Calculate marginal costs and Pbook-estimated market price, Microeconomics

Assignment Help:

Question

You are the COO at PineApple, a company that produces notebook computers for business people. The company has just developed a new model - Pbook. For production of Pbook, the company is considering production at all or some of the following plants.

1827_production of Pbook.png

As the COO, you need to find out how to allocate the production.

(i)  What are the marginal costs of plant 1, plant 2, and plant 3?

(ii) How would you allocate the production of Pbook? What % of total outputs should be produced at plant 1, plant 2, and plant 3?

(iii) One of your subordinates argues that either plant 2 or plant 3 does not need to be used as they have exactly same cost structure. Do you agree? Explain carefully.

(iv) Your marketing manager reported that that the estimated market price of the new product is P = $2,000 how many units are you going to produce in total? How would you allocate the production to each plant (how many units each factory should produce)?


Related Discussions:- Calculate marginal costs and Pbook-estimated market price

Is protectionism always beneficial?, Problem 1: i) Is Protectionism a...

Problem 1: i) Is Protectionism always beneficial? Discuss. ii) To what extent can a country actually rely on the principle of Comparative advantage before engaging in in

Find the total cost and marginal cost function, Question : (a) Suppose...

Question : (a) Suppose Firm A is a perfectly competitive firm producing good X and faces the following average revenue and average cost Average Revenue: P = 10 Average Co

Production function, A competitive firm produces output using three fixed f...

A competitive firm produces output using three fixed factors and one variable factor. The firm’s short-run production function is q = 154x – 5x2, where x is the amount of variable

Capitalist economy, Capitalist Economy: Under capitalist economy factors of...

Capitalist Economy: Under capitalist economy factors of production are owned and managed by private entrepreneurs. Production takes place on. the initiative an enterprise of the pe

Esalstcity of demand and supply, why is the concept of elasticity crucial t...

why is the concept of elasticity crucial to the study of economics?

Microeconomics, I need help on MCQs on international trade and imperfect co...

I need help on MCQs on international trade and imperfect competetion

Compute the after-tax cost of debenture, A 5-years Rs.100 debenture of a fi...

A 5-years Rs.100 debenture of a firm can be sold for a net price of Rs. 96.50. The coupon rate of interest is 14 per cent per annum, and the debenture will be redeemed at 5 per cen

Exchange rate policy - imf, Exchange Rate Policy: After the second ame...

Exchange Rate Policy: After the second amendment to the Articles of Agreement of IMF which came into effect on April 1, 1978, every member is free to choose its own exchange r

Demand Forecasting, what is demand forecasting and defines its techniques

what is demand forecasting and defines its techniques

Write Your Message!

Captcha
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