
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
Please correct answer and don't use hand rating

Transcribed Image Text:The graph shown below is that of Do Drop In, a shop in the dry-cleaning industry.
Cost and revenues (in dollars)
20
18
MC
16
14
12
10
8
64 2
0
60
120
D
(360, 18)
AC
MR
180 240 300 360 420
Quantity per period

Transcribed Image Text:a) At the optimal output, what price will Do Drop In charge and what will be its output?
Price: $
Output:
units
b) At the optimal price and output, what will be its total revenue, total cost, and total loss?
TR: $
Total loss: $
; TC: $
c) If this firm made a rational decision to continue to produce, despite the loss, average variable cost must be below what level?
AVC must be less than $
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps

Knowledge Booster
Similar questions
- Judging types O Miss deadlines Take a long time to make decisions Are judgmental people Come through with their decisions at the last minute O Are all about their schedule and making decision upfrontarrow_forwardCould you answer parts D-F please?arrow_forwardA. Based on the graph would you say marginal utility is increasing or decreasing B. Identify on the graph the quantity level at which utility is maximizedarrow_forward
- Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR's products is fencing used on downhill courses. The fence product comes in 150- foot rolls and sells for $215 per roll. However, RSR offers quantity discounts. The following table shows the price per roll depending on order size: Quantity Ordered From To 1 60 61 120 121 240 241 and up Price per Roll $215 $195 $175 $155 Click on the datafile logo to reference the data. DATA file (a) Use the XLOOKUP function with the preceding pricing table to determine the total revenue from these orders. (b) Use the COUNTIF function to determine the number of orders in each price bin. From To Price per Roll Number of Orders 1 60 $215 61 120 $195 121 240 $175 241 and up $155 172 13 0.0arrow_forwardI cannot read the hand writing can someone tyoe this out for mr please ?arrow_forwardWhat cultural aspects (language, religion, customs) a company must have in the area of technologyarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education


Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education