Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases quilts from a large producer for $100 each and sells them in her store at a price that does not change with the number of quilts that she sells. Katie is considering vertically integrating by making her own quilts. If the fixed cost of vertically integrating is $25,000 and she can produce quilts at $50 per quilt, her total cost of producing quilts, q, herself is C= 25,000 + 50g. How many quilts does Katie need to sell for vertical integration to be a profitable decision? For vertical integration to be profitable, Katie must sell at least quilts. (Enter your response rounded to the nearest whole number.)

A weaver working with a handloom is able to produce 11 yards of fabric per day. The typical weaver is paid £10 for a day's work. A loom powered by a steam engine is able to produce 82 yards of fabric per day. The powered loom still needs a worker to operate it, earning £10 per day, but also needs 24 pounds of coal to power it. At what price per pound of coal does the cost of producing fabric by power loom equal the cost of producing it by handloom? Round your final answer to two decimal places.

4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) 120 1 210 2 270 3 315 4 380 5 475 630

D. The Airbus A350, first entered service in January 2015 with Qatar Airways, is one of the most techno- logically advanced passenger airplanes today. Made largely of carbon fibre reinforced polymer, its high fuel efficiency makes it a popular choice of long-range airliner for airlines. Suppose Airbus' production function for this plane is C = 20 +5Q², and the plane is sold at a price of P = $50. 1. Create a table detailing Airbus' total cost, average total cost, marginal cost, total revenue, marginal revenue, and profit for each quantity between 0 and 10 of the A350. 2. What is Airbus' profit-maximizing quantity for the A350? How much profit does Airbus make? 3. Plot Airbus' marginal cost, marginal revenue, and average total cost curves, lable the profit-maximizing quantity Q*, and the area of company's profit. 4. Plot Airbus' total cost and total revenue curves, lable the profit-maximizing quantity Q*. 1 5. Plot Airbus' profit curve, lable the profit-maximizing quantity Q* and profit…