You are the manager of a firm that sells slippers for $20 a pair. You are producing

Question:

You are the manager of a firm that sells slippers for $20 a pair. You are producing 1200 pairs of slippers each month, at an average cost of $2 each. The marginal cost at a production level of 1200 is $3 per pair.
(a) Are you making or losing money?
(b) Will increasing production increase or decrease your average cost? Your profit?
(c) Would you recommend that production be increased or decreased?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Applied Calculus

ISBN: 9781119275565

6th Edition

Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum, Brad G. Osgood, Andrew Pasquale

See More Books

Question Posted: Apr 15, 2023 02:00 AM

See More Questions

You are the manager of a firm that sells a commodity in a market that resembles perfect competition, and your cost function is C(Q) = Q + 2Q2. Unfortunately, due to production lags, you must make...
You are the manager of a firm that sells a "commodity" in a market that resembles perfect competition, and your cost function is C(Q) = 2Q + 3Q2. Unfortunately, due to production lags, you must make...
You are the manager of a firm that sells a leading brand of alkaline batteries. A file named Q12.xls with data on the demand for your product is available online at www.mhhe.com/baye7e. Specifically,...
Suppose a state was trying to decide whether to fund primary and secondary education with a property tax or an income tax. What implications might this choice have for land use in the state?
Nina Niko launched a new business, Nikos Maintenance Co.,that began operations on June 1. The following transactions were completed by the company during that first month. June 1 Nina Niko invested...
To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals....
The actual confidence level conf_level does not equal the theoretical confidence level 0.01 in Example 3.2. Explain why. Data from Example 3.2 Data form Figure 3.3 Example 3.2 (Confidence interval...
Assume the Carson Coffee Roasters Corp. ended the month of August 2017 with these data: Requirement 1. Prepare the statement of cash flows of Carson Coffee Roasters Corp., for the month ended August...
The entire graph of the function h is shown in the figure below. Write the domain and range of h using interval notation. 3 m 3 4
Should Grand Central Publishing continue to bid for Dewey, wait for the scheduled auction with several interested publishers, or pull out of the race? Why? 2. What is the role of authors, agents, and...
As I left home in the morning, I put on a light jacket because, although the temperature was dropping, it seemed that the temperature would not go much lower. But I was wrong. Around noon a northerly...
During a flood, the water level in a river first rose faster and faster, then rose more and more slowly until it reached its highest point, then went back down to its pre-flood level. Consider water...
As a basis for a brochure describing the speed of a new computer system, you have measured how long it takes the machine to complete a particular benchmark database program. Since the state of the...
Depending on which of Exercises 7 through 12 you have completed, determine the required crosssectional areas of the members comprising one or more of the following structures. Assume steel members...
UniCom produces a wide range of consumer electronics. UniComs Newark, New York, plant produces two types of cordless phones: 2.4 GHz and 6.0 GHz. The following table summarizes operations at the...
In 2018, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in 2018 were about $27 per hour, and certain highly skilled...
To change the volume of a gas isothermally by a factor $f_{1}$ of its initial value, it is necessary to do work $W_{1}$ on the gas. What work $W_{2}$ is needed to change the volume by a factor...
From the accounts and values of Fred McKay as at 31 March 2022, prepare an accounting equation summary for assets, liabilities and owners equity. List the assets under the headings of current and...
Could the decisions be improved by using one of the group decision-making techniques discussed in your text? Dont forget to consider the downside to this, such as increased time to make the decision.
Activator rod AB exerts on crank BCD a force P directed along line AB. Knowing that P must have a 100-N component perpendicular to arm BC of the crank, determine (a) The magnitude of the force P, (b)...
In the past, patrons of a cinema complex have spent an average of $2.50 for popcorn and other snacks, with a standard deviation of $0.90. The amounts of these expenditures have been normally...
According to Remodeling magazine, the average cost to convert an existing room into a home office with custom cabinetry and rewiring for electronic equipment is $5976. Assuming a population standard...
Under what circumstances should the t-statistic be used in carrying out a hypothesis test for the population mean?
Six-sevenths of Jesse Black's inventory was destroyed by fire. He sold the remaining part, which was slightly damaged, for nine-elevenths of its value and received $2400. (a) What was the value of...
Frank Rogers owns a small firm that manufactures "Rogers Sunglasses." Frank has been approached by REI about selling a seasonal sunglass design through their stores. Frank offers REI two purchasing...
Using the logic gates and Multisim test whether the following Boolean expression is valid or AB + BC + CA = AB + BC + C not. Verify your simulation with hand calculation by applying Boolean theorems...

You are the manager of a firm that sells slippers for $20 a pair. You are producing

Question:

Step by Step Answer:

a Profit equals revenue minus cost Your monthly revenue is 1200 slippers 20s...View the full answer

Applied Calculus

Students also viewed these Mathematics questions