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

Total, Compare and contrast the different measures of revenue

Compare and contrast the different measures of revenue

TAXATION, WITH reference to incidence taxation,explain with the help diagra...

WITH reference to incidence taxation,explain with the help diagrams,who bears the incidence of taxation when the demand for a commodity is perfectly inelastic, perfectly elastic an

What is the distinguishes a progressive income tax, What is the distinguish...

What is the distinguishes a progressive income tax, from a proportional income tax, or a regressive income tax? A proportional income tax takes the similar percentage of a pe

#title.micro, what are jobs of the department of justice and the federal tr...

what are jobs of the department of justice and the federal trade commission in business pratices.

Theory of second best, What is the theory of Second Best? Prove the theore...

What is the theory of Second Best? Prove the theorem with the help of a diagram.

The demand for big macs, Ask question #Min1) Illustrate and explain the cha...

Ask question #Min1) Illustrate and explain the changing demand for big Mac using the indifference curve and budget line.imum 100 words accepted#

Production function, how to find least cost combination of factor inputs gi...

how to find least cost combination of factor inputs given the production

Optimal consumption bundle and marginal utility per dollar, What is the opt...

What is the optimal consumption bundle and marginal utility per dollar? The optimal consumption bundle is the consumption bundle which maximizes a consumer's total utility sp

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