Bungalow bill accounting services, economics homework help
The Bungalow Bill Accounting Service, LLC uses computer technology and data-entry operators to provide accounting services in a competitive market. The price for each statement is $200. Total fixed costs are $1500/week.
(10 points)
|
Data Entry Operators |
# of Statements per week |
Marginal Product |
Total Revenue |
|
0 |
0.0 |
||
|
1 |
5.0 |
||
|
2 |
9.0 |
||
|
3 |
12.0 |
||
|
4 |
14.0 |
||
|
5 |
15.5 |
||
|
6 |
16.5 |
||
|
7 |
17.0 |
How many data entry operators would BBAS, LLC hire at a weekly wage of $250 if Bill were attempting to maximize profits?
Determine the firm’s profits.
Suppose a decrease in demand reduces the market price to $150 per statement.
Should Bill stay open in the short run? Why?
Should Bill return to being a tiger hunter in the long run? Provide a brief explanation.
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