= 3q3-54q2+500q+2595

  Calculate marginal propensity to consume-change in saving

In an economy, when income increases from $400 billion to $500 billion, consumption expenditure changes from $420 billion to $500 billion. Calculate the marginal propensity to consume, the change in saving, and the marginal propensity to save.

  Foreign currency exchange market important to business

Foreign exchange markets make it possible for trade to be enacted between countries without lengthy negotiations on trade terms. The exchange rate mechanism is a relatively stable process whereby different currencies can be exchanged in an orderly ma..

  Interest compounded semiannually

A man wants to deposit $50,000 now and $60,000 at the end of six years in a bank that pays 12% interest compounded semiannually. He wants to withdraw an amount every year for the first six years and to withdraw exactly $1,500 more for the following f..

  Air traffic controller stress test

In our text, there is an example of randomized block design in the form of an “Air Traffic Controller Stress Test” that begins on page 570. Do you think that the Air Traffic Controller Stress Test could have been formulated as a factorial experiment?..

  Explain why airlines might be more likely to match price

explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most resemble?

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