Homework answers / question archive / A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs

A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs

Economics

Share With

A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs. If it produces an additional watch, will its average total costs rise, fall, or stay the same?

Option 1

Low Cost Option

Download this past answer in few clicks

2.89 USD

PURCHASE SOLUTION

Already member? Sign In

Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 3 times

Completion Status 100%

View Answer

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)

Related Questions

Managerial Economics ARE 100A University of California Davis Spring Quarter 2008 Homework 2 Due Friday April 11 2008 1Draw the indifference curves for the following individualsrsquo preferences for two goods hamburgers and beer
Should the government use inkind subsidy or rental subsidy to subsidize the housing market in Hong Kong Discuss
Which recent occurrences had an effect on the aggregate demand and supply in the Philippines Elaborate each and identify the shortterm and longterm consequenceseffects of the events that have taken place
Duopoly quantitysetting firms face the market demand p270 Q
Why is macroeconomics important
compare the market environment of monopolistic competition with that of perfect competition quoting real world business examples
Discuss a real business or hypothetical problems in which you or someone in the management position at these two companies needed to consider both the macroeconomic and microeconomic factors to analyze these problems so as to come up with some possible solutions
1Calculate the present worth economically equivalent to the cash flow series shown
Texas AampM International University ECO 3320 CHAPTER 23 1Vertical relationships can increase profits through providing a mechanism for firms from evading regulation creating a doublemarkup problem making the incentives of manufacturers and retailers unaligned preventing price discrimination Vertical relationships can increase profits through preventing firms from evading regulation eliminating a doublemarkup problem making the incentives of manufacturers and retailers unaligned preventing price discrimination Vertical relationships can increase profits through preventing firms from evading regulation creating a doublemarkup problem better aligning the incentives of manufacturers and retailers preventing price discrimination Vertical relationships can increase profits through preventing firms from evading regulation creating a doublemarkup problem making the incentives of manufacturers and retailers unaligned facilitating price discrimination When a supplier becomes more profitable there is increased benefits from acquiring it the benefits from a stronger firmtofirm relationship are increased the benefits from a stronger firmtofirm relationship are decreased there is no additional reason to acquire it The various ways that vertical relationships can evade regulation include tying the sale of an unregulated good to a customer39s choice of a regulated good unbundling regulated and unregulated goods preventing the exclusion of rival unregulated goods insuring tax rates are uniform across jurisdictions The various ways that vertical relationships can evade regulation include tying the sale of a regulated good to a customer39s choice of an unregulated good bundling regulated and unregulated goods preventing the exclusion of rival unregulated goods insuring tax rates are uniform across jurisdictions The various ways that vertical relationships can evade regulation include tying the sale of a regulated good to a customer39s choice of an unregulated good unbundling regulated and unregulated goods excluding sellers of competing unregulated goods insuring tax rates are uniform across jurisdictions The various ways that vertical relationships can evade regulation include tying the sale of a regulated good to a customer39s choice of an unregulated good unbundling regulated and unregulated goods preventing the exclusion of rival unregulated goods exploiting differences in tax rates across jurisdictions Double markup problems arise when upstream firms have market power downstream firms have no market power upstream and downstream products are unrelated in demand upstream and downstream firm39s pricing decisions tend to increase the demand for the other product Double markup problems arise when upstream firms have no market power downstream firms have market power upstream and downstream products are unrelated in demand upstream and downstream firm39s pricing decisions tend to increase the demand for the other product Double markup problems arise because upstream firms have no market power downstream firms have no market power upstream and downstream products are complementary in demand upstream and downstream firm39s pricing decisions tend to increase the demand for the other product Double markup problems arise because upstream firms have no market power downstream firms have no market power upstream and downstream products are unrelated in demand upstream and downstream firm39s pricing decisions tend to decrease the demand for the other product The conditions for unaligned retailer and manufacturer incentives include customers are unfamiliar with the product features before they shop for it retailers have no opportunity to educate consumers manufacturers are more efficient at education consumers demand for the product is decreased with some consumer education The conditions for unaligned retailer and manufacturer incentives include customers are familiar with the product before they shop for it retailers