(Q-1) A business firm sells its product at $5 per unit. The firm's total cost
is $30 plus $2 per unit of its product.

Question 1: What is the Break-Even Quantity?
Question 2: If the firm's maximum production and sales per week is 20 units,
how much will be the total dollar profit?

Answer 1: The Break-Even quantity is _____
Answer 2: The Total Dollar Profit is ____

(Q-2) A monopoly firm's owner has three options from which to choose.
Opt. #1. To charge $1 per unit and sell 100 units per week.
Opt. #2. To charge $2 per unit and sell 50 units per week.
Opt. #3. To charge $4 per unit and sell 25 units per week.

Question: What option should the owner choose, and why?

Answer 1. The owner should choose option # ____
Answer 2. Explain why you have chose the option you did. ...

(Q-3) State the fundamental steps of decision making process.

(Q-4) The demand for a monopoly firm's product is:
Price Demand
0 . . . . 10
1 8
2 6
3 4
4 2
5 0

The firm's total cost is $TC = $1 + $1xQ. Q stands for the units the firm will
produce and sell.

Question: How many units the firm must produce and sell and why?

Answer 1. The firm must product and sell number of units = ____
Answer 2. The firm must product and sell these units because .......

(Q-5) State the Law of Diminishing Marginal Productivity. Then provide a simple
numerical example which shows this Law.

Answer 1: The Law of Diminishing Marginal Productivity says: .....
Answer 2: The numerical example is the following: .....

(Q-6l) A business firm is producing and selling tables. Currently the output
per unit of employment is 6 tables per day.

Q-1: What is the Marginal Product of Labor:
Q-2: How many tables will be product per day if 15 units of labor are
employed?

Answer-1: The Marginal Product of Labor is _______
Answer-2: The number of tables will be produced equals _____

Answer rating: 100% (QA)

1 Breakeven quantity Fixed cost contribution per unit Contribution per unit selling price per unit variable cost per unit hence contribution per unit ... View the full answer