Managing in Monopolistic and Competitive Markets You are the GM of a firm that manufactures PC’s Dem
Managing in Monopolistic and Competitive Markets
You are the GM of a firm that manufactures PC’s Demand for
them has dropped 50%, thanks to a soft economy The sales manager has
identified only one potential client, who has received several quotes for 10000
new PC’s According to the sales manager, the client is willing to pay $650
each of the 10000 Your production line is idle, so you can make them easily
The accounting department provided you with the following info about the
unit(average) cost of producing 3 potential quantities of PC’s:
10000 PC’s 15000
PC’s 20000 PC’s
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper NowMaterials 500 500 500
Depreciation 200 150 100
Labor 100 100 100
Total Unit Cost 800 750 700
Based on this info, should you accept the offer to produce
10000 at $650? Explain
