Explore BrainMass

Marginal Analysis Global Corp

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

(see attached for full problem description)

Global Corp. sells its output at the market price of $9 per unit. Each plant has the costs shown below:

What is the profit at each plant when operating at its optimal output level?

Suppose that you can sell as much of a product (in integer units) as you like at $61 per unit. Your marginal cost (MC) for producing the qth unit is given by:


This means that each unit costs more to produce than the previous one (e.g., the first unit costs 9*1, the second unit (by itself) costs 9*2, etc.).

If fixed costs are $50, what is the optimal output level?

Please specify your answer as an integer.

Assume that a competitive firm has the total cost function:

TC = 1q3 - 40q2 + 710q + 1700

Suppose the price of the firm's output (sold in integer units) is $550 per unit.

Using tables (but not calculus) to find a solution, what is the total profit at the optimal output level?

© BrainMass Inc. brainmass.com October 25, 2018, 9:43 am ad1c9bdddf


Solution Summary

This solution helps to find out optimal output for profit maximization.

See Also This Related BrainMass Solution

Altria Corporation SWOT Analysis Solution

1. What is your impression of the world wide operation of the company? This section refers to Application of concepts / theories in respect to global operations.

2. Conduct a SWOT Analysis of the company. For this section, complete EFAS and IFAS ONLY

3. Does the company have a competitive advantage and/or a competitive strategy? Justify your answer. Porter's model would be applicable here (Five Forces of Competitiveness & Competitive Advantage model). Please avoid repeating the concepts / theories / definitions. I am looking for you applying the concept to this question.

4. Describe the components of the company's value chain. This section should be discussing the concept of Value Chain relevant to the company. Please avoid repeating the concepts / theories / definitions. I am looking for you applying the concept to this question.

5. What strategic alternatives are open to the company? Explain and justify your answer. Explain and justify your answer. This section should discuss alternative strategies / recommendation (strategies such as growth, retrenchment, differentiation, stability, horizontal / vertical /forward / backward integration). Additional research is necessary for justification of your answer.

View Full Posting Details