HW 2 Essay

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

In order to make the greatest profit the manager of the El Dorado Star print should first look at and choose the level of output that has the total profit at its maximum or highest. When looking at this scenario, the total profit maximum which is $980.00 at the output level of 4,000 units being put out each day. The manager of El Dorado Star paper should print and sell 4,000 papers each day.

Considering the marginal revenue is larger than the marginal cost, it would increase production which would ultimately increase profit. Then, finally the calculations I made were finding the optimal levels of production. My profit function is P’(x)= 130-(2x/75), so I have to set it equal to 0 then find x, which is 4875. Finally, I plug 4875 into the price function P(x)=(160-x/75) for x, and x is $95. The maximum profit is equals (4875) and the optimal production level should be 4875 laptop cases sold at $95 a

13. At what output level is profit maximized? Explain why profit is maximized at this output level (hint: you need to refer to MR and MC).

3. Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support for your recommendation.

1. Suppose that the total cost of manufacturing q units of a certain product is C  q  thousand dollars, where

3. If the demand curve a monopoly faces is P = 100 - 2Q, and MC is constant at 16, then profit maximization

I have graphed the equations for the marginal revenue and marginal cost and added them to the graph for the revenue of the Apple iPad. The point at which marginal revenue and marginal cost intersect is known as the point at which profits are maximized (pblpathways.com). The point of intersection is aligned with the

The barometric firm has a horizontal marginal cost curve equal to $300. Determine total industry output, market price, and the division of output between the barometric firm and the follower firms.

This incentivized the dairy farmers to find ways to stretch their product further and increase margins. Dairy farmers must be properly compensated for their product if the quality of the milk is to be maintained.

Milk market overview The dairy market consists of milk, butter, cream, yoghurt, dairy desserts and cheese. In value terms, the market is dominated by milk, a large commodity

d. The effect of the price ceiling on milk will depend on where that price ceiling is set. If the ceiling is so high that it has no bearing on the existing market, there will be no effect. If the ceiling is low enough that it changes the existing market, then this will have the same

10. As per International Farm Comparison Network (IFCN) data, milk producers in the US got only 38 per cent share of the consumer's dollar spent on milk, while the rest was earned by the processor and retailer. In the United Kingdom, the milk producers got only 36 percent. However, in India, the milk producer gets more than 70 per cent of the consumer's rupee on an average. Moreover, the milk producer affiliated to co-operatives get more than 80 per cent share of the consumer's rupee. In the US, the farmer's share in the consumer's price has declined from 52 per cent in 1996 to 38 per cent in 2009, while in the UK it has declined from 56 per cent in 1996 to 38 per cent in 2009. This decline clearly demonstrates that the milk producers suffer when the share of organised retail increases.

-Managing the potential clashes between agriculturists who need the most elevated milk pay out and open unit holders who need benefits and profits;

Due to the nature of the dairy sector, all consumers considered that its useful value is nutritional for them and their loved ones. Consumers are always thinking in one direction that the higher the price is, the higher the quality is.