This topic contains a solution. Click here to go to the answer

Author Question: Werner & Sons is a manufacturer of three-ring binders operating in a perfectly competitive industry. (Read 3241 times)

j.rubin

  • Hero Member
  • *****
  • Posts: 557

Werner & Sons is a manufacturer of three-ring binders operating in a perfectly competitive industry. Table 12-5 shows the firm's cost schedule.

Table 12-5

Quantity (cases) Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost
0 $0 $76
1 30 106
2 50
3 134
4 140
5 160
6 114
7 150
8 190
9 316

Use the table to answer the following questions.

a.

Complete Table 12-5 by filling in the blank cells.

b.

Werner is selling in a perfectly competitive market at a price of $40. What is the profit maximizing or loss-minimizing output?

 

c.

Calculate the firm's profit or loss.

d.

Should the firm continue to produce in the short run? Explain.

e.

If the firm's fixed costs were $30 higher what would be the profit-maximizing output level in the short run? Indicate whether the output level will increase, decrease, or remain unchanged compared to your answer in b.

 

f.

Suppose fixed cost remains at $76. If the price of three-ring binders falls to $20 what is the profit-maximizing or loss-minimizing output? 

 

g.

Calculate the profit or loss. Should the firm continue to produce in the short run? Explain your answer.

 

h.

Suppose the fixed cost remains at $76. What price corresponds to the shut-down point?

i.

Suppose the fixed cost remains at $76. What price corresponds to the break-even point?

« Last Edit: Sep 28, 2020 by Celeste »
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by j.rubin on Oct 8, 2019

joshbk44

  • Sr. Member
  • ****
  • Posts: 340
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly











 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

For a complete list of videos, visit our video library