Purchase Solution

Determine the amount of profit or loss

Not what you're looking for?

Ask Custom Question

Johnston production is a price taker that utilizes this cost structure in the short run:

Output Marginal Cost
1 $10
2 $5
3 $12
4 $23
5 $40

Johnston Production's fixed cost is $20 and the market price of each product sold is $25. Determine the output level that Johnston production should use for maximizing profit. Determine the amount of profit or loss that Johnston production will experience in the short run.

Purchase this Solution
Solution Summary

Johnston Production's fixed cost is $20 and the market price of each product sold is $25. Determine the output level that Johnston production should use for maximizing profit. Determine the amount of profit or loss that Johnston production will experience in the short run.

Solution Preview

At 4 units, the total cost incurred will be $20 (Fixed Cost) + )$10+$5+$12+ $23)= $70. The total ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • IRP, PPP, and Speculating in Currency Derivatives

    Determine the dollar amount of your profit or loss from buying a call option contract specifying C$100,000. b. Determine the dollar amount of your profit or loss from buying a futures contract specifying C$100,000. a.

  • Sanderson Construction: Long term contract for build a baseb

    Determine the amount of gross profit or loss to be recognized in 2012 using the percentage-of-completion method. (Enter your answer in millions. Loss amount should be indicated with a minus sign. Do not round intermediate calculations.

  • Estimate Inventory on Hand to Determine the Amount of Theft Loss

    INSTRUCTIONS: Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation.

  • Taxes: Form 6252 and Form 4797. Installment sale reporting

    Determine the return of capital and installment of gain on the sale C. Determine the interest to be paid for each year of the installment sale D.

  • Decision Theory

    Construct the opportunity loss table and determine the best decision. The opportunity loss is defined as the difference between the highest profit ( payoff) for a state of nature and the actual profit.

  • Future Contracts

    Question: (a) What will your profit or loss be if silver prices turn out to be $14.61 per ounce at expiration? Input the amount as positive value. Round your answer to the nearest whole dollar amount. (e.g., 32.))

  • Amount changes on stock transactions

    Loss or Profit per share = Sale price per share -Purchase per share There is a loss of $50-60= $10 per share (As sale price is less than the purchase price) Thus total loss = Loss per share * Number of shares =10* 100=$1000 b.

  • Disney corporation: Ratio analysis

    GROSS PROFIT MARGIN: This is a ratio that measures the amount of profit, generated by the company, on its core operations. The gross profit represents the gain (loss) generated in pursuing its main trading activity.

  • Marginal Analysis: Perfectly Competitive Firm

    The best suited amount of units to produce is 3, given that it has the least amount of loss.

View More Related Solutions