1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ugo [173]
3 years ago
6

Casey’s Sprocket, Inc.’s short-run cost curve is C= ((25q^2)/K) +15K where q is the number of sprockets produced and K is the nu

mber of robot hours Casey hires. Currently, Casey hires 10 robot hours. The short-run marginal cost curve is MC=50(q/k) Suppose the sprocket market is perfectly competitive. Answer the following questions:
If the market price for a sprocket is $250, what is the profit-maximizing output level for Casey’s firm?

Assume all fixed costs are sunk. If the market price for a sprocket drops to $50, will Casey shut down the firm? Why or why not?
Business
1 answer:
Ivahew [28]3 years ago
6 0

Answer:

At 10 robot hours producing 50 sprocket It maximizes his profit to $ 6,100

At a price of 50 per sprocket Casey will drop production to 10 where it can still earn a gain of 100 dollars.

Explanation:

K = 10

MC = 50(q/k) = 50(q/10)

The profit maximization point is that marginal cost = marginal revenue

MR = 250

MR = MC

250 = 50(q/10)

250/50x10 = q = 50

Revenue: 250 x 50 = 12,500

Cost: (25q^2)/K+15K = 25(50^2)/10 + 15*10

C = 6,250 + 150 = 6,400

Profit: 12,500- 6,400 = 6,100

If price drops to 50 and already hired 10 robo hours:

Then:

50 = 50(q/10)

50/50*10 = q = 10

Revenue: 50 x 10 = 500

Cost (25q^2)/K+15K  = 25(10^2)/10 + 15*10

C = 250 + 150 = 400

Profit: 500 - 400 = 100

You might be interested in
After you have shaped a successive approximation to a terminal behavior, what general type of reinforcement schedule should you
Sav [38]

Subsequent to shaping a successive approximation to a terminal behavior, I should use intermittent reinforcement schedule prior to increasing my criteria for reinforcement.  An intermittent reinforcement schedule refers to a situation where reinforcement is done after some behaviors or responses but certainly not after each one.

3 0
3 years ago
When all market participants are price takers who have no influence over prices, the markets have a. numerous buyers but only a
larisa [96]

Answer:

numerous buyers and sellers. 

Explanation:

When market participants are price takers, they have no influence over priced. Prices are set by market forces. Goods are also usually homogenous. If sellers attempt to increase their price, they lose their buyers and if they cut price they make losses.

I hope my answer helps you

7 0
3 years ago
WHO APPLIES B2C MARKETING?​
sveta [45]
The everyday consumer as the target market is what ultimately differentiates B2C enterprises from business-to-business (B2B) companies, which, as the name suggests, focus on selling their wares to other companies.
6 0
2 years ago
A person's debt-to-income ratio describes.
Mamont248 [21]

Answer:

D. how much the person has borrowed compared to how much he or she earns​

Explanation:

A person's debt-to-income ratio, abbreviated as DTI, is a measure of a person's monthly debt obligation against their monthly gross income. It shows the fraction or percentage of gross income that is committed to debt repayments. Lenders use the debt-to-income ratio to assess a borrower's ability to repay future loans.

Calculating the debt-to-income ratio requires one to add up all their existing loan repayments and divide that figure with their gross income. Lenders insist on a ration that does not exceed 36% as per the 28/36 rule.

7 0
3 years ago
Read 2 more answers
Which of the following statements is NOT true regarding location​ decisions?
mariarad [96]

Answer:

B. Once management is committed to a specific​ location, many costs become relatively easy to reduce.

Explanation:

  • As a location decision is essential and a specific decision taken by the company it has to be focused on its decision and does not need to draw any conclusion as a location decision made in the past cannot be easily overcome or reduced depending on the choices of the firm or the location availability of the resources.
  • The location adds a cost to the company and is evaluated on the basis of the internal policy and thus is costly to undo.  A location often serves as a point of maximum profit or the operations performed by a firm like the effects form the land cost, labor costs, energy costs, and transport costs, etc.
3 0
4 years ago
Other questions:
  • 7-year-old Alice is working with clay in art class, and she rolls a round ball of clay between her hands until it becomes a long
    7·1 answer
  • An airline has the following data about an​ airplane:
    11·1 answer
  • The inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximate
    11·1 answer
  • Retired utility workers are suing their former employer for knowingly exposing them to asbestos without warning them of the heal
    5·1 answer
  • A college is run by a board of trustees, which hires a president, who in turn selects vice presidents, deans, and other administ
    8·1 answer
  • Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase orders, sales invoices and
    7·1 answer
  • Why are savings tools ideal for storing emergency savings? identify at least two reasons. (2 points?
    10·1 answer
  • In order to construct a supply curve and demonstrate the law of supply one would have to __________.
    15·1 answer
  • Delta Diamonds had 5 diamonds available for sale this year: 1 purchased June 1 for $500, 2 purchased July 9 for $550 each, and 2
    6·1 answer
  • Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, producer
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!