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ECON 649 Economics Analysis Worksheet 5 The Firm and Its Customers

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ECON 649 Economics Analysis Worksheet 5 Case Study Answers

Pricing and Production Decisions for Firms

Yes, No, Maybe Explain
Individual cattle farms (around 400,000) that supply beef to McDonald’s
McDonalds Hamburgers
Stuff sold by Target or Kmart
Coffee from local café
Orchards growing apples
Levi for the jeans it designs

Pricing and Production Decisions for Firms

One Isoprofit Curve
Price-Quantity Combinations A B C
Q =?P = $190 Q = 300,000P = $200 Q = 290,000P =?
Profit

Pricing and Production Decisions for Firms

Economies of Scale & Network Effects

Yes, No, Maybe Explain
Individual cattle farms (around 400,000) that supply beef to McDonald’s
McDonalds Hamburgers
Stuff sold by Target or Kmart
Cup of coffee at local café
Apples
Levi the company designing jeans

Economies of Scale & Network Effects

Economies of Scale & Network Effects

Summary

Yes, No, Maybe Explain
Individual cattle farms (around 400,000) that supply beef to McDonald’s
McDonalds Hamburgers
Stuff sold by Target or Kmart
Coffee sold at local café (small business)
Orchards producing apples
Levi jeans

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