Unnecessarily Noisy Computers Inc. is a firm that makes CPUs. Three inputs are required to make...

 

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Unnecessarily Noisy Computers Inc. is a firm that makes CPUs. Three inputs are required to make CPUs: machines, workers, and raw materials. Each machine costs $80, and lasts forever. Workers require a wage $10 per week each. Each worker makes 10 CPUs per week using 1 machine, and can only be assigned to one machine. The raw material necessary to make one CPU costs 50 cents. The market for CPUs is perfectly competitive. a) Suppose that you have inherited UNC Inc. The firm currently owns 10 machines, and has already hired and paid one worker for each machine for the following week. What is the minimum price at which you would be willing to produce CPUs (this week)? b) Suppose instead that you had not hired workers yet. Would you still be willing to produce CPUs for the same price you derived in 1.? Explain why or why not. c) Now suppose that you are an outside investor who is thinking about starting a CPU company. De- mand is Q = 60 - P, and the market price is $10. Scientists have just announced that the world is ending in one week, so that's all the time you have to take the CPU market by storm and earn as much Window money as possible. Should you enter the CPU market? Go to Settings to acti Unnecessarily Noisy Computers Inc. is a firm that makes CPUs. Three inputs are required to make CPUs: machines, workers, and raw materials. Each machine costs $80, and lasts forever. Workers require a wage $10 per week each. Each worker makes 10 CPUs per week using 1 machine, and can only be assigned to one machine. The raw material necessary to make one CPU costs 50 cents. The market for CPUs is perfectly competitive. a) Suppose that you have inherited UNC Inc. The firm currently owns 10 machines, and has already hired and paid one worker for each machine for the following week. What is the minimum price at which you would be willing to produce CPUs (this week)? b) Suppose instead that you had not hired workers yet. Would you still be willing to produce CPUs for the same price you derived in 1.? Explain why or why not. c) Now suppose that you are an outside investor who is thinking about starting a CPU company. De- mand is Q = 60 - P, and the market price is $10. Scientists have just announced that the world is ending in one week, so that's all the time you have to take the CPU market by storm and earn as much Window money as possible. Should you enter the CPU market? Go to Settings to acti