Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 15, Problem 1.1CE
To determine
To describe: Whether amazon’s warehouse, web pages and one-click sales methods are redeploy able to other products.
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The marginal cost of supplying another unit of
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Many apparel companies expanded into mask production during the pandemic. Now that vaccines are readily available, and places are beginning to drop the mask mandates, these masks are heavily discounted at most retailers, and have been completely discontinued at other retailers. For those firms who are discounting their masks, what must be their estimation of how the price they’re charging relates to AC and AVC? How do fixed costs play into their calculation? At what point would it be more profitable for them to burn the masks than to sell them at a discount?
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cost at each level of output, beginning with the first unit (Enter all values rounded to the nearest penny.)
Total
Price per
Book (S) Costs ($)
Total
Total
Marginal
Revenue (S)
Marginal
Cost ($)
Revenue ($)
Profit (S)
- 4
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5.75
4.00
1
5.50
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5.5
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5.5
3.25
2
5.25
9.50
10.5
1
2.25
3
5.00
11.60
15
3.4
4.5
2.1
4
4.75
14.10
19
4.9
4
25
4.50
17.60
22.5
4.9
3.5
3.5
6
4.25
21.75
25.5
3.75
3
4.15
7
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26.50
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1.5
2.5
4.75
Based on marginal analysis, what is the approximate profit-maximizing level of output for this business?
Chapter 15 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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