# The Paradise Shoes Company

**vianmondokan**

The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. And its demand equation is Q = 4100 – 25P. The company is currently producing 1,000 pairs of shoes weekly and is considering expanding its output to 1,200 pairs of shoes weekly. To do this, it will have to lease another shoe-making machine ($2,000 per week fixed payment until the lease period ends).

Show all of your calculations and processes. Describe your answer for each item below in complete sentences, whenever it is necessary.

a.Describe and derive an expression for the marginal cost (MC) curve.

b.Describe and estimate the incremental costs of the extra 200 pairs per week (from 1,000 pairs to 1,200 pairs of shoes).

c.What are the profit-maximizing price and output levels for Paradise Shoes? Describe and calculate the profit-maximizing price and output.

d.Discuss whether or not Paradise Shoes should expand its output further beyond 1,200 pairs per week. State all assumptions and qualifications that underlie your recommendation.

- 6 years ago

**Best Answer**

Purchase the answer to view it

- the_paradise_shoes_company.docx

### Production Cost Analysis and Estimation Applied Problems

# Production Cost Analysis and Estimation Applied Problems

7 years ago### Production Cost Analysis and Estimation Applied Problems

Please complete the followingtwo applied problems:**Problem 1:**

William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns …5 years ago### BUS 640 W3 P2

The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q …

8 years ago### The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC...

The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q …

6 years ago### The Paradise Shoes Company

NOT RATEDThe Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q …

8 years ago### The Paradise Shoes Company

NOT RATED7 years ago### The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. And its demand

NOT RATED7 years ago