Question
In: Economics
Question A3 (15 marks) Bibi Mobile is the only authorized producer in producing smart phone in...
Question A3 Bibi Mobile is the only authorized producer in producing smart phone in Country X which is a small country. Its annual revenue is $4,000,000 and the average total cost per smart phone produced is $5,000. The marginal revenue function and the marginal cost functions are as below: Marginal Revenue function: MR = 12,000 - 10Q Marginal Cost function: MC = 2,000 + 15Q where Q represents quantity.
(a) Define the market structure of Bibi Mobile.
(b) State the profit maximization condition. According to this condition based on the given information, calculate the profit maximizing price and quantity of Bibi Mobile? What is the total profit (loss) earned by this company?
(c) Based on the given information and your answers in part (b), illustrate the situation with a diagram and label the critical data related to price, quantity, cost and profit (loss) condition in the diagram. No explanation is needed.
(d) Suppose there is an increase in the minimum wage in Country X and most of the workers are paid on this wage level in Bibi Mobile. Bibi Mobile has recorded a break-even state of profitability afterwards. Illustrate this situation in the same diagram of part (c). Explain.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Bibi Mobile is the only authorized producer in producing smartphone in Country X which is...
Bibi Mobile is the only authorized producer in producing smart
phone in Country X which is a small country. Its annual revenue is
$4,000,000 and the average total cost per smart phone produced is
$5,000. The marginal revenue function and the marginal cost
functions are as below: Marginal Revenue function: MR = 12,000 -
10Q Marginal Cost function: MC = 2,000 + 15Q where Q represents
quantity.
(a) Define the market structure of Bibi Mobile.
(b) State the profit maximization...
Jazz Mobile phone is a famous multinational brand producing smart phones. The main aim for Jazz...
Jazz Mobile phone is a famous multinational brand
producing smart phones. The main aim for
Jazz is to satisfy its users with user friendly, innovative and
elegant devices that simplify the
problems of the customers and enable them to enjoy the product.
Jazz mobile have different series
with amazing features of large display size, amazing battery time,
high definition camera quality
and large internal storages. Jazz have a comprehensive portfolio of
hardware, software and services
that enable the digital transformation...
Jazz Mobile phone is a famous multinational brand producing smart phones. The main aim for Jazz...
Jazz Mobile phone is a famous multinational brand producing
smart phones. The main aim for Jazz is to satisfy its users with
user friendly, innovative and elegant devices that simplify the
problems of the customers and enable them to enjoy the product.
Jazz mobile have different series with amazing features of large
display size, amazing battery time, high definition camera quality
and large internal storages. Jazz have a comprehensive portfolio of
hardware, software and services that enable the digital
transformation...
Question 1: A mobile phone manufacturer claims that the batteries in the manufactured mobile phones are...
Question 1: A mobile phone manufacturer claims that the
batteries in the manufactured mobile phones are used for an average
of 140 hours after being charged once. For this purpose, 17
telephone batteries were chosen randomly and it was determined that
they could be used for an average of 136 hours and the standard
deviation was 29 hours. According to this;
a-) Is the batteries lasting less than 140 minutes according to
1% significance level? Examine statistically.
b-) Determine the...
QUESTION TWO (20 Marks) Consider the hypothetical example of Dominion Island that has firms producing only...
QUESTION TWO
Consider the hypothetical example of Dominion Island that has firms
producing only two goods, gold and cotton, the proceeds of which it
uses to purchase other goods and services from neighbouring islands
through its banks. Assuming that all other required institutions in
an economy are prevalent in this island, discuss the circular flow
of income and spending in Dominion Island. No diagram is
required
Question 15 The economy has a coal producer, a steel producer, and some consumers (no government...
Question 15
The economy has a coal producer, a steel producer, and some
consumers (no government sector).
The coal producer
produces 15 tons of coal which sells for $5 a ton
pays $50 in wages
The steel producer
uses 25 tons of coal bought at $5 per ton, 15 tons come from the
domestic coal producer and 10 from a foreign producer.
Pays $40 in wages.
Produces 10 tons of steel which sells for $20 per ton. 8 tons are...
Short Question 2 (16 marks, 2 marks per sub-question) Fly Ltd is a manufacturer making smart...
Short Question 2 (16 marks, 2 marks per
sub-question)
Fly Ltd is a manufacturer making smart watches for some local
wholesalers. Its fiscal year end falls on 31 December. The company
uses standard costing. The cost driver for variable manufacturing
costs is production volume. The cost driver for variable selling
expenses is sale volume. The company writes off variances to cost
of goods sold in the year in which they occur.
For both 2018 and 2019, the budgeted price and...
You are to manufacture a smart phone case, material selection question below: Speicfy the details of...
You are to manufacture a smart phone case, material selection
question below:
Speicfy the details of the EXACT material grade
selected for each of the three material
variations of the smart phone case; one metal, one polymer and one
carbon-fibre composite (specify the resin type).
- What would be the best choice of material for the phone
case from the three options?
As you consider this question about a project team for a new smart phone, what type...
As you consider this question about a project team for a new
smart phone, what type of people do you need from inside the
organization – and do you need anyone from outside the organization
in beginning? If not, perhaps at a later time?
Question (Double Marginalization) Suppose that Michelin is the only producer of tires and Toyota the only...
Question (Double Marginalization)
Suppose that Michelin is the only producer of tires and Toyota the
only producer of cars. The demand function for cars is given by Q =
40 − 4P. Michelin's (constant) cost of production for a set of five
tires is 3. The production of one car requires a set of five tires
and a bundle of inputs, which Toyota can obtain at a price of
6.
- Suppose first that Michelin and Toyota are just two...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
ADVERTISEMENT