Suppose the Yearly Supply Function for a Particular Actor to Star

question 125

Essay

Suppose the yearly supply function for a particular actor to star in a film is p = 150,000x.
(a)How many films per year is the actor willing to produce if he earns $300,000 per film?
(b)How many films per year is the actor willing to produce if he earns $900,000 per film?
(c)How does the amount supplied change as the price increases?

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Definitions:

Responsiveness

The ability of a system, organization, or individual to quickly react to changes, demands, or opportunities with effective actions.

Fixed Costs

A type of business expense that remains constant regardless of changes in production volume or sales, such as lease payments and utility bills.

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another, including fuel, labor, and vehicle maintenance costs.

Flexibility

Flexibility in a business context refers to the ability to adapt quickly to changes in the market or operational conditions, maintaining efficiency and meeting customer demands.