Salvatore, D. (2006) Managerial economics in a global economy. 6th ed. New York: Oxford University Press. ISBN-13: 978-0-19-530719-1.
The full details and information for this assignment can be found on page 32 of your textbook. You are to read the Integrating Problem (Problem 15), which involves the decision of whether to purchase a pharmacy. This problem will require you to utilize and apply concepts acquired throughout your reading to develop answers and suggestions regarding the purchase decision.
After you have read the details of the scenario, answer the following:
What would be the business and economic profit if Samantha purchased the pharmacy?
What theory of profit would account for profits being earned by the pharmacy during the first 3 years?
What is your recommendation regarding the proposed purchase? Should Samantha purchase the pharmacy?
Your answers should identify and analyze the issues surrounding the purchase decision. Any results produced or claims made should be supported with logical reasoning and with evidence from the scenario, the textbook, and/or other supplemental resources.
2 pages and 5 Reference
The full details and information for the assignment can be found on page 65 of your textbook. You should complete Problems 7, 8, and 9 at the end of Chapter 2.
Problem 7: Given a total-cost schedule, construct the average- and marginal-cost schedules.
Problem 8: With the information from Problem 7, construct graphical cost curves and explain the relationship among the cost curves.
Problem 9: Using the total-revenue curve of Problem 1 in the textbook and the total-cost curve of Problem 7, derive the total-profit function and show how the firm determines the profit-maximizing level of output.
Your answers should identify and analyze the relationships between total, average, and marginal costs. Any results produced or claims made should be supported with logical reasoning and with evidence from the scenario, textbook, and/or other supplemental resources
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