Economy

SoccerBoss
Category:
Business & Finance
Price: $5 USD

Question description

Assume you are the plant manager for Crossroads Sign Company, which produces road signs in a market that approximates perfect competition. Due to a slow economy, business has been slow and the company is losing money every month. The owners have asked you whether to continue operations or to shut down at least until the economy improves. You have the following information available:

Marginal Revenue (MR) = $130
            Total Cost (TC) = $1,100 + 135Q + 0.6Q2
            Marginal Cost (MC) = 135 + 1.2Q

As the plant manager, should you recommend to the owners that the plant be shut down for a while? Justify your answer using at least two analytical techniques and presenting the information graphically.

Create your report in a 2- to 3-page Microsoft Word document.

 

 

Tutor Answer

(Top Tutor) Daniel C.
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School: Cornell University
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