What is the cost function for the new product line, Microeconomics

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What is the cost function for the new product line

An existing company is considering expanding into a new product line that will use the same factory as its existing products. The fixed costs for the existing factory are $10,000 a year, where the factory currently produces 100 units. To launch the new line, the company would have to buy new equipment with a fixed cost of $1000. The cost of labor and capital to produce each unit of the new good is $60. The inverse demand for the new product is given by P=76 -.8Q

a) What is the cost function for the new product line?

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Microeconomics: What is the cost function for the new product line

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Recent Questions Asked Microeconomics

Q : What the firm should do in given situation

Q : How much discount would the customer be entitled to

Q : Aggressive advertising campaign

Q : What would be the payment

Q : What is the cost function for the new product line

Q : What is the effect on the accounting records

Q : Describe the purpose of adjusting entries

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Ask an Expert for Answer!!

Microeconomics: What is the cost function for the new product line

Reference No:- TGS048402

Recent Questions Asked Microeconomics

Q : What the firm should do in given situation

Q : How much discount would the customer be entitled to

Q : Aggressive advertising campaign

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Q : What is the cost function for the new product line

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