Question
In: Economics
You are the manager of GetMoney Inc and you produce cardboard boxes. Suppose that you hired...
You are the manager of GetMoney Inc and you produce cardboard boxes. Suppose that you hired a consultant for your company to estimate the demand for your cardboard boxes. You collect data on the price and quantity of boxes sold and send it to your consultant, who then estimates the inverse demand equation as P = 6 – Q.
- What are the maximum revenues that you can earn based upon this information?
- At the quantity that maximizes revenues, are marginal revenues positive, negative, or zero? At this quantity, would you recommend increasing production in order to increase revenues? Why or why not. (Please use graphs to support your answer).
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Pete’s Boxes manufactures 12x12x12 cardboard boxes to the public. It sells its cardboard boxes online via its...
Pete’s Boxes manufactures 12x12x12 cardboard boxes to the
public. It sells its cardboard boxes online via
its website with a “normal” price of $0.85 each.
As the manager of Pete’s Boxes, you have calculated the
following unit costs per cardboard box:
Rent
$0.05
Cost of materials $0.10
Hourly wages $0.25
Management Salaries $0.10
Shipping
$0.05
Pete’s Boxes recently learned of an opportunity to sell 100,000
of its cardboard boxes to Amazon for a price of $0.55
each. However, Pete’s Boxes will...
Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported...
Championship Boxing, Inc. is a small manufacturer of cardboard
boxes of all sizes. You have reported for your first day of work,
and the company is in an uproar. Yearly financial statements are
being prepared, but a computer malfunction of the company’s new
BOX-9000 computer has inadvertently erased parts of the company’s
balance sheet, along with almost all related data except the
company’s statement of cash flows. The IT department is working to
retrieve earlier backups, but estimates that the...
Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported...
Championship Boxing, Inc. is a small manufacturer of cardboard
boxes of all sizes. You have reported for your first day of work,
and the company is in an uproar. Yearly financial statements are
being prepared, but a computer malfunction of the company’s new
BOX-9000 computer has inadvertently erased parts of the company’s
balance sheet, along with almost all related data except the
company’s statement of cash flows. The IT department is working to
retrieve earlier backups, but estimates that the...
Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported...
Championship Boxing, Inc. is a small manufacturer of cardboard
boxes of all sizes. You have reported for your first day of work,
and the company is in an uproar. Yearly financial statements are
being prepared, but a computer malfunction of the company’s new
BOX-9000 computer has inadvertently erased parts of the company’s
balance sheet, along with almost all related data except the
company’s statement of cash flows. The IT department is working to
retrieve earlier backups, but estimates that the...
Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported...
Championship Boxing, Inc. is a small manufacturer of cardboard
boxes of all sizes. You have reported for your first day of work,
and the company is in an uproar. Yearly financial statements are
being prepared, but a computer malfunction of the company’s new
BOX-9000 computer has inadvertently erased parts of the company’s
balance sheet, along with almost all related data except the
company’s statement of cash flows. The IT department is working to
retrieve earlier backups, but estimates that the...
Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported...
Championship Boxing, Inc. is a small manufacturer of cardboard
boxes of all sizes. You have reported for your first day of work,
and the company is in an uproar. Yearly financial statements are
being prepared, but a computer malfunction of the company’s new
BOX-9000 computer has inadvertently erased parts of the company’s
balance sheet, along with almost all related data except the
company’s statement of cash flows. The IT department is working to
retrieve earlier backups, but estimates that the...
Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported...
Championship Boxing, Inc. is a small manufacturer of cardboard
boxes of all sizes. You have reported for your first day of work,
and the company is in an uproar. Yearly financial statements are
being prepared, but a computer malfunction of the company’s new
BOX-9000 computer has inadvertently erased parts of the company’s
balance sheet, along with almost all related data except the
company’s statement of cash flows. The IT department is working to
retrieve earlier backups, but estimates that the...
Falero is one of more than a hundred competitive firms in Philadelphia that produce small cardboard boxes for moving
2. The demand curve facing a competitive firm Falero is one of more than a hundred competitive firms in Philadelphia that produce small cardboard boxes for moving. The following graph shows the daily market demand and supply curves. On the following graph, use the green line (triangle symbol) to plot the demand curve for Falero's small cardboard boxes. Fill in the price and the total, marginal, and average revenue Falero earns when it produces 0, 1, 2, or 3 boxes each day. The demand...
What is the Process Strategy of a cardboard boxes company ?
What is the Process Strategy of a cardboard boxes company ?
What are aggregate planning and scheduling in cardboard boxes company?
What are aggregate planning and scheduling in cardboard boxes
company?
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