ARC's bid No Bid ABC's manufacturing decision: Adopt current system, or Develop new system. Bids $950 (1/2) Current (3/5) Net Profit $0 $1,400,000 $900,000

Tommy runs a take-out pizza outlet called Healthy Pizza, which is located in a strip mall where there is a lot of parking available. Tommy sells only one type of pizza - a Loaded Vegetarian Pizza. The monthly fixed costs related to making and selling this pizza are: advertising $500, space and machine rental $1500; monthly salary and other costs are also fixed at $2000. The variable costs involved in making and selling each pizza is $4 per pizza, regardless of the monthly quantity produced or sold. Tommy directly competes with a children's pizza place, a meat lover's pizza parlour, as well as other takeout restaurants all located within a three-block radius. Based on past experience, Tommy estimates the monthly demand for his Loaded Vegetarian Pizza as follows, depending on the pizza price. Tommy's Pizza: Costs and Revenues MR Price per Pizza ($) Quantity Sold TR (ATR/AQ) MC 18 3200 57600 17 3600 61200 16 4000 64000 15 4400 66000 14 4800 67200 What is the profit maximizing quantity of…

Hayfever Farms is an 80-acre hay farm in Colorado. The owners are considering changing the farm's name to Blissful Acres and growing strawberries instead of hay. Use the table of marginal cost (MC) and marginal revenue (MR) to answer two questions. Number of acres MC $ MR $ (hay) MR $ (strawberries) 10 320 730 5600 20 200 730 5600 30 540 730 5600 40 730 730 5600 50 1200 730 5600 60 3200 730 5600 70 5600 730 5600 80 6700 730 5600 If they continue to only grow hay, how many acres should Hayfever Farms devote to growing hay in order to maximize profits? acres of hay:   acres If the owners decide to only grow strawberries, how many acres should Blissful Acres devote to growing strawberries in order to maximize profits? acres of strawberries:

a. John operates a firm producing t shirts. There are many such firms producingidentical products to John. What market structure is this? Is it possible for John tomake a profit in the long run? Illustrate using an appropriate diagram. b. John decides to innovate his business and begins printing t shirts with customercreated content. Will John be able to make a profit in the short run and the longrun? Explain using relevant diagrams and comment on the implied market c. Provide a strategy for John to make greater than normal profits in the long run. Isthis likely to be the case in the market for this good?

How HEB behaves toward Walmart is a major determinant of whether it will face entry by new competitors. Explain.       (HEB is a chain store in texas)

Your company operates in a perfectly competitive market. One of your business partners recommends creating an aggressive advertising campaign for your product in order to boost sales. What is wrong with this reasoning?