Managerial Economics Assignment
Based on the materials presented, develop a product idea.
A) Describe the product in detail.
B) Assume you have sufficient production capacity to manufacture the product.
C) What are the costs associated with the manufacturing of this product? Provide detailed cost data. You cost data should be segmented into fixed and variable costs.
D) Assume that the market demand for this product is 500 units and your company's market share is 5 percent. Based on your cost data, calculate:
1) Total Cost
2) Fixed cost per unit(average fixed cost)
3) Variable cost per unit (average variable cost)
4) Total Cost Per Unit(average total cost)
5) Marginal Cost
E) Based on your calculations from #3 and #4, above, produce
1) Graph that shows fixed cost, variable cost and total cost
2) Graph that shows average fixed cost, average variable cost, and average fixed cost.
3) Based on the two graphs, discuss your observations on the behavior of the costs.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.