If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000 for 200 units of sales per month, what minimum price must it sell its goods in the market in the short-run and the long-run for the shop to continue operating?
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If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000 for 200 units of sales per month, what minimum price must it sell its goods in the market in the short-run and the long-run for the shop to continue operating?
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- What kind of firm can sell all its product at the market price but nothing above that price?Happy Go Lucky Electric Company is the only company providing electric power to the city of Go Lucky. The accompanying graph depicts their marginal costs (MC), total costs (ATC), demand (D), and marginal average t revenue (MR). Move point E to the firm's profit maximizing price and quantity. At the profit maximizing point, what is Happy Go Lucky level of profit? 0 $150 $90 -$30 Price and Costs ($/unit) 10 9 8 7 6 10 4 3 2 1 0 0 5 10 15 20 25 30 35 MR MC 0 ATC D 40 45 50An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS 40 each. When the price is reduced to GHS 30 sales increase to 6,000 gallons per month. Calculate the change in revenue due to the change in price.
- Assume you are selling season tickets for a team in the National Football League. What are the fixed and variable costs associated with pricing these season tickets? When you look at the existing season ticket prices for the team, how would you sell those same season tickets at a 10 percent higher price?603 chairs sold at $91 each. If total revenue is $54,873, then calculate:Your product's revenue per unit is $30, and product's cost per unit is $10. If the demand for next month is 200 units, and it costs $1000 one time to set up the machine, what is our profit (in dollars) for next month?
- A bakery sells pretzels. The fixed costs come to $8,750.00 per month. It will cost 35 cents to make each pretzel, and the bakery will charge $1.50 per pretzel. The bakery must sell 7,609 pretzels in a month to break even. The bakery's owners think they may not be able to sell that many pretzels. If they raise the price to $1.75, what will be the break-even point? Hint: use the Break-even point formula.When the price of a kettle increases from OMR 15 to OMR 20, the quantity demanded drops from 3550 units to 2500 units. Calculate the elasticity of demand and comment on the degree of elasticity. A hotel that produces 300 pizzas has a variable cost of OMR 100 and a fixed cost of OMR 150. Calculate the total cost, average total cost, average variable cost, and average fixed cost of the bakery.A bakery that produces 100 loaves of bread has a variable cost of $50 and a fixed cost of $200. Calculate the total cost, average total cost, average variable cost, and average fixed cost of the bakery. 50 units of an output is supplied when the price is OMR 10. When price increases to OMR 20, the units of output supplied will be 80. Calculate elasticity of supply and comment on its elasticity.
- If Amit's Curry House took in $35 000 in revenue last week and had out-of-pocket expenses of $31 500, which of the following best describes Amit's profits last week? Amit really did NOT make any profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm. Amit made an economic profit of $3500. It is NOT clear whether Amit earned any profit last week because it depends on the magnitude of the implicit costs. Amit did NOT earn an economic profit.Doug produced 100 donuts but only sold 90 of them. The average cost of production for each donut was $1. Each of the 90 donuts sold was sold for a price of $1.20. What was Doug's total revenue? $108 $100 $8 $120.What are the short-run and long-run costs of the production of Walmart?
