Suppose That You Are an Owner of a Company That

question 38

Essay

Suppose that you are an owner of a company that produce a special weight-loss over-the-counter medicine in a monopolistically competitive industry.The demand and the total cost for your medicine per day are given by the following table.
a. Calculate Average Total Cost, Marginal Cost, Total Revenue, Marginal Revenue, and Profit for each bottle of the medicine produced.
b. How many bottles of this medicine should you produce in order to maximize profit, and what are the market price and the corresponding profit?
c. Suppose that you pay for an advertising flyer for a $100 flat fee and after that the demand for the medicine increases (see the table below for the new demand information). How do your answers in parts a. and b. change?

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Definitions:

Family-School Partnerships

collaborations between families and schools intended to improve students' learning and development by leveraging the strengths and resources of both environments.

Family Empowerment Model

A model that focuses on strengthening the capacities of families to influence their own lives and environments for better outcomes.

Decision-Making Power

The authority or capacity to make choices or determine the course of action in a situation or within an organization.

Comer's School Development

A comprehensive school reform program that emphasizes collaborative relationships among parents, educators, and community resources to address students' educational and developmental needs.