Fixed & Marginal Costs 2023 Business Finance

2023 Do you remember those storage devices called floppy disks or were they already


Do you remember those storage devices called floppy disks, or were they already obsolete by the time you were born :)? According to Encyclopaedia Brittanica, “Floppy disks were popular from the 1970s until the late 1990s, when they were supplanted by the increasing use of e-mail attachments and other means to transfer files from computer to computer.” One of the more popular brands was Memorex. We will go back in time for this question.

Memorex manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Memorex hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 10 + 2Q2.  

a. What are Memorex’s fixed costs?
b. What is Memorex’s marginal cost?

Now suppose other firms in the market sell the product at a price of $8.

c. How much should Memorex charge for the product?
d. What is the optimal level of output to maximize profits?
e. How much profit will be earned?
f. In the long run, should Memorex continue to operate or shut down? Why?

We give our students 100% satisfaction for their assignment, which is one of the most important reasons students prefer us from other helpers. Our professional group and planners have more than ten years of rich experience. The only reason that our inception days, we have helped more than 100000 students with their assignments successfully. Our expert’s group have more than 2200 professionals of different topics, and that not all; we get more than 300 jobs every day more than 90% of the assignment get the conversion for payment.

Place Order Now