An Electronics Firm Produces Two Models of Pocket Calculators: the A-100

question 4

Multiple Choice

An electronics firm produces two models of pocket calculators: the A-100 (A) , which is an inexpensive four-function calculator, and the B-200 (B) , which also features square root and percent functions. Each model uses one (the same) circuit board, of which there are only 2,500 available for this week's production. Also, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators, of which the A-100 requires 15 minutes (.25 hours) each, and the B-200 requires 30 minutes (.5 hours) each to produce. The firm forecasts that it could sell a maximum of 4,000 A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each, and profits for the B-200 are $4.00 each. What are optimal weekly profits?

• A)$10,000
• B)$4,600
• C)$2,500
• D)$5,200
• E)$6,400

Understand how a monopolist determines profit-maximizing output and price using demand and cost data.

Describe the economic implications of producing in the elastic vs inelastic portions of the demand curve for a monopolist.

Explain how monopolist's profits, losses, and break-even points are determined.

Analyze the non-existence of a supply curve in pure monopoly scenarios.

---

Definitions:

Communication Styles

The characteristic ways in which individuals convey their thoughts, feelings, and ideas to others, which can vary widely among people or cultures.

Task-Irrelevant Messages

Information presented that is not directly related to the task at hand, potentially impacting attention and cognitive processing.

Focused Messages

Communications specifically designed to capture attention and convey information or directives effectively to a targeted audience.

Evaluation Messages

Feedback or information provided to individuals that assesses their performance, behavior, or characteristics.