1. Assume that you can sell widgets at $25 per widgets, for as many widgets as you can make. Assume that the marginal cost of producing each widget increases with the number of widgets that are produced. The formula is MC(Y) = Y2. For example, the marginal cost of producing the second widget is 4.
a) Using Excel or similar spreadsheet program, calculate the revenues for producing 1, 2, 3, ... , 10 widgets. Calculate the marginal costs of producing the 1, 2, 3, ..., 10 widgets. Calculate the total cost to produce 1, 2, 3, ... , 10 widgets. Determine your profits for producing 1, 2, 3, ..., 10 widgets. What level of production maximizes your profits?
b) Remember from micro economics that in a perfectly competitive market, a producer will produce the number of products such that MC = Price. Is this the case here? Verify it.© BrainMass Inc. brainmass.com October 24, 2018, 5:08 pm ad1c9bdddf
See attached file.
I set up the Excel spreadsheet to answer the questions. Look at the formulas to get a better grasp of the mechanics of solving similar problems.
# produced/sold Sales Marginal Cost Total Costs Profit
1 $25.00 ...
The solution presents a detailed spreadsheet to solve the questions in the problem. There is narrative for more understanding.
Business case model
Please read the attached case and answer to the following questions with in depth information.
1. Evaluate Fairbanks' approach to entrepreneurship in the credit card industry.
2. Identify Capital One's key functional strategies, company policies, and organizational structure and how they support/fail to support the company's overall strategy and objectives.
3. Write a one-sentence statement that summarizes Capital One's strategy.
4. Evaluate Capital One's strategy. Is is internally consistent? What are Capital One's key competitive advantages?
5. Was the company's strategy well-suited to the competitive environment that it faced? Why or why not?
6. Evaluate the America One and Summit Acceptance Corporation initiatives. Trying not to use hindsight, would you have supported either? Both? Why? Why not?
7. What strategic issues does Capital One face at the time of the case?View Full Posting Details