MBA 620: Financial decision making

Question 2: At the profit-maximizing level, what is the relationship between marginal cost, marginal revenue, price, and average cost for firms in competitive and oligopolistic industries?

The CFO has provided the following information to you:

  • fixed costs for the MiniZ are $2.75 million
  • variable cost per unit is $200

She wants you to analyze the fixed and variable costs, optimal level of production, and profit for the MiniZ component.