economics
posted by ann .
Redstone Clayworks, Inc. is located in Sedona, Arizona and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot, Lowe’s, Front Gate, and other upscale home product chains. There is virtually no product differentiation; a clay fire pit is a clay fire pit.
The spreadsheet below gives some of Redstone’s production cost data. Enter this data in your own Excel spreadsheet. (Remember our discussion of Smith Farms in the Attend session!) Add columns 5, 6, 7, and 8 to show, respectively, average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and shortrun marginal cost (SMC). You will send me the spreadsheet via the Drop Box. Don’t send it yet, however, because you will need to add more columns, as explained below.
(1) (2) (3) (4)
Q TC TFC TVC
0 5000 5000 0
100 10000 5000 5000
200 19000 5000 14000
300 27000 5000 22000
400 38000 5000 33000
500 50000 5000 45000
600 66000 5000 61000
700 84000 5000 79000
800 104000 5000 99000
900 126000 5000 121000
1000 150000 5000 145000
The world market demand and supply curves for clay fire pots intersects at $190 per unit. Add columns 9, and 10 to show, respectively, total revenue (TR) and marginal revenue (MR). Add column 11 to show profit (i.e., TRTC). Add column 12 to show profit per unit (i.e., average profit). Add column 13 to show profit margin (i.e., price minus average total cost).
Submit your Excel spreadsheet to the Drop Box. [Hint: At Q = 400: AVC = 82.50, SMC = 110, MR = 190, profit = 38,000, and profit margin = 95].
type here 1. If Redstone wanted to minimize average total cost, it would produce how many units?
Respond to this Question
Similar Questions

Physics
A lump of clay with a mass of 5.0 ! 102 kg is thrown toward a wall with a velocity of 3.0 m/s. The clay bounces off the wall with a velocity of #0.5 m/s. What is the impulse on the clay? 
Trigonometry (Law of Sine)
Fire towers A and B are located 10 miles apart. They use the direction of the other tower as 0°. Rangers at fire tower A spots a fire at 42°, and rangers at fire tower B spot the same fire at 64°. How far from tower A is the fire … 
Trigonometry (Law of Sine)
Fire towers A and B are located 10 miles apart. They use the direction of the other tower as 0°. Rangers at fire tower A spots a fire at 42°, and rangers at fire tower B spot the same fire at 64°. How far from tower A is the fire … 
physics
A 2000 kg car is rolling at 2.0 m/s. You would like to stop the car by firing a 12 kg blob of sticky clay at it. How fast should you fire the clay? 
math
part a: Lucy makes pottery to sell. One week , she uses 6 3/4kg of clay next week 2 2/3 clay. HOW much does she use during 2 weeks ? 
math
eva wants to make two pieces of pottery.she needs 3/5 pound of clay for one piece and 7/10 pound of clay for the other piece.she has three bags of clay that weigh 4/5 pound each.how many bags of clay will eva need to make both pieces … 
math
eva wants to make two pieces of pottery. She needs 3/5 pound of clay for one piece and 7/10 pound of clay for the other piece. She has three bags of clay that weigh 4/5 pound a piece. How many bags of clay will eva need? 
Science
A 2000 kg car is rolling at 3 m/s. You would like to stop the car by firing a 10 kg blob of sticky clay at it. How fast should you fire the clay? 
Math
I am also having trouble figuring out the below: Eva wants to make two pieces of pottery. She needs 3/5 pound of clay one piece and 7/10 pound of clay for the other piece. She has three bags of clay that weigh 4/5 pound each. How many … 
Math Help
I am having a lot of difficulty please help. Eva wants to make two pieces of pottery. She needs 3/5 pound of clay for one piece and 7/10 pound of clay for the other piece. She has three bags of clay that weigh 4/5 pound each. How many …