A kid wants to open a lemonade stand in their neighborhood. They would have elastic supply because O Lemonade takes a long time to produce O They can only produce one product O The product has to be sold from their house O They have flexible inputs
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- JYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)answer this question bu not on excelAriana Grande has just finished recording her latestCD. Her record company’s marketing departmentdetermines that the demand for the CD is asfollows:Price Number of CDs$24 10,00022 20,00020 30,00018 40,00016 50,00014 60,000The company can produce the CD with no fixed costand a variable cost of $5 per CD.a. Find total revenue for quantity equal to 10,000,20,000, and so on. What is the marginal revenuefor each 10,000 increase in the quantity sold?
- What specific data must a firm examine to decide the quantity of product it should produce to make maximum profit? How will the firm know if it should produce at all? How will the firm know if it mak a an economic profit?show calcuWhat are the short-run and long-run costs of the production of Walmart?
- A producer of ink bottles in the shape of oil tankers comes in one morning to discover that the ink bottle on his desk has cracked overnight. The ink spill has obliterated several entries in his books. Please help the producer reconstruct the following table. Quantity 0 10 20 30 40 50 AFC XXX TVC ATC XXX 420 2 20 14 MC TC XXX 11 390Suppose a resturant in a city making above normal profit in the short run. How will the market behave inthe long run? Can the said restuarant continue to make above normal profit in the long run too. explain using illustrationexplain what is happening in this graphs