Calculate the average production cost
Two car manufacture, Saab and Volvo have fixed costs of $1 billion and marginal costs of $10,000 per car. If Saab produces 400,000 cars per year and Volvo produces 200,000, calculate the average production cost
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What would be the firm rsquo s profit or loss at the following units of production sold: 12,000 units? 15,000 units? 20,000 units? Find the degree of operating leverage for the production and sales levels given in part (c).
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Calculate the profit-maximizing price and quantity combination for the firm. What is the firm's profit?Instead of the demand function assumed in part b, assume instead that the market demand shift outward and becomes flatter.
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