EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 12SP
To determine
Describe the economic concept that should be used to decide whether to leave or stay through the remainder of the film.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A studio manager stated that she would not turn down $2M per sequel right. If you paid $2M per sequel right, are you purchasing them for less than what they are valued?
Round off your final answer to whole #.
A company produces and sells a consumer product and is able
to control the demand by varying the selling price. The approximate relationship between price and demand is
p=45 + 2700/D - 5000/D2 for D > 1
The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $38 per unit.
What is the number of units that should be produced and sold each month to maximize profit?
You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost schedule: Your current level of production is 600 devices, all of which have been sold. Someone calls, desperate to buy one of your music players. The caller offers you $550 for it. Should you accept the offer? Why or why not. Single line text.
Chapter 9 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
Knowledge Booster
Similar questions
- Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand.arrow_forwardJacob, a chef who lives in the community, is really excited to start his own cookbook. He found a local publishing house charging him $ 25,500 per year in overhead (fixed costs), $ 14 per textbook in publishing costs, and a copyright fee of 10% of the sale price. reported that they could print a maximum of 12,000 books per year. Jacob decided, with the publishing house, to sell the book for $ 25 each. a) Create a break-even graph that shows fixed costs, total costs, total revenue, break-even point, and areas of profit and loss. cule ic co b) Determine the break-even point in relation to volume and in relation to resales and calculate the break-even point as a percentage of maximum capacity. C) Calculate the new break-even point for volume and revenue if the fixed cost increases 15% per year, the publishing cost increases to $ 6 per book, and the sale price increases to $ 30.arrow_forwardWhen total revenue is $4000, explicit cost is $700, and implicit cost is $500, then calculate the economic gain.arrow_forward
- Bill Lewis, manager of the Thomas Electronics Division, called a meeting with his controller, Brindon Peterson, and his marketing manager, Patty Fritz. The following is a transcript of the conversation that took place during the meeting: Bill: Brindon, the variable costing system that you developed has proved to be a big plus for our division. Our success in winning bids has increased, and as a result our revenues have increased by 25%. However, if we intend to meet this year’s profit targets, we are going to need something extra—am I right, Patty? Patty: Absolutely. While we have been able to win more bids, we still are losing too many, particularly to our major competitor, Kilborn Electronics. If we knew more about their bidding strategy, we could be more successful at competing with them. Brindon: Would knowing their variable costs help? Patty: Certainly. It would give me their minimum price. With that knowledge, I’m sure that we could find a way to beat them on several jobs,…arrow_forwardBPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form. Form Type Mix of Forms Form Cost A 0.2 $0.80 B 0.2 $0.40 C 0.2 $0.40 D 0.2 $1.60 E 0.2 $0.80 The expected cost of digitizing a form is $__________- . Suppose the client and BPO agree to a deal, whereby the client pays BPO to digitize forms. The price of each form processed is equal to the expected cost of the form that you calculated in the previous part of the problem. Suppose that after the agreement, the client sends an equal mix of forms of types D and E only. The expected digitization cost per form of the forms sent by the client is $___________ . This leads to an expected loss of $__________ per form for BPO. (Hint: Do not round your answers. Enter the loss as a positive number.)arrow_forwardI'm trying to get you to notice something that I haven't told you yet here. (So you won't be able to remember it, don't even try!) In order to figure it out, I recommend first doing the first question from the End of Week Quiz. That should get you close. There's just one additional step to get the answer to this. You will probably need to consult the text. Consider the same firm from the end of week quiz with the following TVC schedule and a fixed cost of 32. Q 1 2 3 4 5 6 7 8 9 10 TVC 20 30 36 44 54 66 80 96 114 134 Now let the demand for this good be given by the following schedule and assume that this is a perfectly competitive market with identical firms and free entry/exit. P 6 8 10…arrow_forward
- Hand written solutions are strictly prohibittedarrow_forwardXYZ company can manufacture their own products and sells them. They are able to control the demand by changing the price that is determined by the equation below. The company is thinking of maximizing their profit. The fixed cost is $1,000 per month and the variable cost is $40 per unit. Find the number of units that must be manufactured and sold monthly to maximize profit. (Demand D in the equation is monthly) Hint: Profit = Total Revenue - Total Cost 2,700 5,000 p = $38 + D for D > 1 D2 1 Add filearrow_forwardShowing your analytical work clearly in a step by step manner is a must. Otherwise points will be deducted. You can use Excel or any other graphing tool. A startup software company has indicated its cost, c(x), and revenue, f(x), as given below, such that x is the number of lines of programing code (units in 1000 lines). c(x) = 80000 - 2(x-200)2 f(x) = (x-10)3 + (x+10)2 Find the marginal cost analytically, and draw its graph Find the marginal revenue analytically, and draw its graph Solve for the x point where marginal cost is equal to marginal revenue analytically. Comment why is this point significant analytically. Write the profit function and draw its graph Is the profit function concave up or concave down? Answer all questions neatly pleasearrow_forward
- The government of the Republic of Zambia plans to implement an irrigation project to increase maize production in your district. Answer the following questions. List the possible sunk costs of this project.arrow_forwardC&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows: Greet customer Take order Process order Deliver order Activity Processing time per customer 2 seconds 30 seconds 60 seconds 5 seconds Assume demand is unlimited. If one additional employee is added to the bottleneck activity, what will be the percentage change in process capacity?arrow_forwardWhat is the difference between a price analysis and a cost analysisarrow_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