Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
An industry is described by the following demand and supply functions.
a) What is the market price and output level in the industry?
b) What is the market price and output level when a ﬁrm purchases the sales
right of all the others, and thus becoming a monopolist?
You are the COO at PineApple, a company that produces notebook computers for business
people. The company has just developed a new model — Pbook. For production of Pbook, the
company is considering production at all or some of the following plants.
Average Total Costs (ATC)
As the COO, you need to ﬁnd out how to allocate the production.
a) What are the marginal costs of plant 1, plant 2, and plant 3?
b) How would you allocate the production of Pbook’? What % of total outputs
should be produced at plant 1, plant 2, and plant 3?
c) One of your subordinates argues that either plant 2 or plant 3 does not need to
be used as they have exactly same cost structure. Do you agree? Explain.
d) Your marketing manager reported that that the estimated market price of the
new product is P = $2,000. How many units are you going to produce in total?
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