Business, 28.01.2020 20:53 jjxt126

Alocal pizza shop has hired a consultant to it compete with national chains in the area. because most business is handled by these national chains, the local shop operates as a price taker. using historical data on costs, the consultant finds that short-run total costs each day are given by:

stc = 10+q+0.1q²

a) find the short-run marginal cost (smc) function associated with this shop.

b)what is this price-taking firm's short-run supply curve?

c)does this firm have a shutdown price? that is, what is the lowest price at which the firm will produce any pizza?

d)find the short-run average cost (sac) for this shop. find the q where the sac reaches minimum point. how would you verify this?

e) the consultant also claims that any price for pizza of less than $3 will cause the shop to lose money. is this consultant correct? explain.

f) currently the price of pizza is low ($2) because one major chain is having a sale. because this price does not cover average costs, the consultant recommends that this shop cease operations until the sale is over. would you agree with this recommendation? explain.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 21:00

On july 2, year 4, wynn, inc., purchased as a short-term investment a $1 million face-value kean co. 8% bond for $910,000 plus accrued interest to yield 10%. the bonds mature on january 1, year 11, and pay interest annually on january 1. on december 31, year 4, the bonds had a fair value of $945,000. on february 13, year 5, wynn sold the bonds for $920,000. in its december 31, year 4, balance sheet, what amount should wynn report for the bond if it is classified as an available-for-sale security?

Answers: 3

Answer

Business, 23.06.2019 02:30

Beachballs, inc., expects abnormally high earnings for the next three years due to the forecast of unusually hot summers. after the 3-year period, their growth will level off to its normal rate of 6%. dividends and earnings are expected to grow at 20% for years 1 and 2 and 15% in year 3. the last dividend paid was $1.00. if an investor requires a 10% return on beachballs, the price she is willing to pay for the stock is closest to:

Answers: 3

Answer

Business, 23.06.2019 07:30

The uk economic climate is important for pod point. it is considering two options to reduce the impact of falling uk consumer incomes on sales: 1. focus on selling to foreign countries. or 2. cut costs of production. justify which one of these two options pod point should choose

Answers: 1

Answer

Business, 23.06.2019 10:00

The american dream includes home ownership. but in the last few years, it's gotten harder and harder to own a home. do you think home ownership is important to most americans today? why or why not?

Answers: 1

Answer

You know the right answer?

Alocal pizza shop has hired a consultant to it compete with national chains in the area. because mo...

Questions