Larraine Is the Only Jembe Drum Producer in Caltouse

question 73

Essay

Larraine is the only jembe drum producer in Caltouse.She can sell a single drum for $80 but must drop her price by $5 for every extra drum she wants to sell.Her total fixed costs are $60 and the variable cost of the first drum produced is $36.For each drum thereafter,the variable costs drop by $4 up to and including the fourth drum.After that,the cost of each additional drum increases by $4.
a)Draw the AR,MR,AC,and MC curves on the figure below.

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Definitions:

Top Management

Consists of the highest-level executives of an organization, responsible for strategic decisions and overall direction.

Training Dollars

Funds allocated by an organization for the development and education of its employees.

Introduction Programs

Organized initiatives designed to familiarize new employees or participants with the policies, procedures, and culture of an organization or program.

Task Design

The process of defining the way work will be performed and the tasks that will be required in a given job.