Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 10.6, Problem 4QQ
To determine
Percentage changes in price .
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Students have asked these similar questions
A bakery that produces 100 loaves of bread has a variable cost of $50 and a fixed
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Marketers strive to deliver a profitable product for their firm. Marketers must understand break-even point calculations and sales targets. Your firm has the ability to produce and sell 10,000 units with a variable costs are $350 per unit and your fixed costs are $250,000, what price must you charge to achieve $100,000 gross profit? Show your equations and calculations.
short answer
1. If profit is maximum at sales of 700 units, does the firm have no choice but to limit sales at this level? Explain your answer.
2. A business firm produces and sells a particular Variable cost is P30/unit. Selling price is P40 per unit. Fixed cost is P60,000.
a. What is the break-even quantity and break-even point? Show your solution.
3. A manager makes the statement that output should be expanded as long as average revenue exceeds average Does this strategy make sense? Explain.
4. Suppose that the steel firm’s costs are shown below: Complete the table and determine the optimal output to be
Price of steel P17 per unit.
Output (Q)
TFC
TVC
TC
MC
TR
MR
Profit/Loss
0
500
0
1
500
50
2
500
90
3
500
140
4
500
200
5
500
270
6
500
350
7
500
450…
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