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Wolfgang is a typical producer in a perfectly competitive piano industry (e all other producers of pianos face the same costs as Wolfgang). The following production and ocost data apply to the long tun as well as the short run Fied costs (rent) are unrecoverable in the short run and are equal to S2400 pet month Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per plano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right Wolfgang wil shut down if the price per piano is less than OA S4000. OB. $5000 OC. $3000 OD None of the above The long run equilibrium price is equal to

Wolfgang is a typical producer in a perfectly competitive piano industry (e all other producers of pianos face the same costs as Wolfgang). The following production and ocost data apply to the long tun as well as the short run Fied costs (rent) are unrecoverable in the short run and are equal to S2400 pet month Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per plano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right Wolfgang wil shut down if the price per piano is less than OA S4000. OB. $5000 OC. $3000 OD None of the above The long run equilibrium price is equal to

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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ponts) possible piano industry (e, all gang). The following s the short run. Fixed equal to $2400 per month stic), which cost $1000 lgang's time. Wolfgang's Pianos (Q) Hours () Raw Materials (S) 100 150 240 400 1000 2000 3000 4000 2. an
Transcribed Image Text:ponts) possible piano industry (e, all gang). The following s the short run. Fixed equal to $2400 per month stic), which cost $1000 lgang's time. Wolfgang's Pianos (Q) Hours () Raw Materials (S) 100 150 240 400 1000 2000 3000 4000 2. an
Test: Quiz 6 (Chapter 9) Question Wolfgang is a typical producer in a perfectly competitive piano industry (te all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long tun as well as the short run Fixed costs (rent) are unrecoverable in the short run and are equal to S2400 per month Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per plano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per plano is less than OA. $4000. OB. $5000. Oc. $3000 OD. None of the above. The long run equilibrium price is equal to O A. $3000. OB. $5000. OC. $4000. OD. None of the above. In the short run Wolfgang will produce $3500, per piano is $5500. pianos if the price per piano is planos if the price pianos if the price per piano is $4500, and OA 2:3, 3 OB. 0, 1;3 Oc. 1:2:3 OD. 0,2;3
Transcribed Image Text:Test: Quiz 6 (Chapter 9) Question Wolfgang is a typical producer in a perfectly competitive piano industry (te all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long tun as well as the short run Fixed costs (rent) are unrecoverable in the short run and are equal to S2400 per month Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per plano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per plano is less than OA. $4000. OB. $5000. Oc. $3000 OD. None of the above. The long run equilibrium price is equal to O A. $3000. OB. $5000. OC. $4000. OD. None of the above. In the short run Wolfgang will produce $3500, per piano is $5500. pianos if the price per piano is planos if the price pianos if the price per piano is $4500, and OA 2:3, 3 OB. 0, 1;3 Oc. 1:2:3 OD. 0,2;3
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