
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
- The Al-Maskri Company in Seeb makes flower pots and receives RO 10 for each finished pot. Mr. Al-Maskri’s only factors of production are flower pot machine operators (labor) and a small building where the laborers work from. The number of flower pots per day the company produces depends on the number of employee-hours per day as shown below. The wage is RO 15 per hour.
Number of pots per day |
Number of employee-hours per day |
0 |
0 |
5 |
1 |
10 |
2 |
15 |
4 |
20 |
7 |
25 |
11 |
30 |
16 |
35 |
22 |
- Al-Maskri’s daily fixed cost for the flower pot making machine and building is RO 60. Complete the following Table showing total revenue, variable cost, total cost, and daily profit for various quantities of daily flower pot production.
Quantity of Pots per day |
Total Revenue RO per day |
Variable Costs RO per day |
Total Costs RO per day |
Profit RO per day |
0 |
0 |
0 |
60 |
-60 |
5 |
|
|
75 |
-25 |
10 |
|
|
|
|
15 |
|
|
|
|
20 |
|
105 |
|
|
25 |
|
|
|
|
30 |
300 |
|
|
|
35 |
|
|
|
-40 |
- The profit maximizing quantity of pots is __________ and at that number of pots the daily profit made is RO ________________________.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Salisbury Smacthic Coimalies bet ucen O and lo00 Smeathies each manth. Their fixed costs $2000 a monthpand their monthly Varisble Gre cest is Cv Cx) = 0.o00123-0.082²+40x . dellars and where Cy is in number of smacthies sold R the . O what is the cost functicn cCx) accohnting for fixed cad Variable cests? Compute the merçinsl cost functien.arrow_forwardPro expert hero Hand written solution is not allowed.arrow_forward(2 ex Production function is flu, X2)=min (x,, 2-x) Dwhat are the conditional factor demand of y = 10 OVA the firm faces w, and w₂ as input prices, what is the cost function?arrow_forward
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education


Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education