Please Help, Managerial Economics

Assignment Help:
Jane, the manager of a company manufacturing air-conditioning units can choose between two production technologies for a new product line. If she chooses and installs technology 1, the yearly costs will be C1(q) = 3600 + 65q + 36q2. If she installs technology 2, they will be C2(q) = 900 + 900q + q2.

a. What are the average total costs of production for each technology? What are the average variable costs of production?

b. Which technology would Jane prefer (purely from a cost standpoint) if the company expected to sell 30 units in summer and 10 units in winter each year?

c. The marginal cost associated with these two technologies are MC1 = 65 + 72q and
MC2 = 900 + 2q respectively. At what level of output, the average cost will be minimized for both technologies?

Related Discussions:- Please Help

Equilibria than continuous pricing, Two firms are engaged in Bertrand compe...

Two firms are engaged in Bertrand competition. Both firms have a stable marginal cost of €7. Presently, every firm is allocated half the market. There are 10,000 people in the popu

Causes of inflation, Causes of Inflation   At present three main expl...

Causes of Inflation   At present three main explanations are put forward: cost-push, demand-pull, and monetary. Cost-push inflation occurs when he increasing costs of prod

Elasticity of Demand, Calculate point elasticity of demand for demand funct...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2.

Underlying stock price, Financial engineering deals with the design of new ...

Financial engineering deals with the design of new assets. Draw the payoff (at t=1) of the following bull butterfly spread:     Purchase 1 call with exercise price a   Sell 2 ca

cournot equilibrium, Air Canada and KLM compete for customers on flights a...

Air Canada and KLM compete for customers on flights among Amsterdam and Toronto. The total number of passengers (Q) flown by these two firms is the sum of passengers who fly KLM, Q

International liquidity, INTERNATIONAL LIQUIDITY International liquidi...

INTERNATIONAL LIQUIDITY International liquidity is the name given to the assets which central banks use to influence the external value of their currencies.  It can also be

Ramsey pricing, explain in detail ramsey pricing with example?

explain in detail ramsey pricing with example?

Wage determination, WAGE DETERMINATION, POLICY AND THEORIES Wages and ...

WAGE DETERMINATION, POLICY AND THEORIES Wages and salaries are rewards to labour as a factor of production of goods and services.  In ordinary speech a distinction is frequent

Demand for money, Demand for money   The demand for money is a more d...

Demand for money   The demand for money is a more difficult concept than the demand for goods and services.  It refers to the desire to hold one's assets as money rather tha

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