Redstone Clayworks, Inc. is located in Sedona, Arizona and
manufactures clay fire pits for patios. They are one of about two
dozen firms around the world that manufacture and sell clay fire
pits for retailers such as Home Depot, Lowe’s, Front Gate, and
other upscale home product chains. There is virtually no product
differentiation. A clay fire pit is a clay fire pit.
Assume that the world market demand and supply curves for clay fire pots intersects at $300 per unit.
The spreadsheet below gives some of Redstone’s production cost data. A template for the spreadsheet is provided in the Course Materials.
|
Q |
TC |
TFC |
TVC |
|
0 |
6,000 |
6,000 |
- |
|
100 |
12,000 |
6,000 |
6,000 |
|
200 |
15,000 |
6,000 |
9,000 |
|
300 |
21,000 |
6,000 |
15,000 |
|
400 |
33,000 |
6,000 |
27,000 |
|
500 |
48,000 |
6,000 |
42,000 |
|
600 |
65,000 |
6,000 |
59,000 |
|
700 |
83,000 |
6,000 |
77,000 |
|
800 |
102,000 |
6,000 |
96,000 |
|
900 |
123,000 |
6,000 |
117,000 |
|
1000 |
158,000 |
6,000 |
152,000 |
Add columns to show, respectively, average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and short-run marginal cost (SMC). Then, add columns to show, respectively, total revenue (TR), marginal revenue (MR), total profit, average profit, and profit margin.
Place your completed spreadsheet in the Drop Box,and use it to
answer questions 1-7. Your spreadsheet and calculations are worth
15 points and count as 500 words toward your word count
requirement.
Your spreadsheet must include formulas showing how you arrived at the calculations. As an alternative, you may also submit a document showing your step-by-step calculations for each of the cells. You will not receive credit if you do not show your work using one of these two methods.
For Questions 2, 4, and 5, be sure to employ both of the General Rules for Implementing the Output Decision in your explanations.
A detailed explanation should be given for each question.
1. If Redstone wishes to maximize profit margin, how many units should it produce?
2. What level of output should the manager of Redstone choose to produce? Explain your choice in at least 100 words.
3. Are your output choices the same in questions 1 and 2? Why or why not? Explain using at least 100 words.
4. Make a copy of your spreadsheet and double the fixed costs. How does this change your answer to question 2? Explain in detail.
5. Make another copy of your spreadsheet and suppose that fire pits fall out of fashion causing prices fall worldwide to $85. How many units should the manager choose to produce? Explain.
6. Should the firm shut down in the short-run? Explain in detail why or why not.
7. Should the firm shut down in the long run? Explain in detail why or why not.
8. Airline industry experts generally believe that because of the "highly competitive" nature of U.S. airline markets, it is usually impossible to pass on higher jet fuel prices to passengers by raising ticket prices.
What factors do you suppose contribute to making U.S. airline markets "highly competitive"?
Accepting the premise that U.S. airline markets are indeed highly competitive, analyze in both the short run and long run the difficulty of raising ticket prices when jet fuel prices rise.
In: Economics
Suppose you are a special advisor to Manitoba Government. Premier Brian Pallister would like you to conduct a long-run economic analysis of the COVID-19 pandemic.
There is currently a debate about the effect of the pandemic on the number of immigrants to Manitoba and the growth rate of the labor force in the province: some people think the labor force growth rate will decrease due to the pandemic as the number of immigrants will fall, while others think the number of immigrants will increase (maybe because other countries are handling the pandemic poorly) and the labor force growth rate will increase. Your job is not to take a side, but rather to document the effects on output per capita for each side of the debate.
Explain the effects of a permanent increase or decrease in labor force growth rate on the long-run steady state of the economy. You may use a graph or a few sentences to explain your conclusion. (1.5 points)
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Week 2 Discussion Board
An organization estimates that 31% of new cars have a cosmetic defect, such as a scratch or a dent, when they are delivered to car dealers. This same organization believes that 6% have a functional defect – something that doesn’t work properly – and that 2% of new cars have both types of problems.
In: Statistics and Probability
A textile manufacturer wanted to know if the breaking load (kg/25 mm width) is greater for unabraded fabrics versus fabrics that were abraded. Abraded fabrics are produced by the use of friction to produce surface wear on the fabric. The manufacturer randomly selected equal-sized sections of 21 of their fabrics. Each section was then equally divided into two pieces, with the abrasion process being applied to one of them. The tensile strength measurements were taken for all of the fabric pieces with the results given in the following table. You will not need to use the information from all the rows. Please assume that the distribution is normal.
a) Should this situation be analyzed via a two-sample independent or paired method?
Please explain the correct answer. If this is a paired situation, please state the common characteristic that makes these data paired.
b) What is the alternative hypothesis for this situation?
Please explain the correct answer.
c) Is there any evidence to suggest that the mean tensile strength of the unabraded fabrics is greater than the mean strength of the abraded fabrics? Use α = 0.05.
Using R studio code, calculate the test statistic. Be sure that the information for the unabraided fabric is first.
Using R studio code, calculate the p-value.
Write the complete four steps of the hypothesis test for this situation.
d) Calculate the appropriate confidence interval or bound for the mean based on the question in part c). If you calculate a bound, type 10000 to indicate ∞.
Interpret the interval or bound calculated above.
e) In practical terms, does the data imply that the mean tensile strength of the unabraded fabrics is greater than that of the abraded fabrics? Please explain your reasoning. This part uses the information from parts c) and d)
f) Explain why the results in parts c) and d) are consistent with each other.
In: Statistics and Probability
Write a yardstick report that examines two or more alternatives for a product, service, or program of your choice. Establish specific criteria by which to compare and evaluate the alternatives. Evaluate each alternative based on your criteria. Conclude your report with a viable recommendation.
Structure your yardstick report as follows:
In: Operations Management
Explain in detail the following tests and when we use them, give
proper justifications & examples?
1. One sample t-test
2. Test of normality
3. Wilcoxon
4. Kruskal
5. Crosstab Chi-Square
In: Statistics and Probability
Explain the management process in details Explaination as possible.
In: Accounting
Explain process of coagulation in detail?
In: Anatomy and Physiology