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27.08.2019-7 views -Economics

 Economics Essay

EC 561 PAGE 176 5-18

Sozonte Castro

Q| TC| TFC| TVC| MC| AC| AFC| AVC

0| 420| 420| 0| | | |

1| 500| 420| 80| 80| 500| 420| 80

2| 560| 420| 140| 60| 285| 210| 70

3| 610| 420| 190| 50| 203| 140| 63

4| 670| 420| 250| 60| 169| 105| 63

5| 745| 420| 325| 75| 149| 84| 65

6| 840| 420| 420| 95| 140| 70| 70

7| 960| 420| 540| 120| 137| 60| 77

8| 1110| 420| 690| 150| 139| 53| 86

9| 1295| 420| 875| 185| 144| 47| 97

5-19

The Williams Company is using a great optimal mixture of labor and capital to make its current output for the reason that marginal merchandise to price ratios is definitely equal for all inputs. The ratio intended for both inputs is a couple of units per dollar. Studying Managerial Decisions

Abundant Manufacturing

1 ) Why carry out many organizations use cost-plus pricing? Companies use cost-plus pricing mainly because is a easy method to can determine the price of an item or services.

2 . What potential problems do you envision with cost-plus pricing? It could be a problem together with the accuracy of cost-plus prices when identifying the cost

a few. Should Gina content the cost increase? I believe Gina should not content the increase because revenue increase in the future by broadening productions

4. Is definitely the increase more likely to be justified in the growing process or the long haul? The increase will be justified in the long run? It will justified in the long run since will be able to create the product devoid of looking for a great alternatives, which will at the long term the company will be better off.

5. How can a $3 increase in the price tag on machine parts affect Gina's own creation decisions? It will eventually affect Gina's decision since she will need to come up with an additional $150, 1000 to purchase the minimum order of 50, 000.

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