have can educate consumers at the point of sale manufacturers are more efficient at education consumers demand for the product is decreased with some consumer education The conditions for unaligned retailer and manufacturer incentives include customers are familiar with the product before they shop for it retailers have no opportunity to educate consumers manufacturers have little scope for educating consumers demand for the product is decreased with some consumer education The conditions for unaligned retailer and manufacturer incentives include customers are familiar with the product before they shop for it retailers have no opportunity to educate consumers manufacturers are more efficient at education consumers demand for the product is increased with some consumer education Mechanisms that manufacturers can use to deal with misaligned retailer incentives include setting a minimum retail price allowing many retailers to sell the product in each market preventing retailers from compensating sales staff for demonstrating the product eliminate manufacturer staff that was demonstrating the product in stores Mechanisms that manufacturers can use to deal with misaligned retailer incentives include setting a maximum retail price providing an exclusive contract to a single retailer in a market preventing retailers from compensating sales staff for demonstrating the product eliminate manufacturer staff that was demonstrating the product in stores Mechanisms that manufacturers can use to deal with misaligned retailer incentives include setting a maximum retail price allowing many retailers to sell the product in each market compensating retailers39 sales staff for demonstrating the product eliminate manufacturer staff that was demonstrating the product in stores Mechanisms that manufacturers can use to deal with misaligned retailer incentives include setting a maximum retail price allowing many retailers to sell the product in each market preventing retailers from compensating sales staff for demonstrating the product providing manufacturer staff to demonstrate the product in stores The conditions in which vertical relationships can enhance a firm39s ability to price discriminate include the manufacturer39s product is of value to multiple types of customers the costs of arbitraging the price differences across markets is large the manufacturer acquires the distributer in the higher priced market competition provide little ability for the manufacturer has to price above marginal cost The conditions in which vertical relationships can enhance a firm39s ability to price discriminate include the manufacturer39s product is of value to just one type of customer the costs of arbitraging the price differences across markets is small the manufacturer acquires the distributer in the higher priced market competition provide little ability for the manufacturer has to price above marginal cost The conditions in which vertical relationships can enhance a firm39s ability to price discriminate include the manufacturer39s product is of value to just one type of customer the costs of arbitraging the price differences across markets is large the manufacturer acquires the distributer in the lower priced market competition provide little ability for the manufacturer has to price above marginal cost The conditions in which vertical relationships can enhance a firm39s ability to price discriminate include the manufacturer39s product is of value to just one type of customer the costs of arbitraging the price differences across markets is large the manufacturer acquires the distributer in the higher priced market lack of competition provide the manufacturer with the ability to price above marginal cost A characteristic of outsourcing is essentially the opposite of vertical integration likely to be profitable exactly when vertical integration is profitable it prevents a firm from focusing on its core competencies it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain A characteristic of outsourcing is completely unrelated to vertical integration likely to be profitable exactly when vertical integration is unprofitable it prevents a firm from focusing on its core competencies it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain A characteristic of outsourcing is completely unrelated to vertical integration likely to be profitable exactly when vertical integration is profitable can allow a firm to focus on its core competencies it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain A characteristic of outsourcing is completely unrelated to vertical integration likely to be profitable exactly when vertical integration is profitable it prevents a firm from focusing on its core competencies can allow for the exploitation of differing degrees of economies of scale at different points in the supply chain if your supplier becomes more profitable you become more profitable by acquiring it you become less profitable by acquiring it acquiring it will make you more profitable if there are no synergies to exploit unless there are no synergies to exploit through acquisition acquiring it will not make you more profitable A requirement for acquiring a related firm to generate value is it be profitable you be profitable you will alter operations because of the acquisition all synergies between the firms were exploited before the acquisition Acquiring a supplier because it becomes more profitable will raise the asking price to offset any increase in cash flow over time will increase your profits will decrease your profits will make you alter operations
Many of Italy39s great art treasures are owned and managed by the government

menu