Suppose that the owner of a smartphone monopoly hires you to determine whether his firm has made the profit-maximizing number of smartphones. He provides you with the following production and sales information for the first six months of 2016.
Part 1 In which months should the firm have produced fewer smartphones?
Part 2 In which months should the firm have produced more smartphones?
Part 3 In which months was the firm maximizing profits?
Homework Answers
1. In which months should the firm have produced fewer smartphones?
Answer= April, may, june
Reason- firm should reduce production when MC>MR
2. In which months should the firm have produced more smartphones?
Answer= January, March
Reason- Firm should produce more when MR>MC
3. In which months was the firm maximizing profits?
Answer February
Reason- profits are maximized when MC=MR
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Suppose that the owner of a smartphone monopoly hires you to determine whether his firm has made the profit-maximizing number of smartphones.
Suppose that the owner of a smartphone monopoly hires you to determine whether his firm has made the profit-maximizing number of smartphones. He provides you with the following production and sales information for the first six months of 2016.
Suppose that the owner of a smartphone monopoly hires you to determine whether his firm has made the profit-maximizing number of smartphones. He provides you with the following production and sales information for the first six months of 2016. MonthSalesMR of last unitMC of last unitJanuary 201610,000$250$225February 201610,500$230$230March 201611,000$220$210April 201610,500$210$220May 201612,000$200$210June 201611,000$220$220Part 1 (1 point)See HintIn which months should the firm have produced fewer smartphones? Part 2 (1 point)See HintIn which months should the firm have produced more smartphones? Part 3 (1 point)See HintIn which months was the firm...
Refer to the accompanying table, which represents the costs and production for a monopolist. Price Quantity ...
Refer to the accompanying table, which represents the costs and production for a monopolist. Price Quantity Fixed Cost Variable Cost $15 0 $5 $0 $13 1 $5 $4 $11 2 $5 $9 $9 3 $5 $14 $7 4 $5 $20 $5 5 $5 $29 The profit-maximizing quantity for this firm is: A. five. B. zero. C. one. D. three. E. four. Suppose that the owner of a smartphone monopoly hires...
1. Amanda Enterprises Inc. (AEI) is a profit-maximizing firm. It has a patent for a unique...
1. Amanda Enterprises Inc. (AEI) is a profit-maximizing firm. It has a patent for a unique smartphone application called Pandagram. d. Instead of taxing or subsidizing AEI, assume the state government passes a law requiring AEl to produce the level of output in which AEI would only earn a fair return (normal profit). On the show the profit-maximizing price and quantity as Pm and Qm, Indicate this level ct output as Qn and the price AEI would charge as Pn....
I have the key for this problem but cannot figure out where he gets his values....
I have the key for this problem but cannot figure out where he
gets his values. Need some help. Thanks
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1- For each statement below, determine whether the statement is
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* Number of Hydro-Lux Produced.
* Number of Pumps Purchased.
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* Amount of Available Tubing Available.
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Chapter 11 1. You are a self-employed profit-maximization consultant specializing in monopolies. Five single-price, profit-maximizing monopolies are currently seeking your advice, and al- though the information they have supplied to you is incomplete, your expert knowledge allows you to go back and make a definite recommendation in each case. Select one of the following recommendations for each firm in the short run: a. Remain at the current output level. b. Increase output. c. Reduce output. d. Shut down. e. Go...
1. Amanda Enterprises Inc. (AEI) is a profit-maximizing firm. It has a patent for a unique smartphone application called Pandagram. d. Instead of taxing or subsidizing AEI, assume the state government passes a law requiring AEl to produce the level of output in which AEI would only earn a fair return (normal profit). On the show the profit-maximizing price and quantity as Pm and Qm, Indicate this level ct output as Qn and the price AEI would charge as Pn....
I have the key for this problem but cannot figure out where he
gets his values. Need some help. Thanks
Use the following information to answer the following 11 questions. Consider a profit maximizing monopoly market where孫90 ans e . 12.00 aand TR-4502.13 OOOQ Consider a profit maximizing monopoly market where:-93-175A2 12,000Q and TR -85QA2 13,0000 (Relevant range of Q is from 1 to 200; Q is in hundreds, you do not have to multiply your answers by 100, but...
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 per bag no matter how many bags are produced nstructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Yes Is this a decreasing-cost...
1- For each statement below, determine whether the statement is
a decision variable or not.
* Number of Aqua-Spa Produced.
* Number of Hydro-Lux Produced.
* Number of Pumps Purchased.
* Amount of Available Labor Hours.
* Amount of Available Tubing Available.
* Profit of Aqua-Spa.
* Profit of Hydro-Lux.
Blue Ridge Hot Tubs Blue Ridge Hot Tubs manufactures and sells two models of hot tubs: the Aqua-Spa and the Hydro-Lux. Howie Jones, the owner and manager of the company,...
Check my work Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter how many bags are produced Instructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Click to...
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