Question number 7

LO Get Add-ins A 14 A D Signature Line . 30 SmartArt Chart Screenshot Reuse Online Models Page Files My Add-ins Link Bookmark Cross- Comment Header Footer Text Quick WordArt Drop Lo Date & Time Videos reference Number Box " Parts Cap - Object - Illustrations Reuse Files Add-ins Media Links Comments Header & Footer Text 5. Create a new spreadsheet in which total fixed cost increases to $5,000. What price should the manager charge? How many papers should be sold in the short run? Fixed cost increase to 5000 6. What should the owners of the Star do in the long run? Should they produce or shut-down? How do we know? In the long run they should continue with production rather than shutting down 7.Dell Computer Corp., the world's largest personal-computer maker, is keenly aware of everything its rival PC manufacturers decide to do. Explain why Dell usually reacts more quickly and more substantially to pricing, product design, and advertising decisions made by Hewlett-packard and Gateway than when these same types of decisions are made by Apple Computer. 8. Two firms, Small and Large, compete by price. Each can choose either a low price or a high price. The following payoff table shows the profit (in thousands of dollars) each firm would earn in each of the four possible decision situations: Small Low price High price