(each answer between 50 and 150 words) Suppose that your company makes 20 doorbells at a cost of $180 per month. They can increase production to 30 doorbells at a cost of $300 per month. How much does...

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(each answer between 50 and 150 words)


Suppose that your company makes 20 doorbells at a cost of $180 per month. They can increase production to 30 doorbells at a cost of $300 per month.
How much does it cost to produce one doorbell at each production level?The Company should pick a production of 30 doorbells if the price is above? $__.__If doorbells sell for $10 each what production level should the company pick and why?Why is there a decrease in efficiency?




Answered Same DayFeb 25, 2022

Answer To: (each answer between 50 and 150 words) Suppose that your company makes 20 doorbells at a cost of...

Komalavalli answered on Feb 26 2022
101 Votes
1. Company production levels are 20 door bells and 30 door bells
Production of 20 door bells cost $180.At this level the cost of producing one door bell is $ 90 (cost of doorbell = 180/ Number of doorbell = 20)
Production of 30 door bells cost $300.At this level the cost of producing one door bell is $ 100 (cost of doorbell = 300/ Number of doorbell = 30)
Perfect competition equilibrium level MC = P. By comparing the production level of 30 and 20 door bells the marginal cost of...
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